Form 40-F - Registration statement [Section 12] or Annual Report [Section 13(a), 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 40-F

o Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

x Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934


For the fiscal year ended December 31, 2023			Commission File Number 001-38628

SilverCrest Metals Inc.

(Exact name of Registrant as specified in its charter)


British Columbia, Canada (Province or other jurisdiction of incorporation or organization)			1040 (Primary Standard Industrial Classification Code Number)			N/A (I.R.S. Employer Identification Number)

570 Granville Street, Suite 501

Vancouver, British Columbia V6C 3P1

Canada

(604) 694-1730

(Address and telephone number of Registrant's principal executive offices)

C T Corporation System

1015 15th Street N.W., Suite 1000

Washington, DC 20005

(202) 572-3100

(Name, address (including zip code) and telephone number (including

area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Common Shares, no par value	SILV	NYSE American LLC

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:


x Annual information form			x Audited annual financial statements

Indicate the number of outstanding shares of each of the registrant's classes of capital or common stock as of the close of the period covered by the annual report: As at December 31, 2023, 146,934,814 common shares of the Registrant were issued and outstanding.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

x Yes o No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company o

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. o

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements included in the filing reflect the correction of an error to previously issued financial statements. o

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-(b).o

EXPLANATORY NOTE

SilverCrest Metals Inc. (the "Company" or the "Registrant") is a Canadian issuer that is permitted, under the multijurisdictional disclosure system adopted by the United States Securities and Exchange Commission (the "SEC") and the securities regulatory authorities in Canada ("MJDS"), to prepare this annual report on Form 40-F (this "Annual Report") pursuant to Section 13 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), in accordance with Canadian disclosure requirements, which are different from those of the United States. The Company is a "foreign private issuer" as defined in Rule 3b-4 under the Exchange Act and Rule 405 under the Securities Act of 1933, as amended. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3 thereunder.

FORWARD LOOKING STATEMENTS

The Exhibits incorporated by reference into this Annual Report of the Registrant contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of Canadian and United States securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including gold and silver production and planned work programs. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; the impact of the COVID-19 pandemic on operations, future financings, the Company's share price and on the timing and completion of exploration programs, technical reports and studies; mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting; and the development and advancement of the Company's environmental, social and corporate governance strategy.

Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; estimates of mineral resources and metallurgical recoveries; and mining operational and development risks. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuations in the price of gold and silver; the impact of the Ukraine-Russia conflict on supply chains and pricing and availability of commodities; timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company's share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of mineral resource estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; fluctuations in the foreign exchange rate (particularly the Mexican peso, Canadian dollar (C$) and United States dollar ($ or US$); risks associated with taxation in multiple jurisdictions; uncertainty in the Company's ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; risks associated with the Company's debt; uncertainty as to whether the Company's exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company's expectations; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not

exhaustive of the factors that may affect the Company's forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.

The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to update or revise any forward-looking statements included in this Annual Report if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.

NOTE TO UNITED STATES READERS - DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES

The Registrant is permitted, under MJDS, to prepare this Annual Report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Registrant prepares its financial statements, which are filed with this Annual Report, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), and which may not be comparable to financial statements of United States companies.

RESOURCE ESTIMATES

The Company is subject to the reporting requirements of the applicable Canadian securities laws and, as a result, reports the mineral resources and mineral reserves of the projects it has an interest in according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the SEC that are applicable to domestic United States reporting companies. Any mineral reserves and mineral resources reported by the Company in accordance with NI 43-101 may not qualify as such under SEC standards. Accordingly, information included or incorporated by reference in this Annual Report concerning descriptions of mineralization and estimates of mineral resources and mineral reserves under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

CURRENCY

All dollar ($) amounts in this Annual Report are in US$, unless C$ are indicated. On December 31, 2023, the daily exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was US$1.00 = C$1.3226 (C$1.00 = US$0.7561).

ANNUAL INFORMATION FORM

The Company's Annual Information Form for the fiscal year ended December 31, 2023 (the "AIF") is filed as Exhibit 99.1 to this Annual Report and is incorporated by reference herein.

AUDITED ANNUAL FINANCIAL STATEMENTS

The audited consolidated financial statements of the Company as at December 31, 2023 and December 31, 2022 and for the years then ended, together with management's Report on Internal Control over Financial Reporting and the report of the independent registered public accounting firm thereon, (the "Consolidated Annual Financial Statements") are filed as Exhibit 99.2 to this Annual Report, and are incorporated by reference herein.

MANAGEMENT'S DISCUSSION AND ANALYSIS

The Company's Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2023 is filed as Exhibit 99.3 to this Annual Report, and is incorporated by reference herein.

TAX MATTERS

Purchasing, holding, or disposing of the Company's securities may have tax consequences under the laws of the United States and Canada that are not described in this Annual Report.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At the end of the period covered by this Annual Report for the fiscal year ended December 31, 2023, an evaluation was carried out under the supervision of, and with the participation of, the Company's management, including its Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act). Based upon that evaluation, the Company's CEO and CFO have concluded that the disclosure controls and procedures were effective to give reasonable assurance that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and (ii) accumulated and communicated to management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management's Annual Report on Internal Control over Financial Reporting

The required disclosure is included in the section entitled "Management's Report on Internal Control Over Financial Reporting" in the Company's Consolidated Annual Financial Statements for the fiscal year ended December 31, 2023 and the section entitled “Disclosure and Internal Control Procedures” in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2023, filed as part of this Annual Report.

Attestation Report of the Registered Public Accounting Firm

The attestation report of the Company's independent registered public accounting firm, PricewaterhouseCoopers LLP ("PwC") is included in the Consolidated Annual Financial Statements, filed as Exhibit 99.2 to this Annual Report and incorporated by reference herein.

Changes in Internal Control over Financial Reporting

There have been no significant changes in the Company's internal control over financial reporting during 2023, that materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

CORPORATE GOVERNANCE

The Company's Board of Directors (the "Board of Directors" or "Board") is responsible for the Company's corporate governance and has a separately designated standing Corporate Governance and Nominating Committee, Compensation Committee, Safety, Environmental and Social Sustainability Committee and an Audit Committee. The Board of Directors has determined that all the members of the Corporate Governance and Nominating Committee, Compensation Committee, Safety, Environmental and Social Sustainability Committee and Audit Committee are independent, based on the criteria for independence prescribed by Rule 10A-3 of the Exchange Act and Sections 803A and 805(c) of the NYSE American LLC Company Guide, as applicable.

Corporate Governance and Nominating Committee

The Corporate Governance and Nominating Committee is responsible for, among other things:

•developing, recommending to the Board and maintaining corporate governance principles applicable to the Company;

•identifying and recommending qualified individuals for nomination to the Board of Directors;

•arranging for evaluations of the Board;

•providing such assistance as the Chair of the Board, if independent, or alternatively the lead director of the Board, may require; and

•addressing any related matters required by applicable law.

The Company's Corporate Governance and Nominating Committee is comprised of Laura Diaz (Chair), Anna Ladd-Kruger, Graham C. Thody and John H Wright, all of whom are independent based on the criteria for independence prescribed by Section 803A of the NYSE American LLC Company Guide.

Compensation Committee

Compensation of the Company's CEO and all other executive officers is recommended to the Board of Directors for determination by the Compensation Committee. The Company's Compensation Committee is comprised of Hannes

Portmann (Chair), Ani Markova and John H. Wright, all of whom are independent based on the criteria for independence prescribed by Sections 803A and 805(c) of the NYSE American LLC Company Guide.

Safety, Environmental and Social Sustainability Committee

The Safety, Environmental and Social Sustainability Committee is charged with the oversight of corporate performance relating to safety, environmental and social sustainability matters. The Committee's purpose is to assess the effectiveness of the Company's policies and practices, monitor compliance with laws, rules and regulations, assess potential operational, human resource and financial risks and opportunities that stem from environmental, geopolitical or social factors. The committee is comprised of Ani Markova (Chair), Pierre Beaudoin, Laura Diaz, and Hannes Portmann, all of whom, except Pierre Beaudoin, are independent based on the criteria for independence prescribed by Section 803A of the NYSE American LLC Company Guide.

Audit Committee

The Board of Directors has a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act and Section 803B of the NYSE American LLC Company Guide. The Company's Audit Committee is comprised of Anna Ladd-Kruger (Chair), Hannes Portmann, Ani Markova and Graham C. Thody, all of whom, in the opinion of the Company's Board of Directors, are independent (as determined under Rule 10A-3 of the Exchange Act and Section 803A of the NYSE American LLC Company Guide). All four members of the Audit Committee are financially literate, meaning they are able to read and understand the Company's financial statements and to understand the breadth and level of complexity of the issues that can reasonably be expected to be raised by the Company's financial statements. The Audit Committee meets the composition requirements set forth by Section 803B(2) of the NYSE American LLC Company Guide.

The members of the Audit Committee are appointed by the Company's Board of Directors annually. Each member of the Audit Committee will remain on the committee until the next annual meeting of shareholders after his or her appointment, unless otherwise removed or replaced by the Board of Directors at any time.

The full text of the Audit Committee Charter is available on the Company's website at www.silvercrestmetals.com (not incorporated by reference) and is attached as Appendix B to the AIF, which is filed as Exhibit 99.1 to this Annual Report.

Audit Committee Financial Expert

The Board of Directors has determined that each of Anna Ladd-Kruger, Ani Markova, Hannes Portmann and Graham C. Thody (i) is financially sophisticated within the meaning of Rule 803B of the NYSE American LLC Company Guide; (ii) is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K; and (iii) is independent (as determined under Exchange Act Rule 10A-3 and Section 803A of the NYSE American LLC Company Guide).

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES PROVIDED BY

INDEPENDENT AUDITOR

The Audit Committee pre-approves all audit services to be provided to the Company by its independent auditors. Non-audit services that are prohibited to be provided to the Company by its independent auditors may not be pre-approved. In addition, prior to the granting of any pre-approval, the Audit Committee must be satisfied that the performance of the services in question will not compromise the independence of the independent auditors. All non-audit services performed by the Company's auditor for the fiscal year ended December 31, 2023 were pre-approved by the Audit Committee of the Company. No non-audit services were approved pursuant to the de minimis exemption to the pre-approval requirement.

PRINCIPAL ACCOUNTANT FEES AND SERVICES - INDEPENDENT AUDITOR

PricewaterhouseCoopers LLP (PCAOB ID# 271), located in Vancouver, British Columbia, acted as the Company's independent registered public accounting firm for the fiscal years ended December 31, 2023 and December 31, 2022. For a description of the total amount billed to the Company by our independent registered public accounting firm for services performed in the last two financial years by category of service (audit fees, audit related fees, tax fees and all other fees), see "Audit Committee Disclosure - External Auditor Service Fees (By Category)" in the AIF, which is filed as Exhibit 99.1 to this Annual Report and incorporated by reference herein.

OFF-BALANCE SHEET ARRANGEMENTS

The Company does not have any off-balance sheet arrangements.

CODE OF ETHICS

The Company has adopted a Code of Business Conduct and Ethics that applies to directors, officers and employees of, and consultants and contractors to, the Company (the "Code"). The Code has been posted on the Company's website at www.silvercrestmetals.com. The Code meets the requirements for a "code of ethics" within the meaning of that term in General Instruction 9(b) of the Form 40-F.

All amendments or waivers of the Code with respect to any of the employees, officers or directors covered by it will be promptly disclosed as required by applicable securities rules and regulations. During the fiscal year ended December 31, 2023, the Company did not substantively amend, waive or implicitly waive any provision of the Code with respect to any of the Company's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

NOTICES PURSUANT TO REGULATION BTR

There were no notices required by Rule 104 of Regulation BTR that the Company sent during the year ended December 31, 2023 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

MINE SAFETY DISCLOSURE

We do not operate any mines in the United States and have no mine safety incidents to report for the year ended December 31, 2023.

NYSE AMERICAN STATEMENT OF GOVERNANCE DIFFERENCES

The Company's common shares are listed on the NYSE American. Section 110 of the NYSE American Company Guide permits the NYSE American to consider the laws, customs and practices of foreign issuers in relaxing certain NYSE American listing criteria, and to grant exemptions from NYSE American listing criteria based on these considerations. A company seeking relief under these provisions is required to provide written certification from independent local counsel that the non-complying practice is not prohibited by home country law. A description of the significant ways in which the Company's governance practices differ from those followed by domestic companies pursuant to NYSE American standards is as follows:

Shareholder Meeting Quorum Requirement: The NYSE American minimum quorum requirement for a shareholder meeting is one-third of the outstanding shares of common stock. In addition, a company listed on the NYSE American is required to state its quorum requirement in its bylaws. The Company's quorum requirement as set forth in its Articles are two shareholders whether present by proxy, holding in the aggregate at least 5% of the issued shares entitled to be voted at the meeting.

Shareholder Approval for Equity Compensation Plans. The NYSE American Company Guide requires shareholder approval in connection with the establishment of an equity compensation arrangement pursuant to which options or stock may be acquired by officers, directors, employees, or consultants of a company. The Company follows the shareholder approval requirements of the Toronto Stock Exchange in connection with the establishment of equity compensation arrangements pursuant to which its officers, directors, employees, or consultants may acquire options or common shares.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION

Not applicable.

UNDERTAKING

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by SEC staff, and to furnish promptly, when requested to do so by SEC staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

CONSENT TO SERVICE OF PROCESS

The Company has previously filed with the SEC a written consent to service of process on Form F-X. Any change to the name or address of the Company’s agent for service shall be communicated promptly to the SEC by amendment to the Form F-X referencing the file number of the Company.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all the requirements for filing on Form 40-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.


						SILVERCREST METALS INC.

			By:			/s/ Anne Yong
						Name: Anne Yong
						Title: Chief Financial Officer

Date: March 11, 2024

EXHIBIT INDEX

The following documents are being filed with the SEC as Exhibits to this Annual Report:


Exhibit			Description
97.1			Incentive Compensation Clawback Policy
99.1			Annual Information Form dated March 11 , 2024
99.2			Audited Annual Consolidated Financial Statements and notes thereto as at and for the years ended December 31, 2023 and December 31, 2022, together with Management's Report on Internal Control over Financial Reporting and the report of the Independent Registered Public Accounting Firm
99.3			Management's Discussion and Analysis for the year ended December 31, 2023
99.4			Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act
99.5			Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act
99.6			Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.7			Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.8			Consent of PricewaterhouseCoopers LLP
99.9			Consent of BBE Group Canada
99.10			Consent of Barry
99.1 1			Consent of Burga
99.12			Consent of Entech Mining Ltd.
99.13			Consent of Fier
99.14			Consent of Hydro-Ressources Inc.
99.15			Consent of Knight Piésold Ltd.
99.1 6			Consent of Langlais
99.1 7			Consent of Lee
99.1 8			Consent of Marx
99.1 9			Consent of Murray
99.20			Consent of P&E Mining Consultants Inc.
99.21			Consent of Peacock
99.22			Consent of Preciado
99.23			Consent of Puritch
99.24			Consent of Stone
99.25			Consent of Verr eault
99.26			Consent of W eston
99.2 7			Consent of WSP Canada Inc.
99.2 8			Consent of Wu
101.INS			Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
101.SCH			Inline XBRL Taxonomy Extension Schema Document
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

INCENTIVE COMPENSATION CLAWBACK POLICY

A.PURPOSE

This Incentive Compensation Clawback Policy (the “Policy”) authorizes the Board of Directors of the Company (the “Board”) to recover Excess Compensation (as defined herein) from an Executive Officer (as defined herein) in certain instances. This Policy is designed to comply with Section 10D of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), related rules and the listing standards of NYSE American LLC or any other securities exchange on which the Company’s shares are listed in the future. The guidelines of this Policy are set forth below.

B.DEFINITIONS

1.For the purposes of this Policy, the following terms are defined below:

a.“Excess Compensation” means the difference between the amount or value of any Performance-Based Compensation received by an Executive Officer subsequent to the effective date of the Policy and the amount or value that would have been received in the relevant period(s) as calculated or determined based on the financial statements of the Company as restated in the Financial Restatement (and shall include an entire amount or value of an award or payment where it is determined that no award or payment would have been made based on the financial statements of the Company as restated)(all amounts shall be computed without regard to taxes paid);

b.“Executive Officer” means, for the purposes of this Policy, a current or former employee who is or was identified by the Company as the Company’s president, principal financial officer, principal accounting officer (or if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division, or function (such as sales, administration, or finance), any other officer who performs a policy-making function, or any other person (including any executive officer of the Company’s subsidiaries or affiliates) who performs similar policy-making functions for the Company. “Policy-making function” excludes policy-making functions that are not significant. For the avoidance of doubt, “Executive Officers” will include at least the following Company officers: (a) Chief Executive Officer, (b) Chief Financial Officer, (c) each of the three most highly compensated executive officers, or the three most highly compensated individuals acting in a similar capacity, other than the CEO and CFO, as determined in accordance with subsection 1.3(6) of National Instrument 51-102 – Continuous Disclosure Obligations, and (d) each individual who would be a “Executive Officer” under (c) but for the fact that the individual was neither an executive officer of the Company, nor acting in a similar capacity, at the end of the applicable financial year.

The Policy covers Incentive Compensation received by a person after beginning service as an Executive Officer and who served as an Executive Officer at any time during the performance period for that Incentive Compensation.

c.“Financial Restatement” means an accounting restatement of previously issued financial statements of the Company due to the Company’s material non-compliance with any financial reporting requirements under U.S. federal securities laws (including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period); an Financial Restatement does not include situations in which financial statement changes did not result from material non-compliance with financial reporting requirements, such as, but not limited to retrospective: (i) application of a change in accounting principles; (ii) revision to reportable segment information due to a change in the structure of the Company’s internal organization; (iii) reclassification due to a discontinued operation; (iv) application of a change in reporting entity, such as from a reorganization of entities under common control; (v) adjustment to provision amounts in connection with a prior business combination; and (vi) revision for stock splits, stock dividends, reverse stock splits or other changes in capital structure; and

d.“Performance-Based Compensation” includes any compensation that is granted, earned or vested based in whole or in part on the attainment of financial reporting measures that are determined and presented in accordance with the accounting principles used in preparing the Company’s financial statements (including non-GAAP financial measures) and any measures derived wholly or in part from such financial measures (a “Financial Reporting Measure”) and includes compensation granted, earned or vested in any form, including cash or equity-based. For Performance-Based Compensation based on Financial Reporting Measures such as stock price or total shareholder return, where the amount of excess compensation is not subject to mathematical recalculation directly from the information in an Financial Restatement, the Board will calculate the amount to be reimbursed based on a reasonable estimate of the effect of the Accounting Restatement on such financial reporting measure upon which the Performance-Based Compensation was received. The Company will maintain documentation of that reasonable estimate and will provide such documentation to the applicable national securities exchange.

Performance-based Compensation does not include awards which are granted, earned and vested without regard to attainment of Financial Reporting Measures, such as time-vesting awards, discretionary awards and awards based wholly on subjective standards, strategic measures or operational measures.

C.RECOVERY PROCESS AND MANNER OF REPAYMENT

1.Where there is a Financial Restatement, the Board will:

a.recover reasonably promptly any Excess Compensation received by any Executive Officer during the three completed fiscal years immediately preceding the date on which the Company is required to prepare an Financial Restatement, including transition periods resulting from a change in the Company’s fiscal year as provided in Rule 10D-1 of the Exchange Act. Performance-based Compensation is deemed “received” in the Company’s fiscal period during which the Financial Reporting Measure specified in the Performance-based Compensation award is attained, even if the payment or grant of the Performance-based Compensation occurs after the end of that period. The determination of the time when the Company is “required” to prepare an Accounting Restatement shall be made in accordance with applicable United States Securities and Exchange Commission (the “SEC”) and national securities exchange rules and regulations.

b.The Board will determine, in its sole discretion, the method(s) for recovering Excess Compensation hereunder and the methods of recovery may include, without limitation, requiring the Executive Officer to return or repay to the Company, or reimburse the Company for all or part of the Performance-based Compensation paid to the Executive Officer by the Company; forfeiture of any Performance-based Compensation contribution made under the Company’s deferred compensation plan; offsetting the recovered amount from any compensation or Performance-based Compensation that the Executive Officer may earn or be awarded in the future; some combination of the foregoing; or taking any other remedial and recovery action permitted by law, as determined by the Board.

2.Subject to any requirements set out in the Sarbanes-Oxley Act of 2002, any Excess Compensation recovered under this Policy shall be limited to Performance-Based Compensation awards received on or after the Effective Date of this Policy. Performance-based Compensation received by Executive Officers prior to the Effective Date hereof remains subject to the Company’s prior Incentive Compensation Clawback Policy dated February 25, 2021.

3.In determining the method(s) of recovery of Excess Compensation in the event of a Financial Restatement under the Policy, the Board shall have regard to, in its sole discretion and in light of the circumstances, the best interests of the Company. In making such determination, the Board may take into account any considerations it deems appropriate, including, without limitation:

a.the applicable governing laws;

b.the likelihood of success of recovering such Excess Compensation;

c.the likelihood that such method may prejudice the interests of the Company;

d.the passage of time since the occurrence of any gross negligence, fraud or willful misconduct;

e.the existence of any legal proceedings against the Executive Officer related to the any gross negligence, fraud or willful misconduct; and

f.the participation of the Executive Officer in the circumstances relating to the Financial Restatement, including his or her involvement in any gross negligence, fraud or willful misconduct.

4.Before the Board makes a final determination as to whether a Financial Restatement is required and any cancellation, repayment or reimbursement of Excess Compensation is payable under the Policy from an Executive Officer, the Board shall provide the Executive Officer with written notice thereof and the opportunity to be heard at a duly held meeting of the Board, which may take place either in person or by way of a conference or video call, as determined by the Board.

5.If the Board makes a final determination that a Financial Restatement is required and a repayment and/or reimbursement of Excess Compensation is payable under the Policy, the Board shall reasonably promptly make a written demand for repayment and/or reimbursement from the Executive Officer, and in the event that the Executive Officer does not, within a reasonably promptly period thereafter, tender repayment and/or reimbursement in response to such demand, the Board shall be entitled to pursue such other actions or remedies, including, without limitation, legal recourse against the Executive Officer to obtain such repayment and/or reimbursement of Excess Compensation under this Policy, as applicable.

6.To the extent practicable and as permitted by all applicable laws, including, without limitation, securities legislation and stock exchange rules, all investigations and related findings under this Policy shall be conducted, undertaken and treated in a confidential manner.

D.NO INDEMNIFICATION OR ADVANCE

Subject to applicable law, the Company shall not indemnify, including by paying or reimbursing for premiums for any insurance policy covering any potential losses, any Executive Officers against the loss of any Excess Compensation, nor shall the Company advance any costs or expenses to any Executive Officers in connection with any action to recover Excess Compensation

E.IMPRACTICALITY

The Company shall recover any Excess Compensation in accordance with this Policy, except to the extent that certain conditions are met and the Board has determined that such recovery would be impracticable, all in accordance with Rule 10D-1 of the Exchange Act and the rules or standards of the NYSE American or any other securities exchange on which the Company’s shares are listed in the future.

F.CHANGES TO THIS POLICY

The Board reserves the right, at its absolute discretion, to change this Policy from time to time as it considers necessary and shall amend this Policy as it deems necessary to reflect changes in regulations adopted by the SEC under Section 10D of the Exchange Act and to comply with any rules or standards adopted by NYSE American LLC or any other securities exchange on which the Company’s shares are listed in the future.

Board Approval Date: November 8, 2023

Effective Date: October 2, 2023

This Policy applies to Performance-Based Compensation received by Executive Officers on or after the Effective Date. Performance-Based Compensation received by Executive Officers prior to the Effective Date remains subject to the Company’s prior Incentive Compensation Clawback Policy dated February 23, 2022. In addition, this Policy is intended to be and will be incorporated as an essential term and condition of any Performance-Based Compensation agreement, plan or program that the Company establishes or maintains on or after the Effective Date.

Due for review: November 8, 2024

ACKNOWLEDGMENT

I acknowledge that I have read and considered the SilverCrest Metals Inc. Incentive Compensation Clawback Policy (the “Policy”) and agree to conduct myself in accordance with the Policy.

By:

Date: __________________

Signature

Print Name

Annual Information Form

FOR THE YEAR ENDED DECEMBER 31, 2023

FORWARD LOOKING STATEMENTS

This Annual Information Form of SilverCrest Metals Inc. (the "Company" or "SilverCrest") contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including gold and silver production and planned work programs. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; the impact of the COVID-19 pandemic on operations, future financings, the Company's share price and on the timing and completion of exploration programs, technical reports and studies; mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting and the development and advancement of the Company's ESG (as defined below) strategy.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuations in the price of gold and silver; the impact of the Ukraine-Russia conflict on supply chains and pricing and availability of commodities; timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company's share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of mineral resource estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; fluctuations in the foreign exchange rate (particularly the Mexican peso, Canadian dollar and United States dollar); risks associated with taxation in multiple jurisdictions; uncertainty in the Company's ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; risks associated with the Credit Facility (defined below); uncertainty as to whether the Company's exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company's expectations; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.

The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to update or revise any forward-looking statements included in this Annual Information Form if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.

CAUTIONARY NOTE TO U.S. INVESTORS

This Annual Information Form includes Mineral Resource and Reserve classification terms that comply with reporting standards in Canada and the Mineral Resource and Reserve estimates are made in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to domestic United States reporting companies. Consequently, Mineral Resource and Reserve information included in this Annual Information Form may not be comparable to similar information that would generally be disclosed by United States domestic reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with US standards.

TABLE OF CONTENTS


1.	GENERAL		4
	1.1	Date of Information	4
	1.2	Conversion Table	4
	1.3	Technical Abbreviations	4
	1.4	Currency	4
	1.5	Qualified Persons	4
2.	CORPORATE STRUCTURE		5
	2.1	Name, Address and Incorporation	5
	2.2	Intercorporate Relationships	5
3.	GENERAL DEVELOPMENT OF THE BUSINESS		5
	3.1	Overview	5
	3.2	Three Year History	5
	3.3	Significant Acquisitions	8
4.	DESCRIPTION OF BUSINESS		8
	4.1	General	8
	4.2	Risk Factors	10
	4.3	Environmental and Social Sustainability	22
	4.4	Mineral Projects	26
5.	DIVIDENDS		27
	5.1	Dividends	27
6.	CAPITAL STRUCTURE		28
	6.1	General Description of Capital Structure	28
7.	MARKET FOR SECURITIES		28
	7.1	Trading Price and Volume	28
8.	ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTION ON TRANSFER		29
	8.1	Escrowed Securities	29
9.	DIRECTORS AND OFFICERS		29
	9.1	Name, Occupation and Security Holding	29
	9.2	Cease Trade Orders, Bankruptcies, Penalties or Sanctions	32
	9.3	Conflicts of Interest	33
10.	AUDIT COMMITTEE DISCLOSURE		33
11.	LEGAL PROCEEDINGS AND REGULATORY ACTIONS		35
	11.1	Legal Proceedings	35
	11.2	Regulatory Actions	35
12.	INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS		36
	12.1	Interest of Management and Others in Material Transactions	36
13.	TRANSFER AGENT AND REGISTRARS		36
	13.1	Transfer Agent and Registrars	36
14.	MATERIAL CONTRACTS		36
	14.1	Material Contracts	36
15.	INTERESTS OF EXPERTS		36
	15.1	Technical Report Authors	36
	15.2	Auditors	36
16.	ADDITIONAL INFORMATION		37


1. General

1.1Date of Information

All information in this Annual Information Form ("AIF") is as of March 11, 2024, unless otherwise indicated, and the information contained herein is current as of such date, unless otherwise stated.

1.2Conversion Table

All data and information are presented in metric units. In this Annual Information Form, the following conversion factors were used:

2.47 acres

1 hectare

0.4047 hectares

1 acre

3.28 feet

1 metre

0.3048 metres

1 foot

0.62 miles

1 kilometre

1.609 kilometres

1 mile

0.032 ounces (troy)

1 gram

31.103 grams

1 ounce (troy)

1.102 tons (short)

1 tonne

0.907 tonnes

1 ton

0.029 ounces/ton

1 gram/tonne

34.286 grams/tonne

1 ounce/ton

1 ppm

1 gram/tonne

1 ounce/ton

34.286 ppm

10,000 ppm

1.3Technical Abbreviations


Ag	silver	m	metres
AgEq	silver equivalent(1)	NI 43-101	National Instrument 43-101 Standards of Disclosure for Mineral Projects
Au	gold	NSR	net smelter returns
cm	centimetres	oz	ounce(s)
g	grams	Pb	Lead
gpt	grams per tonne	RC	reverse circulation
km	kilometres	t	Tonne
koz	kilo-ounce(s)	tpd	tonnes per day
kt	kilotonne

(1)AgEq ratio is based on the gold to silver ratio of 79.5:1 from the Technical Report (as defined under Section 4.4.1 - Las Chispas Operation) and is calculated using $1,650/oz Au and $21.00/oz Ag, with average metallurgical recoveries of 97.9% Au and 96.7 Ag, and 99.9% payable for both Au and Ag.

1.4Currency

All dollar ($) amounts stated in this Annual Information Form refer to United States dollars ($ or US$) unless Canadian dollars (C$) are indicated. On March 8, 2024, the daily average exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was US$1.00 = C$1.3471 (C$1.00 = US$0.7423). On December 29, 2023, the daily average exchange rate for the United States dollar in terms of Canadian dollars, as quoted by the Bank of Canada, was US$1.00 = C$1.3226 (C$1.00 = US$0.7561).

1.5Qualified Persons

N. Eric Fier, CPG, P. Eng, is a Qualified Person within the meaning of NI 43-101, and has reviewed and approved the scientific and technical information relating to the Company's mineral properties disclosed in this Annual Information Form. Mr. Fier is the Chief Executive Officer and a director of SilverCrest. Other qualified persons are responsible for the technical and scientific information contained in the technical reports incorporated by reference in this Annual Information Form. See "Interests of Experts - Names of Experts".


2. Corporate Structure

2.1Name, Address and Incorporation

SilverCrest Metals Inc. was incorporated under the name "1040669 B.C. Ltd." under the Business Corporations Act (British Columbia) ("BCBCA") on June 23, 2015. The Notice of Articles of the Company was subsequently amended on August 11, 2015, to change the name of the Company to "SilverCrest Metals Inc.". Upon the Company's incorporation on June 23, 2015, the Company was a wholly owned subsidiary of SilverCrest Mines Inc. ("SilverCrest Mines"). The Company was established as part of an arrangement (the "Arrangement") completed under the BCBCA on October 1, 2015, pursuant to which First Majestic Silver Corp. ("First Majestic") acquired SilverCrest Mines after the Company was spun off from SilverCrest Mines to the former shareholders of SilverCrest Mines. The Arrangement resulted in the Company holding title to various exploration properties located in Mexico that were formerly held by SilverCrest Mines. The common shares of the Company (the "Common Shares") commenced trading on the TSX Venture Exchange ("TSX-V") on October 9, 2015 and were listed on the NYSE American ("NYSE") on August 21, 2018. The Common Shares commenced trading on the Toronto Stock Exchange ("TSX") on August 29, 2019, and were concurrently delisted from the TSX-V.

The head office of the Company is located at Suite 501, 570 Granville Street, Vancouver, British Columbia, V6C 3P1. The registered office of the Company is located at 19th Floor, 885 West Georgia Street, Vancouver, British Columbia, V6C 3H4.

2.2Intercorporate Relationships


Subsidiary	Location	Ownership	Principal activity
NorCrest Metals Inc. ("NorCrest")	Canada	100%	Holding Company
Compañía Minera La Llamarada, S.A. de C.V. ("La Llamarada")	Mexico	100%	Exploration and production


3. General Development of the Business

3.1Overview

SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC, with an ongoing initiative to increase its silver-gold assets by expanding current resources and reserves, acquiring, discovering, developing and operating high value precious metal projects in the Americas. The Company's principal focus is operating its Las Chispas silver and gold operation ("Las Chispas" or the "Las Chispas Operation" or the "Las Chispas Mine"), consisting of 28 concessions of an estimated 1,401 hectares. The operation is located approximately 180 km northeast of Hermosillo, Sonora, Mexico. Las Chispas is in a prolific mining area with nearby precious and base metal producers.

The Company has a portfolio of three other mineral exploration properties in Sonora, Mexico, comprised of El Picacho, Cruz de Mayo, and Angel de Plata properties.

The Company's Common Shares are currently traded on the TSX under the symbol "SIL" and on the NYSE under the symbol "SILV".

3.2Three Year History

2021

Las Chispas

During Q1, 2021, the Company announced positive results from a technical report titled "NI-43-101 Technical Report & Feasibility Study on the Las Chispas Project" dated February 2, 2021, with an effective date January 4, 2021 (the "2021 Feasibility Study") and commenced project construction. At the end of 2021, overall construction progress at Las Chispas was ahead of schedule and was 86.2% complete compared to a scheduled completion of 79.3%. During 2021, the Company committed 75.2% ($103.6 million) of the $137.7 million 2021 Feasibility Study capital cost estimate. Of the remaining capital to be incurred in 2022, 20.7% was related to the Ausenco fixed price engineering, procurement and construction (“EPC”) contract for process plant construction and 14.7% was unused contingency.

At the end of 2021, SilverCrest completed a total of 17.5 km of underground development since 2019. Approximately 1.8 km of additional development occurred in 2021 beyond the 2021 Feasibility Study life of mine ("LOM") plan. During 2021, the Company stockpiled an estimated 33 kt of mineralized material. The total stockpile at 2021 year end (excluding historic stockpiles) was estimated to be 85 kt with grades in-line with the 2021 Feasibility Study Mineral Reserves.

During H1, 2021, the Company completed construction of a new 513 single-occupancy room camp. This fully confined camp, along with other strict COVID-19 protocols, allowed SilverCrest to continue its exploration, underground development, and construction with the objective of limiting potential exposure of personnel and nearby communities to the COVID-19 virus. SilverCrest's strict COVID-19 protocols, including its confined camp, resulted in no delays due to COVID-19 or any other reason in 2021 and also resulted in additional benefits in productivity.

During 2021, the Company completed approximately 114,000 metres of drilling, which predominantly focused on infill drilling of inferred resources to support conversion to indicated resources for potential conversion to mineral reserves.

Other Properties

During 2021, the Company completed approximately 80,700 metres of drilling at its El Picacho property ("Picacho"), and incurred approximately $10.0 million in total exploration expenditures. Please refer to the Company's news release dated February 24, 2021 for the initial drill results for Picacho.

Financings

On February 22, 2021, the Company completed a prospectus offering of 15,007,500 Common Shares at a price of $9.20 per common share for gross proceeds of $138.1 million ($131.4 million net proceeds). This bought deal financing offering was completed by way of a prospectus supplement to the base shelf prospectus filed on June 9, 2020.

On December 31, 2020, NorCrest (as borrower), and the Company, La Llamarada and other subsidiaries (as guarantors), and RK Mine Finance Bermuda 4 Limited (as lender) entered into a credit agreement (the "2020 Credit Facility") in the amount of $120 million. The Company made two drawdowns totaling $60.0 million of the $120.0 million 2020 Credit Facility during 2021.

2022

Las Chispas

In late May 2022, the Company completed construction at Las Chispas on time and under budget and commenced commissioning. During commissioning, the Las Chispas processing plant has performed in-line or ahead of the 2021 Feasibility Study expectations on operating metrics. The Company declared commercial production, effective November 1, 2022.

From the start of commissioning in June 2022 to the end of 2022, the Company processed approximately 187,600 tonnes of ore1 at a grade of 3.05 gpt Au and 312 gpt Ag, or 555 gpt AgEq2. Metallurgical recoveries in 2022 were 96.5% for Au and 92.5% for Ag, or 94.2% AgEq2.

In 2022, recovered metal totaled 17,770 oz Au and 1.74 million oz Ag, or 3.16 million oz AgEq2 and the Company sold approximately 11,400 ounces of gold for $19.7 million and 1.12 million ounces of silver for $23.8 million, or 2.03 million oz AgEq2 for total revenue of $43.5 million.

In 2022, an additional 8.0 km of underground development was completed at the Las Chispas Mine. The average mining rate for Q4, 2022 was 700 tpd, in line with the Company's revised guidance of 600 to 700 tpd (see news release dated September 14, 2022).

A total of an estimated 201 kt of ore were mined from development and stoping activities in 2022, below the 2021 Feasibility Study projection of an estimated 214 kt. The variance was a result of lower productivity in resue mining stopes due to safety concerns and narrower vein widths in some areas. Long hole mining has progressed well and has achieved production and dilution rates as set out in the 2021 Feasibility Study.

At the end of 2022, total ore stockpiles (including historic stockpiles) were estimated at 261 kt. Stockpiles built prior to the construction decision being made at the end of 2021 were previously expensed (as per the Company’s exploration and evaluation policy) and, as a result, the stockpiles carry a lower carried cost. It is expected that stockpiles will continue to represent a notable component of process plant feed through 2024, which will support financial de-risking.

1The Company defines ore as mineralized material or feed material with economic value to be processed.

2 2022 AgEq figures were originally presented using a Ag:Au ratio of 86.9:1 but have been recast for consistency with the ratio of 79.51:1 being applied to current year figures based on the Technical Report as defined under Section 4.4.1 - Las Chispas Operation.

Other Properties

During 2022, the Company completed approximately 26,200 metres of drilling at Picacho and incurred approximately $5.4 million in total exploration expenditures. Picacho exploration focused on exploration and infill drilling. Please refer to the Company's news release dated April 13, 2022 for drill results for Picacho.

Financings

On November 29, 2022, the Company refinanced its $120 million 2020 Credit Facility, of which only $90 million had been drawn, with a new $120 million credit facility (the "Credit Facility") through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal. The Credit Facility includes a $50 million term facility ("Term Facility") and a $70 million revolving facility ("Revolving Facility"). On closing of the Credit Facility, the Company fully drew the $50 million Term Facility and used $40 million of its cash balance to repay the 2020 Credit Facility, which was with an affiliate of RK Mine Finance. The Revolving Facility of $70 million will be available to the Company until November 27, 2026 for general corporate purposes and working capital. On closing of the Credit Facility and repayment of the 2020 Credit Facility, the Company had a cash balance of approximately $50 million, total debt of $50 million and undrawn Revolving Facility of $70 million. The Term Facility has a 3-year term with a maturity date of November 28, 2025. The Revolving Facility has a 4-year term with a maturity date of November 27, 2026. Both the Term Facility and Revolving Facility bear interest at a rate based initially on an adjusted Term secured overnight financing rate as administered by the Federal Reserve Bank of New York ("SOFR"), plus an applicable margin ranging from 2.50% to 3.75% which Term SOFR margin had been set at 3.00% until June 30, 2023. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.56% to 0.84% per annum. All debts under the Credit Facility are guaranteed by the Company and its subsidiaries and secured by the assets of the Company and NorCrest and pledges of the securities of the Company's subsidiaries. The Credit Facility includes certain covenants that are calculated and reported each fiscal quarter. As at December 31, 2022, the Company was in compliance with all covenants.

2023

Las Chispas

During July 2023, the Company announced the results of the Technical Report (as defined under Section 4.4.1 - Las Chispas Operation) which confirmed strong economics with estimated average annual production of 57,000 oz/year Au and 5.5 million oz/year Ag, or 10.0 million oz/year AgEq, during the first seven full years. Using a 5% discount rate and average gold and silver prices of $1,800/oz and $23.00/oz respectively as the Base Case, Las Chispas generates a post-tax net present value of $549.9 million.

In 2023, the Company completed an additional 13.2 km of horizontal and vertical underground development, compared to 8.0 km in 2022. During 2023, mining rates averaged 824 tpd, in line with the ramp-up estimate of 800 to 900 tpd outlined in the Technical Report.

During 2023, SilverCrest proactively began a selection process to review its underground mining contract. The Company began discussions with several potential underground mine contractors to compete for this contract with the focus on safety, predictability, and cost. Early in Q1, 2024 the selection process and negotiations were finalized and beginning in February 2024, the new mining contractor, a subsidiary of Dumas Contracting Ltd. (“Dumas”) began mobilizing to Las Chispas under a five year service contract covering all underground development and production activities. Dumas is expected to continue mobilizing through Q3, 2024. Both contractors are committed to a smooth transition and hand-off of underground operations. A total of $4.5 million in mobilization charges will be paid over the mobilization period with the expense recognized over the life of the five year contract.

Average daily mill throughput was 1,182 tpd in 2023 and gold and silver processed grades averaged 4.39 gpt Au and 423 gpt Ag, or 771 gpt AgEq.

In 2023, recovered metal totaled 59,700 oz Au and 5.65 million oz Ag, or 10.40 million oz AgEq.

During 2023, the Company sold approximately 58,200 ounces of Au for $113.3 million and 5.62 million ounces of Au for $131.9 million, or 10.25 million oz AgEq for total revenue of $245.1 million.

Exploration

During 2023, the Company completed exploration work at Las Chispas, which is capitalized as growth capital.

During Q4, 2023, 17,947 metres of drilling was completed at Las Chispas, with 42% of the metres focused on infill drilling of Inferred Resources (see Technical Report) for conversion to Indicated Resources and possible conversion to Reserves. The balance of the drilling was focused on new vein targets. In Q4, 2023, the Company spent $5.0 million on exploration at Las Chispas. This drilling program will continue in 2024 with a budget of up to $14 million targeting conversion in H1, 2024 and targeting inferred growth in H2, 2024.

During 2023, 50,233 metres of drilling was completed and $11.4 million was spent on exploration at Las Chispas.

Other Properties

During 2023, the Company had a reduction in its exploration program for Picacho compared to previous year attributed to the Company's focus on Las Chispas operations.

Financings

During 2023, the Company's operations generated cash flow of $158.3 million. In addition to investing $37.1 million in sustaining capital items at Las Chispas, management allocated excess cash for debt repayment, purchase of bullion and purchase of shares of the Company.

Debt

During 2023, the Company voluntarily prepaid the full $50 million Term Facility principal. As of December 31, 2023, the Company was debt free, had not made any draws on the $70 million Revolving Facility, and was in compliance with all covenants.

Bullion

During 2023, the Company purchased gold and silver bullion from a North American based bullion bank to hold as treasury assets in accordance with its liquidity management policies. As of December 31, 2023, the Company had $86.0 million of cash and cash equivalents and $19.2 million of bullion for total treasury assets of $105.2 million.

Other

Share buy back

During 2023, the Company received TSX acceptance of a Normal Course Issuer Bid ("NCIB") permitting the Company to purchase up to 7,361,563 common shares of the Company over a 12-month period beginning on August 14, 2023. Under the NCIB, the Company may purchase up to a maximum of 80,376 common shares on the TSX during any trading day. All common shares, if any, purchased pursuant to the NCIB will be cancelled. During 2023, the Company repurchased and cancelled 1,504,200 common shares at an average price of C$6.44 per share for a total of $7.1 million.

3.3Significant Acquisitions

The Company has not made any significant acquisitions since it became a reporting issuer.


4. Description of Business

4.1General

The Business of the Company

The Company is a Canadian-based precious metals producer with an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas.

The Company's principal focus is operating its Las Chispas Mine, in Sonora, Mexico. 2023 was the Company's first full year of production at Las Chispas. The Company declared commercial production for the Las Chispas Mine on November 1, 2022 after completion of construction and commissioning of the processing plant in late May 2022. For a summary of the activities at Las Chispas, see "General Development of the Business - Three Year History".

Production

The doré bars produced at the Las Chispas Operation have variable gold and silver contents and a variable gold to silver ratio, depending mainly on the corresponding gold and silver grades of the feed material being processed at any given time. Gold and silver doré produced at Las Chispas requires further refining by third-party refiners before being provided to the market as bullion. SilverCrest has engaged with gold and silver buyers and refiners, and made the necessary arrangements to safely transport, refine, and sell the doré. Gold and silver doré can be readily sold on many markets throughout the world and the market price can be ascertained on demand. The market prices of gold and silver are key drivers of the Company's profitability. The prices of gold and silver can fluctuate widely and are affected by a number of macroeconomic factors, including global or regional consumption patterns, the supply of and demand for gold and silver, and political and economic conditions of major gold and silver producing and consuming countries throughout the world.

The Company's revenue from the gold and silver doré produced at Las Chispas during 2023 and 2022 was as follows:


2023	Quantity Sold	Revenue	% of Total Revenue
Gold	58,200 ounces	$113.3 million	46%
Silver	5.62 million ounces	$131.9 million	54%
Total		$245.1 million	100%

2022	Quantity Sold	Revenue	% of Total Revenue
Gold	11,400 ounces	$19.7 million	45%
Silver	1.12 million ounces	$23.8 million	55%
Total		$43.5 million	100%

Specialized Skill and Knowledge

Most aspects of the Company's business require specialized skills and knowledge in geology, exploration, development, construction, mineral production, accounting and capital markets. The Company has a number of executive officers and employees with extensive experience in mining, geology, metallurgy, exploration and development in Mexico and other parts of the Americas and elsewhere, as well as executive officers and employees with relevant accounting and capital markets experience. The Company's business depends upon these skilled and experienced personnel. See "Risk Factors" for further details.

Competitive Conditions

The Company competes with other precious metal mining companies in the acquisition, exploration, financing and development of new properties and projects in North America and the recruitment and retention of qualified personnel that can find, develop and mine such mineral properties. Since inception of the Company in 2015, SilverCrest has successfully grown from being an exploration company, to a development company in 2021 and to an operating company with its producing Las Chispas Mine in 2022. As a relatively new operating company, many other larger mining companies have greater financial resources and economies of scale for, among other things, exploration, development and operational activities, corporate and business development, and the recruitment and retention of qualified personnel. See "Risk Factors" for further details.

Environmental Protection

The Company's operations are subject to environmental regulations promulgated by government agencies from time to time, including requirements for closure and reclamation of mining properties.

In all jurisdictions where the Company operates, specific statutory and regulatory requirements and standards must be met throughout the exploration, development and operations stages of a mining property including, but not limited to, air quality, water quality, fisheries and wildlife protection, solid and hazardous waste management and disposal, noise, land use and reclamation.

The financial and operational effect of environmental protection requirements on the capital expenditures and earnings of the Company's mineral properties are not significantly different than that of similar sized mines in the same jurisdiction of Mexico, and therefore should not have a negative effect on the Company's competitive position in the future.

The Company has a reclamation obligation at its Las Chispas Mine, and the present value of this obligation as at December 31, 2023, was estimated to be $5.9 million.

Employees

At December 31, 2023, the Company and its subsidiaries have an aggregate of approximately 20 full-time personnel based in Canada and an estimated 320 unionized and non-unionized employees based in Sonora, Mexico. All management functions of the Company are performed by the executive officers of the Company, either directly or through their consulting companies.

Foreign Operations

The Company's activities are currently focused on the operations of the Las Chispas Mine located in Sonora, Mexico, which exposes it to various levels of political, economic and other risks and uncertainties associated with operating in a foreign jurisdiction. Operating in Mexico, an emerging economy, has certain risks, including changes to or invalidation of government mining regulations; expropriation or revocation of land or property rights; changes in foreign ownership rights; changes in foreign taxation rates; corruption; uncertain political climate; terrorist actions or war; and lack of a stable economic climate. See "Risk Factors".

Intangibles, Cycles and Changes to Contracts

The Company's business is not materially affected by intangibles such as licences, patents and trademarks, nor is it significantly affected by seasonal changes. Other than as disclosed in this Annual Information Form, the Company is not aware of any aspect of its business which may be affected in the current financial year by renegotiation or termination of contracts.

The Company has entered into various contracts necessary for operating the Las Chispas Mine. These contracts include, but are not limited to, contracts for underground mining, drilling, explosives, power, supply of consumables, catering, security, personnel transportation and refining. These contracts are reviewed and negotiated periodically to ensure they remain competitive and aligned within industry norms for projects in similar settings in Mexico.

4.2Risk Factors

The following factors are those which are the most applicable to the Company. The discussion which follows is not inclusive of all potential risks. Risk management is an ongoing exercise upon which the Company spends a substantial amount of time. While it is not possible to eliminate all of the risks inherent in the mining business, the Company strives to manage these risks to the greatest extent possible, to ensure that its assets are protected.

The Company's production, development and cost estimates may vary and/or not be achieved.

The Technical Report contains estimates of future production, development plans, operating and capital costs and other economic and technical estimates relating to Las Chispas. These estimates are based on a variety of factors and assumptions and there is no assurance that such production, plans, costs or other estimates will be achieved. Actual production, costs and financial returns may vary significantly from the estimates depending on a variety of factors many of which are not within the Company's control. Similarly, there can be no assurance that historical rates of production, grades of ore processed, rates of mineral recoveries or mining cash costs will not experience fluctuations or differ significantly from current levels over the course of the mining operations of the Company. Factors that may impact production cost include, but are not limited to: actual ore mined varying from estimates of grade, tonnage, dilution, and metallurgical and other characteristics; mine failures or equipment failures; industrial accidents; natural phenomena such as inclement weather conditions, floods, droughts, wildfires, rock slides and earthquakes; encountering unusual or unexpected geological conditions; changes in power costs and potential power shortages; exchange rate and commodity price fluctuations; shortages of principal supplies needed for operations; labour shortages or strikes; epidemics, pandemics and public health emergencies, including those related to the recent outbreak of COVID-19; high rates of inflation; civil disobedience and protests; and restrictions (including changes to the taxation regime) or regulations imposed by governmental or regulatory authorities, including permitting and environmental regulations, or other changes in the regulatory environments. Failure to achieve estimates or material increases in costs could have a material adverse impact on the Company's future cash flows, profitability, results of operations and financial condition.

Global market conditions may impact the mining sector.

Global financial markets are experiencing extreme volatility as a result of ongoing geopolitical conflicts, inflation, and recent interest rate increases. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by market conditions. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company's ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company.

Increased levels of volatility and market turmoil could have an adverse impact on the Company's operations and planned growth and the trading price of the securities of the Company may be adversely affected.

The Company's share price is substantially volatile.

The market prices for the securities of mineral exploration and production companies, including the Company's securities, have historically been highly volatile. The market has, from time to time, experienced significant price and volume fluctuations that are unrelated to the operating performance of any particular company. In addition, because of the nature of the Company's business, certain factors, such as announcements and the public's reaction, the Company's operating performance and the performance of competitors and other similar companies, fluctuations in the market prices of resources, government regulations, changes in recommendations by research analysts who track the Company's securities or securities of other companies in the resource sector, general market conditions, announcements relating to litigation, acquisitions or sales, equity financings by the Company, the arrival or departure

of key personnel and the risk factors described in this Annual Information Form can have an adverse impact on the market price of the Company's Common Shares.

In addition, the global stock markets and prices for shares of mineral exploration and production companies have experienced volatility that often has been unrelated to the operating performance of such companies. The market and industry fluctuations may adversely affect the market price of the Company's Common Shares, regardless of the Company's operating performance.

Precious metal prices are subject to wide fluctuations.

The Company's revenue is primarily dependent on the sale of gold and silver and movements in the spot price of gold or silver may have a direct and immediate impact on the Company's income. The profitability of any future precious metal operations in which the Company has an interest will be significantly affected by changes in the market prices of precious metals. Prices for precious metals fluctuate on a daily basis, have historically been subject to wide fluctuations and are affected by numerous factors beyond the control of the Company such as the level of interest rates, the rate of inflation, the rates of investment return in broad financial markets, central bank transactions, world supply of the precious metals, foreign currency exchange rates, international investments, monetary systems, speculative activities, international economic conditions and political developments. The exact effect of these factors cannot be accurately predicted, but the combination of any or all of these factors may result in the Company not receiving adequate returns on invested capital or the Company's investments in its mineral properties not retaining their respective values. Future production from the Company's mining properties is dependent on metal prices that are adequate to make these properties economic. Declining market prices for precious metals could materially adversely affect the Company's future operations and profitability and may require a reassessment of the feasibility of Las Chispas.

Mineral resource and mineral reserve estimates are based on interpretations and assumptions that may not be accurate.

There are numerous uncertainties inherent in estimating quantities of mineral resource and mineral reserve estimates and grades of mineralization, including many factors beyond the Company's control. In making determinations about whether to advance a project to development, mineral resources and grades of mineralization must be considered as estimates only. These estimates are imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling which may prove to be unreliable. Mineral resources, mineral reserves or other mineralization estimates may not be accurate.

Any material changes in mineral resource and mineral reserve estimates and grades of mineralization will affect the economic viability of placing a property into production and a property's return on capital. Estimates of mineral resource and mineral reserve estimates have been determined and valued based on assumed future prices, cut-off grades and operating costs that may prove to be inaccurate. Extended declines in market prices for gold, silver and other precious metals may render portions of the Company's resources uneconomic.

Any material reductions in estimates of mineralization, or of the Company's ability to extract this mineralization, including estimates made in the Technical Report, could have a material adverse effect on the Company's results of operations or financial condition. There can be no assurance that the mineral recovery rates achieved in small scale tests will be duplicated under on-site conditions or in production scale, or that existing known recoveries will continue.

Uncertainties and risks relating to the Technical Report.

The Technical Report includes estimates of future production, development plans, operating costs and capital costs and other economic and technical estimates for Las Chispas. These estimates are based on a variety of factors and assumptions and there is no assurance that such production plans, costs or other estimates will be achieved. Actual production, costs and financial returns may vary significantly from the estimates depending on a variety of factors, some of which are not within the Company's control. Consequently, there is no certainty that the results set out in the Technical Report will be realized.

There is no assurance that the Company's exploration and development programs and properties will result in the discovery, development or production of a commercially viable ore body or yield new reserves to replace or expand current reserves.

The business of exploration for minerals and mining involves a high degree of risk. Only a select few properties that are explored are ultimately developed into producing mines. At this time, apart from the mineral resources and reserves defined at Las Chispas and nearby Cruz de Mayo property, the Company does not have any other properties with mineral resources.

Substantial expenditures are required to discover an orebody, to establish reserves, to identify the appropriate metallurgical processes to extract metal from ore, and to develop the mining and processing facilities and infrastructure. The economics of developing gold, silver and other mineral properties are affected by many factors

including the accuracy of estimating mineral resources and reserves, metal recoveries, capital and operating costs, variations of the tonnage and grade of ore mined, fluctuating mineral markets, the proximity and capacity of milling and smelting facilities, the availability and cost of skilled labour, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. The Company is also subject to the risks associated with establishing mining operations including the potential for labour unrest, potential increases in cost structures due to changes in the cost of consumables, and construction and development costs exceeding the Company's forecasted costs. Development projects are also subject to the successful completion of economic evaluations or feasibility studies, issuance of necessary governmental permits and availability of adequate financing. Depending on the prices of gold, silver or other minerals produced, the Company may determine that it is impractical to commence or continue commercial production.

Mining operations involve hazards and risks.

Mining operations generally involve a high degree of risk, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. These risks include, but are not limited to, the following: environmental hazards and catastrophes, industrial accidents and explosions, third-party accidents, unusual or unexpected geological structures or formations, inaccurate mineral modelling, metallurgical and other processing problems, failure of engineered structures, remote locations and inadequate infrastructure, equipment failure, changes in the costs of consumables, power outages, fires, labour shortages and disruptions (including due to public health issues or strikes), sabotage, floods, cave-ins, land-slides, acts of God, periodic interruptions due to inclement or hazardous weather conditions, earthquakes, war, rebellion, organized crime, revolution, delays in transportation, restrictions of courts and/or government authorities, other restrictive matters beyond the reasonable control of the Company, and the inability to obtain suitable or adequate machinery, equipment or labour and other risks involved in mineral property exploration and development.

Operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration and development of precious and base metals, any of which could result in work stoppages, delayed production and resultant losses, asset write downs, monetary losses, damage to or destruction of mine and other producing facilities, damage to life and property, environmental damage and possible legal liability for any or all damages. The Company may become subject to liability for pollution or hazards against which it cannot insure or against which it may elect not to insure. Any compensation for such liabilities may have a material, adverse effect on the Company's financial position.

The Company's property, business interruption, and liability insurance may not provide sufficient coverage for losses related to these or other hazards. Insurance against certain risks, including certain liabilities for environmental pollution, may not be available to the Company or to other companies within the industry at reasonable terms or at all. In addition, the Company's insurance coverage may not continue to be available at economically feasible premiums, or at all. Any such event could have a material adverse effect on the Company's business.

The Company is subject to government regulation and failure to comply could have an adverse effect on the Company's operations.

The Company's operations, exploration and development activities are subject to extensive foreign federal, state and local laws and regulations governing such matters as environmental protection, management and use of toxic substances and explosives, management of natural resources, health, exploration and development of mines, production and post-closure reclamation, safety and labour, mining law reform, price controls, import and export laws, anti-corruption and anti-bribery statutes, archaeological and cultural preservation, taxation, maintenance of claims, tenure, government royalties and expropriation of property. There is no assurance that future changes in such regulation, if any, will not adversely affect the Company's operations.

Such laws and regulations may require the Company to obtain licenses and permits from various governmental entities. The costs associated with compliance with these laws and regulations are substantial and possible future laws and regulations, changes to existing laws and regulations and more stringent enforcement of current laws and regulations by governmental authorities could cause additional expenses, capital expenditures, restrictions on or suspensions of the Company's operations and delays in the development of its properties. Failure to comply with applicable laws and regulations, including licensing and permitting requirements, may result in civil or criminal fines, penalties or enforcement actions, including orders issued by regulatory or judicial authorities enjoining or curtailing operations, requiring corrective measures, requiring the installation of additional equipment, requiring remedial actions or imposing additional local or foreign parties as joint venture partners, any of which could result in significant expenditures or loss of income by the Company.

Moreover, these laws and regulations may allow governmental authorities and private parties to bring lawsuits based upon damages to property and injury to persons resulting from the environmental, health and safety practices of the Company's past and current operations, or possibly even those actions of parties from whom the Company acquired

its mines or properties, and could lead to the imposition of substantial fines, penalties or other civil or criminal sanctions. The Company retains competent and well-trained individuals and consultants in jurisdictions in which it does business; however, even with the application of considerable skill, the Company may inadvertently fail to comply with certain laws. Such events can lead to financial restatements, fines, penalties, and other material negative impacts on the Company.

The Company is subject to assessment by taxation authorities in multiple jurisdictions that arise in the ordinary course of business.

In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. Income tax provisions and income tax filing positions require estimates and interpretations of income tax rules and regulations of the various jurisdictions in which the Company operates and judgments as to their interpretation and application to the Company's specific situation. The Company's business and operations of the business and operations of its subsidiaries is complex, and the Company has, historically, undertaken a number of significant financings, acquisitions and other material transactions. While the Company's management believes that the provision for income tax is appropriate and in accordance with IFRS Accounting Standards and applicable legislation and regulations, tax filing positions are subject to review and adjustment by taxation authorities, which may challenge the Company's interpretation of the applicable tax legislation and regulations. Any review or adjustment may have a material adverse effect on the Company's financial condition.

The introduction of new tax laws, tax reforms, regulations or rules, or changes to, or differing interpretation of, or application of, existing tax laws, regulations or rules in Canada or México or any other countries in which the Company's subsidiaries may be located, or to which shipments of products are made, could result in an increase in the Company's taxes payable, or other governmental charges, interest and penalties, duties or impositions. No assurance can be given that new tax laws, tax reforms, regulations or rules will not be enacted or that existing tax laws, regulations or rules will not be changed, interpreted or applied in a manner which could result in the Company's profits being subject to additional taxation, interest and penalties, or which could otherwise have a material adverse effect on the Company.

The Company may not be successful in obtaining and renewing government permits.

In the ordinary course of business, the Company is required to obtain and renew government permits for the operation and expansion of existing operations or for the development, construction and commencement of new operations. Obtaining or renewing the necessary governmental permits is a complex and time-consuming process involving numerous jurisdictions and possibly involving public hearings and costly undertakings on the Company’s part. The duration and success of the Company’s efforts to obtain and renew permits are contingent upon many variables not within its control, including the interpretation of applicable requirements implemented by the permitting authority. The Company may not be able to obtain or renew permits that are necessary to its operations, or the cost to obtain or renew permits may exceed what the Company believes it can recover from a given property once in production. Any unexpected delays or costs associated with the permitting process, or the expiry, revocation or failure by the Company to comply with the terms of any such permits that it has obtained, could adversely impact the Company’s operations and profitability.

The Company's operations are subject to extensive environmental, health and safety regulations.

The Company's operations are subject to extensive laws and regulations governing the protection of the environment, natural resources and human health. These laws address, among other things, emissions into the air, discharges into water, management of waste, management of hazardous substances, protection of natural resources, antiquities and endangered species, reclamation of lands disturbed by mining operations and employee safety and health. The Company is required to obtain governmental permits and, in some instances, may be required to provide bonding under federal or state air, water quality and mine reclamation rules and permits. Although the Company makes provisions for reclamation costs, it cannot be assured that these provisions will be adequate to discharge the Company's future obligations for these costs. Violations of environmental, health and safety laws may be subject to civil sanctions and, in some cases, criminal sanctions, including the suspension or revocation of permits. While responsible environmental, health and safety stewardship is one of the Company's core values, there can be no assurance that it has been or will be at all times in complete compliance with such laws, regulations and permits, or that the costs of complying with current and future environmental laws and permits will not materially and adversely affect the Company's business, results of operations or financial condition.

Under certain environmental laws, the Company could be held jointly and severally liable for removal or remediation of any hazardous substance contamination at its current, former and future properties, at nearby properties, or at other third-party sites where the Company's wastes may have migrated or been disposed. The Company could also be held liable for damages to natural resources resulting from hazardous substance contamination. Additionally, environmental laws in Mexico require that the Company periodically perform environmental impact assessment studies at the Company's mines. The Company cannot guarantee that these studies will not reveal environmental

impacts that would require the Company to make significant capital outlays or cause material changes or delays in its intended activities, any of which could adversely affect the Company's business.

There has also been increased global attention and the introduction of regulations restricting or prohibiting the use of cyanide and other hazardous substances in mineral processing activities. If legislation restricting or prohibiting the use of cyanide were to be adopted in Mexico, it would have a significant adverse impact on the Company's results of operations and financial condition as there are few, if any, substitutes for cyanide in extracting metals from certain types of ore.

The failure to comply with environmental laws and regulations or liabilities related to hazardous substance contamination could result in project development delays, material financial impacts or other material impacts to the Company's projects and activities, fines, penalties, lawsuits by the government or private parties, or material capital expenditures. Environmental legislation in many countries is evolving and the trend has been towards stricter standards and enforcement, increased fines and penalties for noncompliance, more stringent environmental assessments of proposed projects, and increasing responsibility for companies and their officers, directors and employees. Future changes in these laws or regulations could have a significant adverse impact on some portion of the Company's business, causing the Company to re-evaluate those activities at that time.

Environmental hazards that may have been caused by previous owners or operators may exist on the Company's mineral properties, but are unknown to the Company at present.

Activities of the Company may be impacted by public health crises.

The Company's business could be significantly adversely affected by the outbreak of epidemics or pandemics or other health crises, including any outbreak of additional strains of COVID-19. Global reactions to the spread of COVID‐19 led to, among other things, significant restrictions in many jurisdictions on travel and gatherings of individuals, quarantines, temporary business closures and a general reduction in consumer activity. Such public health crises can adversely impact the Company's operations and result in volatility and disruptions in supply and demand for gold and silver, as well as declining trade and market sentiment, all of which can affect commodity prices, interest rates, share prices and inflation.

The continued spread of COVID‐19 globally and other future public health crises could materially and adversely impact the Company’s business, including without limitation, employee health, workforce availability and productivity, limitations on travel, supply chain disruptions, increased insurance premiums, increased costs and reduced efficiencies, the availability of industry experts and personnel, restrictions on the Company’s exploration and drilling programs and/or the timing to process drill and other metallurgical testing and the slowdown or temporary suspension of operations at some or all of the Company’s properties. Although the Company has the capacity to continue certain administrative functions remotely, many other functions, including mining operations, cannot be conducted remotely.

The Company applies operational and safety procedures in accordance with guidelines outlined in the jurisdictions in which it operates. The impact of any future public health crises on the Company's operations, exploration and development activities cannot be reasonably estimated with a high level of certainty. A local outbreak, the occurrence of new variants or changes in government health orders remains a significant risk.

The Company's operations may be adversely impacted by the effects of climate change and climate change regulation.

A number of governments have introduced or are moving to introduce climate change legislation and treaties at the international, national, state/provincial and local levels. Regulation relating to emission levels (such as carbon taxes) and energy efficiency is becoming more stringent.

Currently, a number of international and national measures to address or limit emissions are in various phases of discussion or implementation in the countries in which the Company operates. These or future measures could require the Company to reduce its direct emissions or energy use or to incur significant costs for emissions permits or taxes or have these costs or taxes passed on by electricity utilities which supply the Company's operations. The cost of compliance with environmental regulation and changes in environmental regulation have the potential to result in increased cost of operations. The Company could also incur significant costs associated with capital equipment, emission monitoring and reporting and other obligations to comply with applicable requirements. If the current regulatory trend continues, this may result in increased costs at some or all of the Company's operations.

As discussed in the Company's Task Force for Climate Related Financial Disclosures report, the Company's operations could also be exposed to a number of physical risks from climate change, such as changes in rainfall rates, reduced water availability, higher temperatures and extreme weather events. Events or conditions such as flooding or inadequate water supplies could disrupt mining and transport operations and mineral processing, could create resource shortages and could damage the Company's property or equipment and increase health and safety risks on the Company's site. Such events or conditions could have other adverse effects on the Company's workforce

and on the communities around the Company's mine, such as an increased risk of food insecurity, water scarcity and prevalence of disease. There can be no assurance that efforts to mitigate the risks of climate change will be effective and that the physical risks of climate change will not have an adverse effect on the Company's operations and profitability.

The Company operates in foreign jurisdictions and is exposed to various levels of political, economic and other risks.

The Company's operations are currently conducted through subsidiaries principally in Mexico and, as such, its operations are exposed to various levels of political, economic and other risks and uncertainties which could result in work stoppages, blockades of the Company's properties and appropriation of assets. Some of the Company's properties are located in areas where Mexican drug cartels operate. These risks and uncertainties vary from region to region and include, but are not limited to, terrorism; hostage taking; local drug gang activities; military repression; expropriation; extreme fluctuations in currency exchange rates; changes in royalty regimes, including the elimination of tax exemptions; underdeveloped industrial and economic infrastructure; unenforceability of judgements; high rates of inflation; labour unrest; the risks of war or civil unrest; renegotiation or nullification of existing concessions, licenses, permits and contracts; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political conditions arising from changes in government and otherwise, currency controls, import and export regulations and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

Although the Company strives to maintain good relations with the local communities in Mexico by providing employment opportunities and social services, local opposition to mine development projects could arise in Mexico, and such opposition could be very disruptive. There can be no assurance that such local opposition will not arise with respect to the Company's foreign operations. If the Company were to experience resistance or unrest in connection with its operations, it could have a material adverse effect on its operations and profitability.

To the extent the Company acquires mineral properties in jurisdictions other than Mexico, it may be subject to similar and additional risks with respect to its operations in those jurisdictions.

The Company's business may be impacted by Ukraine-Russia and Israel-Palestine conflicts.

As the conflicts in Ukraine and Israel-Palestine continue to develop, the Company's business could be materially adversely affected by increased commodity prices and supply-chain disruptions. Oil and gas prices have increased rapidly due to the ongoing conflict and the escalating sanctions threatened or imposed by several nations against Russia and Russian oil and gas exports have added to global uncertainty. In the event that these conflicts escalate and expand to other nations, such a shift in the conflicts could result in a global economic downturn that could adversely affect the Company's business. The Company cannot accurately predict the impact that the ongoing conflicts will have on its financial position or operations.

The mining industry is very competitive.

The Company competes with other exploration and production companies, some of which are better capitalized, have greater financial resources, operational experience and technical capabilities, or are further advanced in their development or are significantly larger and have access to greater mineral resources than the Company, for the acquisition of mineral claims, leases and other mineral interests as well as for the recruitment and retention of qualified employees and other personnel. If the Company is unsuccessful in acquiring additional mineral properties or qualified personnel, it may not be able to grow at the rate it desires, or at all.

The Company's competitors may be able to devote greater resources to the expansion and efficiency of their operations or respond more quickly to new laws and regulations or emerging technologies than the Company. The Company may not be able to compete successfully against current and future competitors, and any failure to do so could have a material adverse effect on the Company's business, financial condition or results of operations.

Replacement of Reserves and Resources

The Company must continually attempt to replace its mineral reserves depleted by production to maintain production levels over the long term. Mineral reserves can be replaced by the development or discovery of additional reserves and/or extension of the life-of-mine at Las Chispas or through acquisition or development of an additional producing mine. Exploration is highly speculative in nature. The Company's exploration projects involve many risks and are frequently unsuccessful. Once a site with mineralization is discovered, it may take several years from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change. Substantial expenditures are required to establish mineral reserves and to construct mining and processing facilities. As a result, there is no assurance that current or future exploration programs will be successful. There is a risk that depletion of the Company's mineral reserves will not be offset by discoveries or acquisitions. If the Company's mineral reserves are not replaced either by the development of additional mineral reserves and/or additions to mineral reserves, there may be an adverse impact on the Company's future cash flows, earnings, results of operations

and financial condition, and this may be compounded by requirements to expend funds for reclamation and decommissioning.

Fluctuations in the price of consumed commodities could adversely impact the Company's operations.

Prices and availability of commodities consumed or used in connection with exploration, development and mining, such as natural gas, diesel, oil and electricity, fluctuate and affect the Company's operations and financial condition. These fluctuations can be unpredictable, can occur over short periods of time and may have a materially adverse impact on the Company's operating costs or the timing and costs of various projects.

Estimates of reclamation and closure costs may vary from the Company's expectations.

Although variable depending on location and the governing authority, land reclamation and mine closure requirements are generally imposed on mining companies in order to minimize long-term effects of land disturbance. Such requirements may include requirements to control dispersion of potentially deleterious effluents, and reasonably re-establish pre-disturbance landforms and vegetation. Over the last several years, such requirements have been changing, with increasing obligations imposed in many jurisdictions.

In order to carry out reclamation and mine closure obligations imposed on the Company in connection with its exploration, potential development and production activities, the Company must allocate financial resources that might otherwise be spent on further exploration and development programs, including providing the appropriate regulatory authorities with reclamation financial assurance. The amount and nature of the financial assurance are dependent upon a number of factors, including the Company's financial condition and reclamation cost estimates. Changes to these amounts, as well as the nature of the collateral to be provided, could significantly increase the Company's costs, making the maintenance and development of existing and new mines less economically feasible. To the extent that the value of the collateral provided to the regulatory authorities is or becomes insufficient to cover the amount of financial assurance the Company is required to post, the Company would be required to replace or supplement the existing security with more expensive forms of security, which might include cash deposits, which would reduce the Company's cash available for operations and financing activities. There can be no guarantee that the Company will be able to maintain or add to the Company's current level of financial assurance. The Company may not have sufficient capital resources to further supplement the Company's existing security.

The actual costs of reclamation and mine closure are uncertain and planned expenditures may differ from the actual expenditures required. Therefore, the amount that the Company is required to spend could be materially higher than current estimates. Any additional amounts required to be spent on reclamation and mine closure may have an adverse effect on the Company's financial position and results of operations and may cause the Company to alter the Company's operations.

Lack or delay of necessary infrastructure could adversely affect the Company's operations and profitability.

Mining, including underground mine infrastructure and mine development, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants, which affect capital and operating costs. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploration, exploitation or development of the Company's projects. If adequate infrastructure is not available in a timely manner, there can be no assurance that the exploitation or development of the Company's projects will be commenced or completed on a timely basis, if at all, or that the resulting operations will achieve the anticipated production volume, or that the construction costs and ongoing operating costs associated with the exploitation and/or development of the Company's projects will not be higher than anticipated. In addition, unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company's operations and profitability.

While the Company believes that it has adequate infrastructure to support current operations, future developments could limit the availability of certain aspects of the infrastructure. The Company could be adversely affected by the need for new infrastructure. There can be no guarantee that the Company will be successful in maintaining adequate infrastructure for its operations which could adversely affect the Company's business, operations and profitability.

Certain rights-of-way ("ROW") have been granted to the Company in respect of power lines that supply power to Las Chispas. While these ROW have not been challenged or contested, there is no guarantee that owners of the property over which the ROW are granted will not contest or challenge these ROW in the future. In the event that these ROW are terminated, the Company's operations at Las Chispas could be adversely affected which may result in production delays and a decrease in profitability.

Future increases in metal prices may lead to renewed increases in demand for exploration, development and construction services and equipment used in mineral exploration and development activities. Such increases could result in delays if services or equipment cannot be obtained in a timely manner due to inadequate availability and may

cause delays due to the need to coordinate the availability of services or equipment, any of which could materially decrease project exploration and development and/or increase production costs and limit profits.

The Company may not be able to acquire surface rights to its mineral concessions.

A mineral concession in Mexico does not confer any ownership of surface rights. The majority of the Company's mineral properties are located in remote and relatively uninhabited areas. There are currently no areas of interest within the Company's mineral concessions that are overlain by significant habitation or industrial users. However, there are potential overlapping surface usage issues in some areas. Some surface rights are owned by local communities or "Ejidos", and some surface rights are owned by private ranching or residential interests. The Company will be required to negotiate the acquisition of surface rights in those areas where it may wish to develop mining operations. The Company's mineral interests are located on community or private land, and it is necessary to deal with the owners for access and any potential development or exploitation rights. There can be no assurance that the Company will be able to negotiate and acquire surface access rights on terms acceptable to the Company or at all.

In addition, surface rights may be subject to challenge or litigation (See “Legal Proceedings and Regulatory Actions” below). There can be no assurance that the Company will be successful against such challenges or ligation.

The Company may not be able to complete acquisitions it pursues and any completed acquisitions or business arrangements may ultimately not benefit its business.

As part of the Company's business strategy, it has sought and will continue to seek new mining and development opportunities in the mining industry. In pursuit of such opportunities, it may fail to select appropriate acquisition candidates, negotiate appropriate acquisition terms, conduct sufficient due diligence to determine all related liabilities or to negotiate favourable financing terms. The Company cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or that any acquisitions or business arrangements completed will ultimately benefit its business.

Any future acquisitions would be accompanied by risks, such as a significant decline in the relevant metal price after the Company commits to complete an acquisition on certain terms; the quality of the mineral deposit acquired proving to be lower than expected; the difficulty of assimilating the operations and personnel of any acquired companies; the potential disruption of its ongoing business; the inability of management to realize anticipated synergies and maximize its financial and strategic position; the failure to maintain uniform standards, controls, procedures and policies; and the potential for unknown or unanticipated liabilities associated with acquired assets and businesses, including tax, environmental or other liabilities. There can be no assurance that any business or assets acquired in the future will prove to be profitable, that the Company will be able to integrate the acquired businesses or assets successfully or that the Company will identify all potential liabilities during the course of due diligence. Any of these factors could have a material adverse effect on its business, expansion, results of operations and financial condition.

The Company may be adversely affected by challenges to property title.

Although the Company receives title opinions for properties in which it has a material interest, there is no guarantee that title to such properties will not be challenged or impugned. While the mining claims in which the Company has, or has the right to acquire, an interest have been surveyed, the precise location of the boundaries of the claims and ownership of mineral rights in specific tracts of land comprising the claims may be challenged. The Company's mineral concessions may be subject to prior unregistered agreements or transfers or native land claims and title may be affected by unidentified or unknown defects. The Company has conducted as thorough an investigation as possible on the title of properties that it has acquired or will be acquiring to be certain that there are no other claims or agreements that could affect its title to the concessions or claims. If title to the Company's properties is disputed, it may result in the Company paying substantial costs to settle the dispute or clear title and could result in the loss of the property, which events may affect the economic viability of the Company.

Indigenous peoples' title claims may adversely affect the Company's ability to develop its mineral projects.

Some of the Company's properties may be subject to the rights or the asserted rights of various community stakeholders, including indigenous peoples'. The presence of community stakeholders may impact the Company's ability to develop or operate its mining properties and projects or to conduct exploration activities. Accordingly, the Company is subject to the risk that one or more groups may oppose the continued operation, further development or new development or exploration of the Company's current or future mining properties and projects. Such opposition may be directed through legal or administrative proceedings, or through protests or other campaigns against the Company's activities.

Governments in many jurisdictions must consult with, or require the Company to consult with, indigenous peoples with respect to grants of mineral rights and the issuance or amendment of project authorizations and permits, pursuant to various international and national laws, codes, resolutions, conventions and guidelines. Consultation and

other rights of indigenous peoples may require accommodation including undertakings regarding employment, royalty payments and other matters. This may affect the Company's ability to acquire within a reasonable time effective mineral titles, permits or licenses in these jurisdictions, including in some parts of Mexico in which title or other rights are claimed by indigenous peoples', and may affect the timetable and costs of development and operation of the Company's mineral properties in these jurisdictions. In addition, the risk of unforeseen title claims by indigenous peoples' could affect existing operations and development projects. These legal requirements may also affect the Company's ability to expand or transfer existing operations or to develop new projects.

Health and Safety Hazards

Workers involved in mining operations are subject to many inherent health and safety risks and hazards, including, but not limited to, contraction of COVID‐19, rock bursts, cave‐ins, floods, falls of ground, tailings dam failures, chemical hazards, mineral dust and gases, use of explosives, noise, electricity and moving equipment (especially heavy equipment) and slips and falls, which could result in occupational illness or health issues, personal injury, and loss of life, and/or facility and workforce evacuation. These risks cannot be eliminated and may adversely affect the Company's reputation, business and future operations.

The Company's future success depends on its relationships with the communities in which it operates.

The Company's relationships with the communities in which the Company operates are critical to ensuring the future success of existing operations and the construction and development of future projects. There is an increasing level of public interest worldwide relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations ("NGOs"), some of which oppose globalization and resource development, are often vocal critics and attempt to interfere with the mining industry and its practices, including the use of cyanide and other hazardous substances in processing activities. Adverse publicity generated by such NGOs or others related to extractive industries generally, or their operations specifically, could have an adverse effect on the Company's reputation or financial condition and may impact the Company's relationship with the communities in which it operates. While the Company firmly believes that it operates in a socially responsible manner, there is no guarantee that the Company's efforts and investments in this respect will mitigate this potential risk.

Reputational damage could adversely affect the Company's operations and profitability.

Damage to the Company's reputation can be the result of the actual or perceived occurrence of any number of events, and could include negative publicity (for example, with respect to the Company's handling of environmental matters or dealings with community groups). The increased use of social media and other web-based tools used to generate, publish and discuss user-generated content and to connect with other users has made it increasingly easier for individuals and groups to communicate and share opinions and views regarding the Company and its activities. The Company does not ultimately have direct control over how it is perceived by others and reputational damage could adversely affect the Company's operations and profitability.

The Company's exploration, development and mining activities are subject to foreign currency exchange fluctuations which could result in foreign exchange losses.

Exploration, development and mining activities in Canada and Mexico are subject to foreign currency exchange fluctuations. The Credit Facility drawdowns are denominated in U.S. dollars. The majority of corporate costs are denominated in Canadian dollars and the majority of the exploration, development and mining costs of the Company are denominated in U.S. dollars or Mexican pesos. Although timing of refunds cannot be assured, the Company also receives its Mexican value added tax (IVA) refunds in Mexican pesos. As the Company predominately holds U.S. dollars, the Company may be exposed to material effects on having to purchase Mexican pesos and Canadian dollars. Despite all these factors, the Company may suffer losses due to adverse foreign currency fluctuations.

Interest rate and Credit Facility risk

In respect of financial assets, the Company's policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash equivalents in order to maintain liquidity. Fluctuations in interest rates impact the value of cash equivalents.

The Credit Facility is also subject to interest rate risk as amounts outstanding are subject to changes based on fluctuations in the SOFR. Increases to benchmark interest rates may have an impact on the Company's cost of borrowing under the Credit Facility and any debt financing the Company may negotiate, resulting in reduced amounts available to fund the Company's exploration, development and production activities and could negatively impact the market price of its Common Shares and/or the price of gold or silver, which could have a material adverse effect on the Company's operations and financial condition.

Of the $120 million Credit Facility, the Company has drawn down on the $50 million Term Facility which has now been repaid in full. Drawdown of the $70 million Revolving Facility is subject to the Company meeting drawdown

conditions. Failure to meet such conditions or the breach of certain covenants under the Credit Facility could result in the Company being unable to complete additional drawdowns or triggering default provisions under the Credit Facility, requiring early repayment of the amounts drawn down and adversely affecting the Company's financial position and business.

The Company may require additional financing and future share issuances may adversely impact share price

The Company's current cash and cashflows may not be sufficient to pursue additional exploration, development or discovery of additional reserves, extension to life-of-mines or new acquisitions and, the Company may require additional financing. Additional financing may not be available on acceptable terms, if at all. The Company may need additional financing by way of offerings of equity or debt or the sale of a project or property interests in order to have sufficient working capital for its business objectives, as well as for general working capital purposes.

The success and the pricing of any such capital raising and/or debt financing will be dependent upon the prevailing market conditions at that time. There can be no assurance that financing will be available to the Company or, if it is available, that it will be offered on acceptable terms. Sales or issuances of substantial amounts of securities of the Company, or the perception that such sales could occur, may adversely affect prevailing market prices for the securities of the Company that are issued and outstanding from time to time. If additional financing is raised through the issuance of equity or convertible debt securities of the Company, this may negatively impact the price of the Company's common shares and could result in dilution to shareholders with respect to voting power and the interests of shareholders in the net assets of the Company may be diluted.

The Company may be involved in litigation which may have a material adverse impact on the Company's operations and financial condition.

The Company is or may be subject to various claims and legal proceedings, including adverse rulings in current or future litigation against it or its directors or officers. The outcome of these claims may be subject to uncertainty and it is possible that some of these claims may be resolved unfavourably against the Company, which may result in a material adverse impact on the Company's financial performance, cash flow or results of operations. The Company carries liability insurance coverage and establishes reserves for matters that are probable and can be reasonably estimated; however, there can be no assurance that the amount of such coverage is sufficient to protect against all potential liabilities. In addition, the Company may be involved in disputes with other parties in the future that may result in litigation, which may have a material adverse impact on the Company's future cash flow, profitability, operations and financial condition.

The Company may be involved in disputes related to its contractual interests in certain properties.

The Company may, from time to time, become a party to agreements pursuant to which it may earn interests in certain properties. Title to such properties may be held in the names of parties other than the Company. Any of such properties may become the subject of an agreement which conflicts with the agreement pursuant to which the Company may earn its interest, in which case the Company may incur expenses in resolving any dispute relating to its interest in such property and such a dispute could result in the delay, indefinite postponement of further exploration and development of properties or the possible loss of such properties.

The Company may use certain financial instruments that subject it to a number of inherent risks.

From time to time, the Company may use certain financial instruments to manage the risks associated with changes in gold and silver prices, interest rates and foreign currency exchange rates. The use of financial instruments involves certain inherent risks including, among other things: (i) credit risk, the risk of default on amounts owing to the Company by the counterparties with which the Company has entered into such transaction; (ii) market liquidity risk, the risk that the Company has entered into a position that cannot be closed out quickly, either by liquidating such financial instrument or by establishing an offsetting position; (iii) unrealized mark-to-market risk, the risk that, in respect of certain financial instruments, an adverse change in market prices for commodities, currencies or interest rates will result in the Company incurring an unrealized mark-to-market loss in respect of such derivative products. Volatility of external factors beyond the Company's control may result in substantial and permanent losses. Furthermore, to adequately reduce these risks to acceptable levels, available investment alternatives may result in limited or no return on these assets and any derivative which may be acquired in an attempt to mitigate these risks may be ineffective.

The Company may not be successful in maintaining internal control over financial reporting.

The Company documents and tests its internal control procedures in order to maintain adequate internal control over its financial reporting and satisfy the requirements of applicable regulations, including Section 404 of the Sarbanes Oxley Act of 2002 (the "Sarbanes Oxley Act") in the United States. The Sarbanes Oxley Act requires, among other things, an annual assessment by management of the effectiveness of the Company's internal control over financial reporting. The Company may fail to maintain the adequacy of its internal control over financial reporting as such

standards are modified, supplemented or amended from time to time, and management may not be able to conclude, on an ongoing basis, that the Company has effective internal control over financial reporting in accordance with applicable regulations. The Company's failure to satisfy the requirements of applicable regulations on an ongoing, timely basis could result in the loss of investor confidence in the reliability of the Company's financial statements which, in turn, could harm the Company's business and negatively impact the trading price or the market value of the Company's securities. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company's operating results or cause the Company to fail to meet its reporting obligations.

Future acquisitions of companies, if any, may provide the Company with challenges in implementing the required processes, procedures and controls in the Company's acquired operations. No evaluation can provide complete assurance that the Company's internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be reported. The effectiveness of the Company's processes, procedures and controls could also be limited by simple errors or faulty judgments. In addition, as the Company expands, the challenges involved in implementing appropriate internal control over financial reporting will increase and will require the Company to continue to monitor its internal control over financial reporting. Although the Company intends to expend substantial time and incur substantial costs, as necessary, to ensure ongoing compliance, the Company cannot be certain that it will be successful.

The Company may be unable to obtain adequate insurance to cover risks.

The Company's business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents, labour disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, changes in the regulatory environment, natural phenomena such as inclement weather conditions, fires, floods and earthquakes. Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to the Company's properties or the properties of others, delays in mining, monetary losses and possible legal liability.

The Company may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not continue to be available, subject to certain exclusions (e.g. COVID-19 related disruptions), or may not be adequate to cover any resulting liability. Moreover, insurance against risks such as environmental pollution or other hazards as a result of exploration and production is not generally available to the Company or to other companies in the mining industry on acceptable terms. The Company might also become subject to liability for impact on the environment or other hazards which it may not be insured against or which the Company may elect not to insure against because of premium costs or other reasons. Losses from these events may cause the Company to incur significant costs that could have a material adverse effect upon its financial performance and results of operations.

Loss of key personnel could materially affect the Company's operations and financial condition.

Recruiting and retaining qualified personnel, including certain contractors, is critical to the Company's success. The Company is dependent on the services of key executives and other highly skilled and experienced executives and personnel focused on managing the Company's interests. The number of persons skilled in acquisition, exploration, development and operation of mining properties are limited and competition exists to attract such persons. As the Company's business activity grows, the Company will require additional key financial, administrative and mining personnel as well as additional operations staff. There can be no assurance that the Company will be successful in attracting, training and retaining qualified personnel. If the Company is not able to attract, hire and retain qualified personnel, the efficiency of the Company's operations could be impaired, which could have an adverse impact on the Company's future cash flows, earnings, financial performance and financial condition. The lack of availability of qualified personnel may also cause the Company to experience increases in recruiting and training costs and decreases in operating efficiency, productivity and profit margins.

The Company may be subject to potential conflicts of interest with its directors and/or officers.

The directors and officers of the Company may, and in certain cases do, serve as directors and/or officers of other public and private companies, and may devote a portion of their time to manage other business interests. This may result in certain conflicts of interest. To the extent that such other companies may participate in ventures in which the Company is also participating, such directors and officers of the Company may have a conflict of interest in negotiating and reaching an agreement with respect to the extent of each company's participation. The laws of British Columbia, Canada, require the directors and officers to act honestly, in good faith, and in the best interests of the Company and its shareholders. However, in conflict of interest situations, directors and officers of the Company may owe the same duty to another company and will need to balance the competing obligations and liabilities of their actions. There is no assurance that the needs of the Company will receive priority in all cases.

Enforcement of judgments against the Company or its officers or directors may be difficult.

The Company is organized under the laws of, and headquartered in, British Columbia, Canada and all of its officers are residents of Canada. Six of the seven directors are residents of Canada and one is a resident of Mexico. All of the Company's operating assets are located outside of Canada and the United States. As a result, it may be difficult for investors to enforce within Canada or the United States any judgments obtained against the Company or its officers or directors, including judgments predicated upon the civil liability provisions of applicable securities laws. In addition, there is uncertainty as to whether the courts of Mexico and other jurisdictions would recognize or enforce judgments of Canadian or United States courts obtained against the Company or its directors and officers predicated upon the civil liability provisions of the securities laws of Canada or the United States, or be competent to hear original actions brought in Mexico or other jurisdictions against the Company or its directors and officers predicated upon the securities laws of Canada or the United States. Further, any payments as a result of judgments obtained in Mexico would be in pesos and service of process in Mexico must be effectuated personally and not by mail.

There are differences in U.S. and Canadian reporting of mineral resources and mineral reserves so that information may not be comparable to U.S. reporting companies.

The Company's mineral resource and mineral reserve estimates are not directly comparable to those made in filings pursuant to SEC requirements applicable to United States domestic companies, as the Company generally reports mineral resources and mineral reserves in accordance with Canadian practices. These practices are different from those used to report mineral resource and mineral reserve estimates in reports and other materials filed with the SEC by United States domestic companies. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves.

Accordingly, information concerning descriptions of mineralization, reserves and resources contained in this Annual Information Form, or in the documents incorporated herein by reference, may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

The Company could be subject to indirect anti-corruption and anti-bribery enforcement proceedings that could adversely affect the Company.

The Company's operations are governed by, and involve interactions with, various levels of government in foreign countries. The Company is required to comply with anti‐corruption and anti‐bribery laws, including the Corruption of Foreign Public Officials Act (Canada) and the Foreign Corrupt Practices Act (US) and similar laws in México. In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such laws, resulting in greater scrutiny and punishment to companies convicted of violating anti‐corruption and anti‐bribery laws. A company may be found liable for violations by not only its employees, but also by its contractors and third-party agents. The Company has an Anti-Bribery and Anti-Corruption Policy and internal controls and procedures intended to address compliance and business integrity issues, and the Company continues to train its employees on awareness of anti-bribery protocols and compliance. However, despite careful establishment and implementation, the Company's internal procedures and programs may not always be effective in ensuring that it, its employees, contractors or third-party agents will comply strictly with all such applicable laws. If the Company becomes subject to an enforcement action or is found to be in violation of such laws, this may have a material adverse effect on the Company's reputation, result in significant penalties or sanctions, and have a material adverse effect on the Company's operations.

Any enforcement proceedings under Canada's Extractive Sector Transparency Measures Act against the Company could adversely affect the Company.

The Extractive Sector Transparency Measures Act (Canada) ("ESTMA") requires public disclosure of certain payments to governments by companies engaged in the commercial development of minerals which are publicly listed in Canada. Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments, including aboriginal groups. ESTMA requires reporting on the payments of any taxes, royalties, fees, production entitlements, bonuses, dividends and infrastructure improvements. If the Company becomes subject to an enforcement action or is in violation of ESTMA, this may result in significant penalties or sanctions which may also have a material adverse effect on the Company's reputation.

Security breaches of the Company's information systems could adversely affect the Company.

The Company's operations depend, in part, upon information technology systems. The Company's information technology systems are subject to disruption, damage or failure from a number of sources, including, but not limited to, hacking, computer viruses, security breaches, natural disasters, power loss, vandalism, theft and defects in design. Any of these and other events could result in information technology systems failures, operational delays, production downtimes, destruction or corruption of data, security breaches or other manipulation or improper use of the Company's data, systems and networks, any of which could have adverse effects on SilverCrest's reputation, business, results of operations, financial condition and share price.

The Company's risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect the Company's systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

Human Rights Matters

Various international and national laws, codes, resolutions, conventions, guidelines and other provisions governing human rights impose obligations on government and companies to respect human rights.

The obligations of government and private entities under the various international and national provisions pertaining to human rights continue to evolve and be defined. One or more groups of people may oppose the Company's current and future operations on human rights grounds. Such opposition may be directed through legal or administrative proceedings or expressed in manifestations such as protests, roadblocks or other forms of public expression against the Company's activities, may have a negative impact on the Company's reputation and have a material adverse effect on the Company's business.

4.3Environmental and Social Sustainability

General

Incorporating Environmental, Social, and Governance ("ESG") principles is crucial for mining enterprises intent on enduring value, diminishing operational hazards, and maintaining a competitive edge. In alignment with these values, SilverCrest has continued to demonstrate its dedication to responsible social and environmental practices in 2023, striving to exceed the industry's regulatory standards throughout the Company's exploration, development, extraction, and site rehabilitation processes. SilverCrest strives to be exemplary partners with its stakeholders, which is rooted in a deep understanding of mining's potential effects on local communities and ecosystems, coupled with a proactive approach to evolving risks. This vigilance ensures the safeguarding of SilverCrest's workforce, business collaborators, local communities and the natural environment, alongside the safeguarding of the Company's assets and reputation.

Given the positive response from the Company's inaugural ESG report in 2022, SilverCrest plans to disclose its second ESG report ("2023 ESG Report") during Q2, 2024. As such, the purpose of the Environmental and Social Sustainability section in this year’s AIF is to cover the main sustainability highlights and milestones achieved by the Company in 2023 as well as to cover SilverCrest’s approach to ESG management. Greater detail and scope will be provided in the upcoming 2023 ESG Report.

Governance

The Board has assigned the supervision of environmental, social, and human capital matters, as well as other climate-related issues, to the Safety, Environmental and Social Sustainability ("SESS") Committee, established in May 2019. The SESS Committee's role is to support the Board by monitoring and advising on the Company's sustainability, social responsibility, environmental stewardship, and health & safety strategies, policies and initiatives. The SESS Committee operates under a formal charter, detailing its roles and duties, which can be found on the Company's website. The SESS Committee convenes with the Board at a minimum twice per fiscal year and additionally as needed. During 2023, the SESS Committee met four times and plans to hold four meetings in 2024.

At the management level, the Company has further developed the new ESG governance structure that was implemented in 2022. The role of the governance structure’s role remains to ensure that all ESG risks are tracked, understood, discussed and addressed at all levels and geographies of the Company, including the Board. To achieve this, a clear chain of accountability that enables ESG related information to be efficiently communicated up and down the organization is required. To bolster this accountability and the accuracy of ESG data on a practical level, the Company has decided to modify the existing ESG governance structure such that the Las Chispas site manager is now responsible for the data quality being reported to head office. This change is reflected in the Company's ESG governance structure below as of December 31, 2023.

In 2023, SilverCrest started to hold monthly cross functional ESG team meetings with the aim of integrating ESG management principles throughout the various functions of the organization.

Materiality

The Company established its ESG strategy in 2020 after completing an in-depth stakeholder materiality assessment conducted in partnership with third-party consultants. This strategy, along with the Company’s ESG policies, formalizes the Company's commitment to a practical approach to ESG and serves as a cornerstone for making strategic decisions that ensure the success of our operations. This assessment was a strategic exercise to identify, refine, and evaluate what ESG issues are of most consequence to the Company and its stakeholders. While the assessment acknowledged numerous issues as pertinent to stakeholders, it distilled these down to a core list of priorities that now shape SilverCrest's strategic planning, target setting, and reporting processes. The materiality matrix that follows illustrates these key issues and their respective levels of importance.

During 2023, the Company continued to maintain regular communications with its different stakeholder groups in order to maintain a strong understanding of the priority of issues and also identify any new ESG issues. In particular, SilverCrest regularly meets with the various local community groups proximal to Las Chispas to understand the challenges that they face.

Strategy

Based on the key issues identified by the materiality assessment, SilverCrest and its third-party consultants developed an ESG Strategy Framework. The ESG strategy is based upon five pillars: Environment, Social Capital, Human Capital, Leadership & Governance, and Business Resilience. These five pillars represent the most material ESG issues for the Company to manage while also acting as a framework for long-term sustainable operations.

Within each pillar, the Company identified focus areas. There are 23 focus areas across the five pillars that have performance measures associated with them to allow the Company to measure progress over time and optimize the corporate and operational performance. These performance measures are aligned with the Sustainability Accounting Standards Board ("SASB") recommended disclosure metrics for the metals and mining industry. SilverCrest has made great strides in developing the processes to accurately track and collect the most critical of these metrics such as those around green house gas ("GHG") emissions, water, and health and safety. However, certain SASB recommended performance measures are not yet available. The focus areas for each pillar are listed in the graphic below.

Environment

SilverCrest is cognizant about the potential environmentally disruptive nature of the extractive mining industry while also aware of the fact that precious metals such as those mined by the Company are critical to global supply chains including those of the renewable energy sector. As such the Company is committed to taking a practical approach to managing its environmental impact through the minimization and mitigation of negative impacts over its site’s operational lifecycles.

One of these practical steps was the investments made in late 2022 and the beginning of 2023 to enhance SilverCrest’s ESG data tracking systems. The first step to making meaningful improvements to the company’s ESG footprint is to track the performance of the key metrics. By tracking the key data, SilverCrest can make better informed decisions to have the largest positive impact. The Company plans to publish certain 2023 environmental metrics in its 2023 ESG Report expected to be released during Q2, 2024.

In 2022, SilverCrest published the findings from the physical and transition climate risk assessments conducted in partnership with third-party consultants in the Company’s inaugural Task Force for Climate-Related Financial Disclosures ("TCFD") Report. The findings from these studies validated concerns highlighted by local community stakeholders during community engagement activities. The key finding was that water scarcity was expected to be

the greatest climate risk to the region and in particular to the local community which are heavily reliant (74% of the local community near Las Chispas works in agriculture) on water for their livelihoods.

In response to these findings, SilverCrest set out its commitment to address the issue of water scarcity in its Water Management Policy. In addition, it also published a Water Stewardship Report in 2022 which outlined the Company’s five-year plan to invest in improving water resilience for local communities. The Company decided to invest heavily in improving local water infrastructure over marginal water consumption efficiencies at Las Chispas, because senior management recognized that such an investment in the community would have a much greater impact in the community than at site given the concerning findings of the physical risk assessment conducted. Through Company studies and comparison to peers, Las Chispas is a lower water footprint mine. This combined with the fact that the majority of the local water infrastructure is aging and inefficient led to the conclusion that allocating capital to community water infrastructure projects was an optimal use of a substantial portion of the Company’s ESG budget, with other indirect benefits such as strengthening social license to operate too.

With the knowledge that water scarcity is the greatest physical climate risk facing the region and communities, SilverCrest has continued to invest in water infrastructure projects to improve water resilience for local communities. In 2023, SilverCrest allocated $0.4 million from its committed $1.5 million towards water stewardship initiatives within the community. This investment facilitated approximately 900 m of sewer system repairs, more than 500 m of aqueduct enhancements in the Arizpe region of Sonora, and the establishment of electrified pumps for wells. Furthermore, SilverCrest is actively collaborating with Mexican government agencies to acquire a water concession which will enable the town of Arizpe to apply for government water infrastructure funding. The Company is poised to continue its commitment to enhancing water infrastructure in 2024, with plans to allocate around $0.3 million for the repair of agricultural aqueducts and sewage systems.

Social Capital

During 2023, community and stakeholder engagement remained a major focus and the Company continued to strengthen its relationships with the local communities of Arizpe, Bamori, Banamichi, Sinoquipe, Bacoachi and Tahuichopa (all in the Mexican state of Sonora). The Company used previously established communication channels, which included regular community group meetings, to set up a transparent dialogue with the local communities.

The local communities have begun to benefit from the water infrastructure projects. In 2022, the river water gallery intake in Arizpe was repaired resulting in consistent water access for 231 hectares and 58 landowners and allowing for two planting seasons. An estimated 14% of farmers utilized this second planting season in the first year. SilverCrest is planning an educational presentation to further encourage local farmers to leverage the opportunity for an additional planting season, aiming to enhance agricultural productivity and economic outcomes in the community.

In 2023, the Company’s ESG practices and community engagement earned recognition in Mexico with the 2023 Empresas Socialmente Responsables (Socially Responsible Companies) distinction from the Mexican Centre for Philanthropy (CEMEFI). In addition, the Company has received recognition from the Confederation of Chambers of Commerce of Mexico (CONCAMIN) in the areas of ESG compliance and Outstanding Social Responsibility and Sustainability Practices.

Human Capital

Protecting the well-being of all the Company's employees and contractors by providing a safe and inclusive working environment has always been a major priority for SilverCrest. This commitment to employee safety is reflected in the Company’s Health and Safety Policy which can be found on the Company’s website. SilverCrest is proactive in identifying and mitigating any potential health and safety risks or hazards through the implementation of safety systems which include necessary health and safety training for all employees and contractors before conducting any work.

In 2023, the Company implemented a new safety and leadership program called “Prometimos Volver” or “Promise to Return Home”. The program was designed for all employees and contractors working at Las Chispas and included several workshops with the aim of further developing a culture of health and safety. In total, 707 people attended the workshops including 201 supervisors. In addition, SilverCrest became one of the first mining companies in Mexico to implement new self-rescue oxygen generator technology at Las Chispas. In the event of an emergency such as an underground fire, the self-rescue oxygen generator provides miners another tool to allow for safe escape to the surface. These initiatives have proven effective for mitigating the risks faced by workers and reflects the Company’s commitment to employee safety. To further develop SilverCrest’s safety and emergency processes, the Company is working towards obtaining ISO 45001 certification in 2024.

The Company also strives to recruit, develop and retain the best talent. To this end, SilverCrest aims to provide competitive compensation, appropriate training and to offer career development opportunities.

SilverCrest values all its employees and is committed to ensuring an inclusive environment for its workforce. This commitment is formalized in the Company’s Diversity and Gender Policy which is publicly available on the Company’s website. SilverCrest has made great strides towards gender diversity at the Board and senior management level. The Company recognizes there is still work to do in addressing diversity and inclusion of other underrepresented groups within the Company. As of December 31, 2023, the Board of Directors was made up of three females (one a Mexican national) and four males with female representation of 43% and the Executive Officers of the Company were made up of three females and five males with female representation of 38%.

Mining projects, such as Las Chispas, create employment and business opportunities that benefit the local communities. SilverCrest takes pride in the initiatives it has spearheaded to create a positive environmental and economic impact in its surrounding communities. The Company plans to continue to support the local economy through business partnerships with local businesses and the onboarding of local talent throughout the life of the mine. Local businesses and employees are also valuable assets for SilverCrest because of their understanding of regional, cultural and community issues. It's this insight that helps inform our operations and drives our commitment to nurture these vital relationships, as they are essential for sustained growth and community prosperity.

By the end of 2023, the Las Chispas Operation was a source of livelihood for approximately 320 unionized and non-unionized employees. Notably, 89% of these individuals are from Sonora, while 98% are from Mexico. In addition, our engagement with over 77 local businesses and regular communication with government agencies underscores our investment in the regional economy and demonstrates our commitment to inclusive growth that benefits all stakeholders.

4.4Mineral Projects

The Company currently has active mineral property interests in Mexico.

4.4.1Las Chispas Operation

The information with respect to Las Chispas attached as Appendix A to this Annual Information Form is the executive summary extracted from a technical report titled "Las Chispas Operation Technical Report", dated September 5, 2023, with an effective date of July 19, 2023 (the "Technical Report") that was prepared in compliance with NI 43-101 by Ausenco Engineering Canada Inc. ("Ausenco") with the assistance of several other independent engineering companies and consultants. For a listing of individuals, each of whom is a "qualified person" and "independent", as such terms are defined in NI 43-101, please refer to the Technical Report which can be accessed as described below. The detailed disclosure in the Technical Report is incorporated by reference in its entirety into this Annual Information Form.

For recent facts and circumstances applicable to the Las Chispas Operation arising since the Technical Report, please refer to the section below titled, "Las Chispas Operations Update".

The summary attached as Appendix A does not purport to be a complete summary of the Technical Report and is subject to all the assumptions, qualifications and procedures set out in the Technical Report and is qualified in its entirety with reference to the full text of the Technical Report. Readers should read this summary in conjunction with the Technical Report which may be inspected at the head office of SilverCrest at Suite 501, 570 Granville Street, Vancouver, British Columbia, V6C 3P1, during normal business hours. It can also be accessed under SilverCrest's profile on SEDAR+ at www.sedarplus.ca or the Company's website www.silvercrestmetals.com.

4.4.2Las Chispas Operations Update

During 2023, the following developments occurred in relation to Las Chispas:

•In 2023, the Company completed an additional 13.2 km of horizontal and vertical underground development. During 2023, mining rates averaged 824 tpd, above the ramp-up average estimate of 800 to 900 tpd.

•Average daily mill throughput was 1,182 tpd in 2023, which is in line with 1,140 tpd in the Technical Report. In 2023 gold and silver processed grades averaged 4.39 gpt Au and 423 gpt Ag, or 771 gpt AgEq and aligned with Mill Head Grade of 761 gpt AgEq in the Technical Report.

•Recovered 59,700 ounces of gold and 5.65 million ounces of silver, or 10.40 million AgEq ounces, compared to annual average of 10.0 million AgEq ounces per year outlined in the Technical Report.

•Sold 58,200 ounces of gold and 5.62 million ounces of silver, or 10.25 million AgEq ounces, at average realized price of $1,945/oz gold and $23.48/oz silver compared favourably to the prices of $1,800/oz gold and $23.00/oz silver in the Technical Report.

Table 1 below provides an update to Table 1-3 of the Technical Report in respect of the names of the Las Chispas veins. The typical rock mass quality remains unchanged.

Table 1: Typical Rock Mass Quality Ranges based on RMR76 Rock Mass Classification

Vein

Domain

Vein

Immediate HW-FW

Distal HW-FW

Babicanora Norte
Babicanora Vista

All

60
Good

60 to 65
Good

70
Good

Babicanora Main
Babicanora Sur

Low Quality Zones

20 to 40
Poor

20 to 50
Poor to Fair

Outside Low Quality Zones

60
Good

55 to 60
Fair

45 to 75
Good

Babicanora Central

Low Quality Zones

20
Poor

35
Poor

Outside Low-Quality Zones

35
Poor

50
Fair

80
Good

Las Chispas Area

All

60 to 65
Good

65
Good

60 to 65
Good

4.4.3Other Exploration Properties

The Company continually evaluates additional gold and silver prospects in the Americas with a focus in Mexico. The following properties are presently in the exploration stage.

El Picacho Property

El Picacho property is located in the State of Sonora, Mexico, approximately 40 km (road distance) northeast of the Las Chispas Property. The Company acquired El Picacho during 2020 by paying $2.4 million, including government back taxes, for 100% ownership in 11 mining concessions consisting of 7,060 hectares. During Q4, 2020, the Company received access rights and necessary drill permits (five-year license) for El Picacho. From 2021 to 2022, the Company's El Picacho exploration focused on expansion and infill drilling of areas with historic non-compliant mineral resources. In 2023, the Company focused on mapping and sampling of unexplored areas around Picacho to generate new targets for drilling consideration. There are currently no drill rigs active at Picacho.

Future payments, obligations or known future taxes payable in respect of El Picacho property are expected to total approximately $176,000 per year.

Cruz de Mayo Property

The Cruz de Mayo property is located in the State of Sonora, Mexico, approximately 22 km northwest of the town of Cumpas and 163 km northeast of Hermosillo. Cruz de Mayo presently consists of the Cruz de Mayo 2 mineral concession. SilverCrest, through La Llamarada, has 100% ownership of the Cruz de Mayo 2 concession.

At this time, the Company does not plan to perform a significant scope of work on the Cruz de Mayo property. Future payments, obligations or known future taxes payable in respect of the Cruz de Mayo are expected to total approximately $11,000 per year.

Silver Angel Property (Angel de Plata)

The Silver Angel property is located approximately 165 km northeast of Hermosillo, Sonora, Mexico. The community of Arizpe (estimated population 2,000) is located approximately 25 km to the west of the property. The property consists of one (1) concession totaling 619 hectares.

At this time, the Company does not plan to perform a significant scope of work on the Silver Angel property. Future payments, obligations or known future taxes payable in respect of the Silver Angel property are expected to total approximately $16,000 per year.


5. Dividends

5.1Dividends

Since its organization, the Company has not paid any dividends on its Common Shares and there is no current intent to pay dividends in the future.


6. Capital Structure

6.1General Description of Capital Structure

The Company's authorized share capital consists of an unlimited number of Common Shares without par value and an unlimited number of preferred shares without par value. As of the date of this Annual Information Form, the Company had 146,937,739 Common Shares issued and outstanding and no preferred shares issued and outstanding.

Common Shares

Each Common Share ranks equally with all other Common Shares with respect to distribution of assets upon dissolution, liquidation or winding up of the Company and payment of dividends. The holders of Common Shares are entitled to one vote for each share on all matters to be voted on by such holders and are entitled to receive pro rata such dividends as may be declared by the Board. The holders of Common Shares have no pre-emptive or conversion rights. The rights attached to the Common Shares can only be modified by the affirmative vote of at least two-thirds of the votes cast at a meeting of shareholders called for that purpose.

Preferred Shares

Preferred shares may at any time and from time to time be issued by the directors of the Company in one or more series with special rights and restrictions as may be determined by the directors of the Company, subject to the rights and restrictions applicable to the preferred shares as a class, and without further shareholder approval. The holders of preferred shares are entitled upon dissolution, liquidation or winding-up of the Company to receive, before any distribution is made to the holders of Common Shares the amount paid up with respect to each preferred share, together with any accrued and unpaid dividends thereon; provided that after such payment, the holders of preferred shares shall not be entitled to share in any further distribution of the property or assets of the Company, except as specifically provided for in the special rights and restrictions attached to any particular series. Except for such rights relating to the election of directors on a default in payment of dividends as may be attached to any series of preferred shares by the directors, holders of preferred shares are not entitled to receive notice of, or to attend or vote at, any general meeting of shareholders of the Company.

As of the date of this AIF, the Company has not issued any preferred shares.


7. Market for Securities

7.1.Trading Price and Volume

The Common Shares of the Company are listed for trading in Canada on the TSX under the symbol "SIL". The Company's Common Shares are also listed for trading on the NYSE under the symbol "SILV".

The monthly high and low prices and total trading volumes for the Company's Common Shares on the TSX during fiscal 2023 are as set out below:


Month	High (C$)	Low (C$)	Volume
January 2023	9.84	8.13	6,789,400
February 2023	9.42	7.03	8,025,900
March 2023	9.98	7.10	9,941,500
April 2023	10.04	8.71	6,693,300
May 2023	10.19	8.51	5,648,100
June 2023	9.13	7.38	4,251,200
July 2023	8.48	6.99	5,629,400
August 2023	7.10	5.54	13,629,700
September 2023	6.80	5.86	5,378,000
October 2023	7.27	5.85	5,774,700
November 2023	8.85	6.61	6,336,900
December 2023	9.20	8.23	5,139,300

The monthly high and low prices and total trading volumes for the Company's Common Shares on the NYSE during fiscal 2023 are as set out below:


Month	High (US$)	Low (US$)	Volume
January 2023	7.36	5.94	22,455,100
February 2023	7.09	5.16	26,626,800
March 2023	7.39	5.16	31,810,500
April 2023	7.50	6.39	19,035,200
May 2023	7.56	6.26	19,747,900
June 2023	6.80	5.56	21,345,100
July 2023	6.43	5.24	19,609,400
August 2023	5.42	4.16	42,438,800
September 2023	5.02	4.33	18,167,300
October 2023	5.31	4.26	29,844,300
November 2023	6.52	4.79	27,011,200
December 2023	6.96	6.06	25,471,400

7.2 Prior Sales

The following table summarizes the issuances of stock options, performance share units (“PSUs”), deferred share units (“DSUs”) and restricted share units (“RSUs”) by the Company for the year ended December 31, 2023:


Date of Issue	Number of Securities	Exercise Price Cdn$		Type of Security
November 13, 2023	65,000	$	7.13	Stock options
February 15, 2023	61,875	N/A		Performance share units


8. Escrowed Securities and Securities Subject to Contractual Restriction on Transfer

8.1Escrowed Securities

To the Company's knowledge, there are no securities of the Company in escrow or subject to a contractual restriction on transfer.


9. Directors and Officers

9.1Name, Occupation and Security Holding

The following table sets forth the name, province or state and country of residence, position with the Company at the date hereof, and principal occupation during the five preceding years of each director and executive officer of the Company. Each of the directors of the Company holds office until the next annual general meeting of the Company unless the director's office is earlier vacated in accordance with the articles of the Company or the director becomes disqualified to serve as a director.


Name, Province and Country of Residence	Office	Date of Appointment as Director	Principal Occupation Within the Five Preceding Years
John H. Wright(2)(3) British Columbia, Canada	Board Chair (since June 15, 2023) and Director	Director since January 1, 2017	Retired Professional Engineer; Lead Director of Ero Copper Corp. since July 2016; Member of Business Development of Capstone Mining Corp. from December 2006 to December 2022.


Name, Province and Country of Residence	Office	Date of Appointment as Director	Principal Occupation Within the Five Preceding Years
N. Eric Fier British Columbia, Canada	Chief Executive Officer and Director	Director since June 23, 2015	Chief Executive Officer of the Company since June 2015; Chief Operating Officer of Goldsource Mines Inc. ("Goldsource") from June 2010 to November 2020; Executive Chairman of Goldsource since January 2018; Interim VP of Finance of Goldsource from November 2020 to October 2021; and President of Maverick (Mining) Consultants Inc. since July 2001.
Pierre Beaudoin(4) Ontario, Canada	Director	Director from May 31, 2018 to December 10, 2018; and since February 1, 2024	Chief Operating Officer of the Company from November 2018 to January 2024.
Laura Diaz(3)(4) Mexico City, Mexico	Director	Director since November 11, 2020	Partner of a law firm in Mexico since July 2020; Self-employed from July 2019 to June 2020; and General Director of Mines at the Minister of Economy from December 2018 to June 2019.
Anna Ladd-Kruger(1)(3) British Columbia, Canada	Director	Director since July 11, 2022	Retired Mining Executive; Chartered Professional Accountant (CPA, CMA) and Corporate Director; Director of Integra Resources Corp. since December 2018; Director of Sherritt International Corporation since February 2023; Director of Nevada Corporate Corp. since November 2023; Chair of the Board of Directors of Nova Minerals Limited from 2022 to 2023; Director of Excellon Resources Inc. from 2019 to 2022 and Chief Financial Officer and Vice President Corporate Development of Excellon from 2019 to 2020; and Chief Financial Officer of McEwen Mining Inc. from 2020 to 2022.
Ani Markova(1)(2)(4) Ontario, Canada	Director	Director since May 30, 2019	Founder and CEO of Investor View Advisory since August 2020; Co-founder and Business Development of Onyen Corporation since 2020; Chartered Financial Analyst and Corporate Director; Director of Critical Elements Lithium Corporation since September 2021; Director of Golden Star Resources Ltd. from September 2019 to January 2022; and VP and Portfolio Manager at AGF Investments from August 2003 to January 2019.
Hannes Portmann(1)(2)(4) Ontario, Canada	Director	Director since October 31, 2018	Chief Financial Officer of Cabot Management Company Limited (a developer and operator of master-planned residential, resort, and golf club communities) since February 2022; Chief Financial Officer and Business Development of Marathon Gold Corporation from October 2019 to January 2022; and Independent Consultant from June 2018 to September 2019.


Name, Province and Country of Residence	Office	Date of Appointment as Director	Principal Occupation Within the Five Preceding Years
Graham C. Thody(1)(3) British Columbia, Canada	Director	Director since August 6, 2015	Retired Chartered Professional Accountant; Board Chair of the Company from August 2015 to June 2023; Chairman of UEX Corporation (a uranium and cobalt exploration and development company) from January 2015 until August 2022; and Director of Goldsource since December 2003.
Christopher Ritchie Ontario, Canada	President	N/A	President of the Company since January 2018.
Anne Yong British Columbia, Canada	Chief Financial Officer	N/A	Chief Financial Officer of the Company since January 2017.
Sean Deissner British Columbia, Canada	Vice President, Financial Reporting and Controller	N/A	Vice President, Financial Reporting and Controller since November 2023; and various finance roles since March 2016 at Pan American Silver Corp. ("Pan American") and eventually serving as Senior Director of Financial Reporting of Pan American from May 2023 to November 2023.
Stephany (Rosy) Fier British Columbia, Canada	Vice President, Exploration	N/A	Vice President, Exploration of the Company since July 2021; and Vice President, Exploration and Technical Services of the Company from January 2019 to July 2021.
Tara Hassan British Columbia, Canada	Vice President, Corporate Development	N/A	Vice President, Corporate Development of the Company since September 2020; Director, Mining Content and Strategy of VRIFY Technology Inc. from January 2020 to September 2020; and Senior VP Equity Analyst, Metals and Mining of Raymond James Ltd. from November 2016 to December 2019.
Clifford Lafleur Ontario, Canada	Vice President, Operations	N/A	Vice President, Operations of the Company since February 2024; Vice President Technical Services of the Company from July 2021 to January 2024; Director, Resource Management and Mine Engineering of Torex Gold Resources Inc. from January 2020 to July 2021; and Director, Technical Services of Torex Gold Resources Inc. from March 2017 to January 2020.
Bernard Poznanski British Columbia, Canada	Corporate Secretary	N/A	Partner of Koffman Kalef LLP, a law firm, since 1993.

__________________

(1)Member of the Audit Committee.

(2)Member of the Compensation Committee.

(3)Member of the Corporate Governance and Nominating Committee.

(4)Member of the Safety, Environmental and Social Sustainability Committee.

As at the date hereof, the directors and executive officers of the Company as a group beneficially owned, or controlled or directed, directly or indirectly, approximately 5,944,314 Common Shares or 4.0% of the then issued and outstanding Common Shares of the Company.

9.2Cease Trade Orders, Bankruptcies, Penalties or Sanctions

Other than as disclosed herein, none of the directors or executive officers is, as at the date of this Annual Information Form, or has been, within the ten years preceding the date of this Annual Information Form, a director, chief executive officer or chief financial officer of any company (including the Company) that

(a)was subject to a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than 30 consecutive days (collectively, an "Order"), when such Order was issued while the person was acting in the capacity of a director, chief executive officer or chief financial officer of the relevant company; or

(b)was subject to an Order that was issued after such person ceased to be a director, chief executive officer or chief financial officer of the relevant company, and which resulted from an event that occurred while the person was acting in the capacity of a director, chief executive officer or chief financial officer of the relevant company.

Other than as disclosed herein, no director or executive officer of the Company or any shareholder holding a sufficient number of Common Shares to affect materially the control of the Company:

(a)is, as at the date of this Annual Information Form, or has been, within the ten years preceding the date of this Annual Information Form, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets;

(b)has, within the ten years preceding the date of this Annual Information Form, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of that person;

(c)has been subject to any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

(d)has been subject to any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision regarding the Company.

On March 3, 2023, Laura Díaz was a director of Magna Gold Corp. (“Magna”), when Magna filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act (Canada) which provides creditor protection while corporations seek to restructure their affairs. As a result of the foregoing, the TSX-V transferred trading of Magna’s common shares to the NEX Board of the TSX-V effective at the opening of market on March 8, 2023. On March 27, 2023, Magna was granted an order (the "Order") pursuant to the Companies' Creditors Arrangement Act (the "CCAA") by the Ontario Superior Court of Justice (Commercial List) (the "Court") on application by Magna seeking court protection from its creditors to allow it to restructure its business and property as a going concern. The Order, among other things, provided a stay of proceedings (the "Stay of Proceedings") barring all creditors from taking action to recover debts owed by Magna during the stay period. As a result of the foregoing, the TSX-V suspended trading of Magna’s common shares on the NEX Board. The Stay of Proceedings was granted until April 6, 2023 and extended by the Court until November 15, 2023. Magna was unable to finalize a plan of compromise or arrangement with its creditors by November 15, 2023. Accordingly, on November 21, 2023 pursuant to a further order of the Court, the CCAA protections and proceedings, as they applied to Magna, were terminated. Ms. Diaz resigned as a director of Magna on February 29, 2024.

On August 31, 2015, Pierre Beaudoin was the Chief Operating Officer of Detour Gold Corporation ("Detour Gold") when Detour Gold was advised that the Ontario Provincial Police would be investigating the circumstances surrounding the death of an employee that occurred at the Detour Lake mine site on June 3, 2015. On April 21, 2016, Detour Gold was charged with one count of criminal negligence causing death under the Criminal Code as a result of the June 2015 fatality. On August 30, 2017, Detour Gold pleaded guilty to the one count of criminal negligence. A sentencing hearing was held on August 30 and 31, 2017. Detour Gold was ordered to pay a fine of $1.4 million plus the 30% victim surcharge provided for under the Criminal Code. In addition, the court, as requested by Detour Gold, ordered a restitution payment for the family of the deceased worker for lost income through to retirement which was considered when determining the fine amount.

On May 13, 2014, Pierre Beaudoin was the Chief Operating Officer of Detour Gold when a proposed securities class action claiming, among other things, special and general damages in the amount of $80 million, was commenced against Detour Gold and its former President and Chief Executive Officer in relation to Detour Gold's secondary

market public disclosure concerning the Detour Lake Mine operations between April 9, 2013 and November 7, 2013 (the "Class Action Claim"). On July 10, 2014, the plaintiff issued an Amended Statement of Claim incorporating allegations in respect of Detour Gold's primary market disclosure, specifically in respect of Detour Gold's final short form prospectus dated June 2, 2013. On November 29, 2016, the parties agreed to settle the Class Action Claim for $6 million and dismiss the action without any admission of liability subject to court approval which was subsequently obtained on June 27, 2017.

9.3Conflicts of Interest

There are potential conflicts of interest to which the directors and officers of the Company will be subject in connection with the business of the Company. In particular, certain of the proposed directors and/or officers of the Company serve as directors and/or officers of other companies that are similarly engaged in the business of acquiring, developing and exploiting natural resource properties and whose business may, from time to time, be in direct or indirect competition with the Company. Such associations may give rise to conflicts of interest from time to time. The directors of the Company are required by law to act honestly and in good faith with a view to the best interests of the Company and to disclose any interest, which they may have in any project opportunity of the Company. Conflicts, if any, will be subject to and governed by laws applicable to directors' and officers' conflicts of interest, including the procedures and remedies available under the BCBCA. The BCBCA provides that, in the event that a director has an interest in a contract or proposed contract or agreement, the director shall disclose his interest in such contract or agreement and shall refrain from voting on any matter in respect of such contract or agreement unless otherwise provided by the BCBCA. The Company is not aware of any existing or potential material conflicts of interest between the Company and any current or proposed director or officer of the Company.


10. Audit Committee Disclosure

Pursuant to the BCBCA and the Canadian Securities Administrators' National Instrument 52-110 - Audit Committees ("NI 52-110"), the Company is required to have an audit committee.

Audit Committee Charter

Pursuant to NI 52-110, the Company's audit committee is required to have a charter. A copy of the Company's Audit Committee Charter is set out in Appendix B to this Annual Information Form.

Composition of the Audit Committee

As at the date of this Annual Information Form, the following is information on the members of the Company's Audit Committee:


Name	Independent	Financial Literacy
Anna Ladd-Kruger (Chair)	Yes	Yes
Ani Markova	Yes	Yes
Hannes Portmann	Yes	Yes
Graham C. Thody	Yes	Yes

Relevant Education and Experience

The following describes the relevant education and experience of the members of the Audit Committee:

Anna Ladd-Kruger - Ms. Ladd-Kruger has held key executive positions at several Canadian publicly listed mining companies, including roles supporting the transition from exploration to production and raising substantial debt and equity. Most recently, Ms. Ladd-Kruger was the Chief Financial Officer of McEwen Mining Inc. where she was brought in to lead financial and operational turnaround strategies and was key to the McEwen Copper Asset spin-out, including serving as its Chief Financial Officer and director. Ms. Ladd-Kruger was previously the Chief Financial Officer of Trevali Mining Corporation, an international base metals mining company where she was part of the original executive management team that grew the company from a junior exploration company into a mid-tier global base metal producer. Ms. Ladd-Kruger previously served as the Chief Financial Officer and VP Corporate Development for a number of mining companies and began her career working at Vale S.A.'s Thompson and Sudbury Canadian operations before joining Kinross Gold Corporation as their North American Group Controller. Ms. Ladd-Kruger currently serves as a director for several publicly listed mining companies. She is a Chartered Professional Accountant (CPA, CMA), holds the Canadian Institute of Corporate Directors designation (ICD.D), a Master’s in Economics from Queen's University and a Bachelor of Commerce from the University of British Columbia. Ms. Ladd-Kruger is currently completing her Certification in Sustainability and ESG for CPA's through CPA Canada.

Ani Markova - With over 25 years of experience in global capital markets, including a successful investment career managing up to $2 billion of mutual fund assets, Ms. Markova has a proven track record in integrating macroeconomic trends, commodity forecasts, equity analysis, and ESG assessments into strategic capital allocations and risk management. She has expertise in finance, economics, and sustainability reporting in addition to critical thinking in complex decision-making processes. She is actively engaged with public companies on ESG topics and provides guidance on ESG integration in enterprise risk management as a CEO of Investor View Advisory and a co-founder of Onyen Corporation, a privately owned technology company focused on ESG reporting solutions. Ms. Markova currently serves as an independent director for Critical Elements Lithium Corporation where she is a chair of the Environmental and Social Responsibility Committee, as well as a member of the Audit and Governance and Nominating Committees. She served as an independent director of Golden Star Resources from September 2019 to January 2022. Ms. Markova holds an MBA from George Washington University in Washington D.C., Chartered Financial Analyst (CFA), Canadian Investment Management (CIM) and Corporate Directors International (CDI.D) designations and ESG Competent Boards Certificate and Designation (GCB.D).

Hannes P. Portmann - Mr. Portmann is a Chartered Professional Accountant and holds a Bachelor of Science in Mining Engineering from Queen's University and a Masters of Management and Professional Accounting from the Rotman School of Management, University of Toronto. He is currently the Chief Financial Officer of Cabot Management Company Limited, a privately owned company involved in the development and operations of master-planned residential, resort and golf club communities. Prior to his current role, he was Chief Financial Officer and Business Development of Marathon Gold Corporation. Mr. Portmann also spent 10 years with New Gold Inc. (and predecessor companies) where he moved into progressively more senior roles, ultimately serving as President and Chief Executive Officer of the intermediate gold producer from January 2017 through May 2018. Previously, as Executive Vice President, Business Development, Mr. Portmann's primary areas of responsibility were: corporate development, investor relations, human resources and exploration. Prior to New Gold Inc., he was a member of the Merrill Lynch investment banking mining group and the assurance and advisory practices of PricewaterhouseCoopers LLP.

Graham C. Thody - Mr. Thody is a retired Chartered Professional Accountant. Mr. Thody has served as a Director and Executive Member of the Lions Gate Hospital Foundation, as well as the Chair of its Finance Committee. He holds a Bachelor of Commerce degree (Marketing) from the University of British Columbia. He was a Partner of Nemeth Thody Anderson, an accounting firm located in Vancouver, British Columbia, from 1979 until his retirement in 2007. His practice focus included audits of reporting companies, corporate finance (including initial public offerings), corporate mergers and acquisitions as well as domestic and international tax matters. He was President and CEO of UEX Corporation from November 2009 until his retirement in January 2014. He has served as a director, audit chair and chairman of several reporting companies involved in mineral exploration and development throughout North and South America.

Reliance on Certain Exemptions

At no time since January 1, 2023, has the Company relied on the following exemptions or provisions under NI 52-110:

(a)the exemption in section 2.4 (De Minimis Non-audit Services);

(b)the exemption in section 3.2 (Initial Public Offerings);

(c)the exemption in subsection 3.3(2) (Controlled Companies);

(d)the exemption in section 3.4 (Events Outside Control of Member);

(e)the exemption in section 3.5 (Death, Disability or Resignation of Audit Committee Member);

(f)the exemption in section 3.6 (Temporary Exemption for Limited and Exceptional Circumstances);

(g)section 3.8 (Acquisition of Financial Literacy); or

(h)an exemption from NI 52-110, in whole or in part, granted under Part 8 (Exemptions).

Audit Committee Oversight

At no time since January 1, 2023, was a recommendation of the Audit Committee to nominate or compensate an external auditor not adopted by the Company's Board.

Preapproval Policies and Procedures for Non-Audit Services

The Audit Committee has specifically approved the auditor's review of the Company's corporate tax returns and other non-audit services for fees of up to C$300,000 for the next fiscal year (2024).

External Auditor Service Fees (By Category)

The aggregate fees billed by the Company's external auditor in each of the last two financial years of the Company for services in each of the categories indicated are as follows:

Financial Year Ended

Audit Fees(1)

Audit Related Fees(2)

Tax Fees(3)

All Other Fees(4)

December 31, 2023

$873,666

Nil

$265,107

Nil

December 31, 2022

$379,222

Nil

(1)Audit fees include fees paid for services rendered by the external auditor in relation to the audit and review of SilverCrest's financial statements and in connection with the Company's statutory and regulatory filings. The 2023 and 2022 fees include amounts for the applicable year's audit services as well as final billings from the previous year's audit.

(2)Pertains to assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements and that are not reported under "Audit Fees".

(3)Pertains to professional services for tax compliance, tax advice, and tax planning. The nature of the services comprising the fees disclosed under this category relates to the preparation of the Corporate Tax Returns of the Company including its subsidiaries, together with related schedules.

(4)The aggregate fees for products and services other than as set out under the headings "Audit Fees", "Audit Related Fees" and "Tax Fees".


11. Legal Proceedings and Regulatory Actions

11.1Legal Proceedings

Except as disclosed below, during the most recently completed financial year, SilverCrest is not a party to any legal proceedings, and there are no legal proceedings to which any of the Company’s property is subject, and no such proceedings are known to the Company to be contemplated.

In December 2023, COMBUSTOLEOS de Sonora, S.A. de C.V. (“Combustoleo”) filed a commercial lawsuit before the Thirteenth District Court in Hermosillo, Sonora against Compania Minera La Llamarada S.A. de C.V.("Llamarada", Mexico subsidiary of SilverCrest) seeking the payment of $218 million Mexican pesos plus $12 million Mexican pesos in accrued interest for the alleged non-performance by Llamarada of its obligations under a services agreement for the delivery and purchase of diesel fuel for operations at Las Chispas. In January 2024, Llamarada filed a statement of defence on the basis that the delivery by Combustoleo and the purchase by Llamarada of diesel fuel were not firm obligations of the parties but conditioned on and subject to the fuel requirements at Las Chispas.

In 2017, Llamarada acquired a ranching property for surface rights known as the Babicanora ranch, which overlays a portion of the Las Chispas mineral concessions. The ranch’s purported original owners subsequently initiated legal proceedings in the First Civil Lower Court in the city of Hermosillo in the State of Sonora, Mexico against all subsequent purchasers of the ranch (including Llamarada as final purchaser) claiming that (1) the initial sale of the ranch to the first purchasers should be held null and void and that all subsequent sales of the ranch should also be held null and void, and (2) the plaintiffs are entitled to compensation for damages derived from mining exploitation activities on the ranch. The Company’s legal position, supported by external Mexican counsel, is that the purchase of the ranch by Llamarada from the registered owner was properly completed in good faith by a registered Notary with receipt of a valid title. The claim does not affect Llamarada’s rights to the underlying mineral concessions at Las Chispas. The Company considers the claim against the ranch property to be without merit.

11.2Regulatory Actions

During the Company's last financial year:

(a)no penalties or sanctions were imposed against the Company by a court relating to securities legislation or by a securities regulatory authority;

(b)no other penalties or sanctions were imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor in making an investment decision in the Company's securities; and

(c)no settlement agreements of the Company were entered into with any court relating to securities legislation or with any securities regulatory authority.


12. Interest of Management and Others in Material Transactions

12.1Interest of Management and Others in Material Transactions

No director or executive officer of the Company and no person or company that beneficially owns, or controls or directs, directly or indirectly, more than 10% of the outstanding Common Shares of the Company, and no associate or affiliate of any of the persons or companies referred to above, has any material interest, direct or indirect, in any transactions since January 1, 2021, that has materially affected or is reasonably expected to materially affect the Company or any of its subsidiaries.


13. Transfer Agent and Registrars

13.1Transfer Agent and Registrars

Computershare Investor Services Inc. (at its principal transfer offices in Vancouver, British Columbia and Toronto, Ontario) is the transfer agent and registrar for the Common Shares of the Company.


14. Material Contracts

14.1Material Contracts

Other than the following contract, available on SEDAR+ (www.sedarplus.ca), there are no contracts that are material to the Company that were entered into within the last financial year of the Company or before the last financial year but is still in effect (other than contracts entered into in the ordinary course of business of the Company):

(a)Credit agreement dated November 29, 2022 among the Company (as borrower) and a syndicate of lenders comprised of the Bank of Nova Scotia (the Administrative Agent) and the Bank of Montreal in respect of a US$120 million senior secured credit facility.


15. Interests of Experts

15.1Technical Report Authors

Kevin Murray, P.Eng., Scott Weston, P. Geo., Wynand Marthinus Marx, Fellow SAIMM, Patrick Langlais, P.Eng., Michael Verreault, P. Eng., Ben Peacock, P. Eng., Jarita Barry, P. Geo., David Burga, P. Geo., Eugene J. Puritch, P. Eng., William Stone, P. Geo., Yungang Wu, P. Geo., Christopher Lee, P. Eng., and Humberto F. Preciado, P.E., independent qualified persons, are the authors of the "Las Chispas Operation Technical Report", dated September 5, 2023, with an effective date of July 19, 2023 and filed on SEDAR+ at www.sedarplus.ca.

N. Eric Fier, CPG, P. Eng, is the qualified person who has reviewed and approved the scientific and technical information relating to the Company's mineral properties disclosed in this Annual Information Form.

To the best of the Company's knowledge, other than Mr. Fier, no registered or beneficial interest, direct or indirect, in any securities or other property of the Company was held by the experts listed above when the particular expert's report was prepared, was received by such expert after the preparation of the report, or will be received by such expert. As of the date of this AIF, Mr. Fier holds, directly or indirectly, 4,010,075 common shares of the Company, 624,500 options to acquire common shares of the Company, 54,850 performance share units (each convertible into common shares of the Company) and 81,199 restricted share units (each convertible into common shares of the Company).

15.2Auditors

The audit of the consolidated financial statements and the Company's internal control over financial reporting is conducted in accordance with Public Company Accounting Oversight Board (“PCAOB”) standards. The Company’s independent registered public accounting firm is PricewaterhouseCoopers LLP, Chartered Professional Accountants (“PwC”), who have issued a Report of Independent Registered Public Accounting Firm dated March 11, 2024 in respect of the Company’s consolidated financial statements as at December 31, 2023 and December 31, 2022 and the Company's internal control over financial reporting as at December 31, 2023. PwC has advised that they are independent with respect to the Company within the meaning of the Chartered Professional Accountants of British Columbia Code of Professional Conduct and the rules of the U.S. Securities and Exchange Commission (SEC) and the PCAOB on auditor independence.


16. Additional Information

Additional information relating to the Company may be found on SEDAR+ at www.sedarplus.ca (For avoidance of doubt, unless specifically noted, no items from this or other websites mentioned in this AIF, are incorporated by reference).

Additional information in respect of 2023, including directors' and officers' remuneration and indebtedness, principal holders of the Company's securities and securities authorized for issuance under equity compensation plans, is contained in the Company's information circular for the Company's annual general meeting of shareholders anticipated to be held on June 12, 2024. Such information for 2022 is contained in the Company's information circular dated April 28, 2023, for the Company's last annual general meeting of shareholders held on June 15, 2023.

Additional information is provided in the Company's audited consolidated financial statements and management's discussion and analysis for the financial year ended December 31, 2023.

APPENDIX A

1.1 Introduction

SilverCrest Metals Inc. (SilverCrest or the Company) commissioned Ausenco Engineering Canada Inc. (Ausenco) to compile an Operating Technical Report (the Report) on the Las Chispas Operation (the Las Chispas Operation), located in Sonora, Mexico. The effective date (the Effective Date) of the Report is July 19, 2023.

This Report has been prepared for SilverCrest to conform to the regulatory requirements of Canadian National Instrument (NI) 43-101 using the form 43-101 F1 Standards of Disclosure for Mineral Projects.

The responsibilities of the engineering companies contracted by SilverCrest to prepare this Report are as follows:

•Ausenco managed and coordinated the work related to the Report, reviewed the metallurgical test results, Process Plant operating performance and cost estimates for the Process Plant infrastructure, general site infrastructure, and economic analysis.

•Ausenco Sustainability Inc. conducted a review of the environmental studies and permitting information for the Las Chispas Operations.

•BBE Group Canada (BBE) completed the underground mine ventilation design, including capital cost inputs for fixed installation fans, auxiliary fans for ramp development, mobile refuge bay installations and bulkheads for emergency escapes.

•Entech Mining Ltd. (Entech) developed the Mineral Reserve Estimate, the mine design, mine production schedule, and mining costs including capital development and mine operating costs.

•Hydro-Ressources Inc (HRI) completed a review of the site hydrological data.

•Knight Piésold Ltd. (KP) completed geotechnical studies.

•P&E Mining Consultants Inc. (P&E) completed the work related to property description, accessibility, local resources, geological setting, deposit type, exploration work, drilling, exploration works, sample preparation and analysis, data verification and the Mineral Resource Estimate.

•WSP Canada Inc. completed the design for process water, electrical systems, mine dewatering, underground fuel distribution and other underground services, and provided capital cost inputs for process water, mine dewatering, compressed air, electrical systems and communications.

•WSP USA Inc. completed the site wide water balance and developed the design and cost estimate for the tailings storage facility.

1.2 Terms of Reference

The Report supports disclosures by SilverCrest in the news release dated July 31, 2023, entitled “SilverCrest Announces Results of Updated Independent Technical Report”.

The firms and consultants who are providing Qualified Persons (QPs) responsible for the content of the Report are, in alphabetical order, Ausenco Engineering Canada Inc. and Ausenco Sustainability Inc. (Ausenco), BBE Group Canada (BBE), Entech Mining Ltd. (Entech), Hydro-Ressources Inc. (HRI), Knight Piésold Ltd. (KP), P&E Mining Consultants Inc. (P&E), WSP Canada Inc. and WSP USA Inc.

All units of measurement in the Report are metric, unless otherwise stated. The monetary units are in US dollars, unless otherwise stated.

Mineral Resources and Mineral Reserves are reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (the 2014 CIM Definition Standards).

1.3 Project Setting

The City of Hermosillo is approximately 220 km southwest of the Las Chispas Operation, or a three-hour drive; Tucson, Arizona is approximately 350 km northwest of the Las Chispas Operation, or a five-hour drive; and the community and large copper mine in Cananea is located approximately 150 km to the north along Highway 89, or a two-and-a-half-hour drive. The closest villages are Banamichi, 25 km to the southwest, and Arizpe, located approximately 12 km to the northeast. The closest resident to the Las Chispas Operation, a single ranch house, is 10 km to the west.

Mining supplies and services are readily available from the towns of Cananea, Hermosillo, and Tucson. Labour and skilled workforces exist in the nearby communities, including Banamichi and Arizpe, for which transportation routes

have been established to support the mining operation. A 500-bed accommodation camp is available at the Las Chispas Operation and housing is also available in the nearby communities.

The Las Chispas Operation is connected to the national electricity grid vias a 33 KV power line with an overall capacity of 7.6 MW. This capacity is sufficient for the LOM.

The Las Chispas Operation is accessed from the community of Arizpe via secondary gravel roads, approximately 10 km off the paved highway. The Sonora River crossing is possible via the recently built 171 m Tetuachi Bridge. The remainder of the road has been upgraded to support both construction and operation-related traffic.

The climate is typical for the Sonoran Desert, with a dry season from October to May. Seasonal temperatures vary from approximately 0°C to 40°C. Average rainfall is estimated at 300 mm/year but can vary substantially. Operations are being conducted year-round.

The Las Chispas Operation is located on the western edge of the north-trending Sierra Madre Occidental Mountain range geographically adjacent to the Sonora Valley. Surface elevations range from 950 metres above sea level (masl) to approximately 1,375 masl.

Drainage valleys generally flow north to south, and east to west towards the Sonora River. During the rainy season, flash flooding can occur in the area.

Vegetation is scarce during the dry season and limited primarily to juvenile and mature mesquite trees and cactus plants. During the wet season, various blooming cactus, trees, and grasses are abundant in drainage areas and on hillsides.

1.4 Property Description and Location

The Las Chispas Property consists of 28 mineral concessions, totalling 1,400.96 ha, which are held by SilverCrest’s Mexico subsidiary Compañía Minera La Llamarada S.A. de C.V. (LLA). Concessions have expiry dates that run from 2039-2073. One concession is in the grant process, and one concession is the subject of legal proceedings following cancellation. The mineral concessions that host the Mineral Resources and Mineral Reserves are in good standing. At the Report Effective Date, all required mining duties were paid.

The surface rights overlying the Las Chispas Property mineral concessions and road access from local highway are either owned by LLA or held by LLA under a negotiated 20-year lease agreement with the Ejido Bamori. LLA has purchased the Cuesta Blanca and Babicanora ranches and signed a 20-year lease agreement for a portion of the Tetuachi Ranch. Surface rights are sufficient for the proposed life of mine (LOM) plan and include the locations of necessary infrastructure as presented in the Report. On February 2, 2023, LLA purchased the La Higuerita Ranch situation in the municipality of Arizpe, Sonora.

A 2% royalty is payable on the Nuevo Lupena and Panuco II concessions for material that has processed grades of ≥0.5 oz/tonnes gold and ≥ 40 oz/tonnes silver, combined. These concessions do not include Mineral Reserves.

This Report assumes that production water will be from the 900 level (900 m from surface or 850 masl) of the historical Las Chispas Mine and from the Sonora Valley within the Las Chispas Property limit and near the main access road to the site. This combined source of water is considered representative of the regional water table, has been tested, and is adequate in quantity and quality for exploration and production purposes. LLA has sufficient water rights for operations.

1.5 History

Historic records indicated mining around the Las Chispas Operation area started as early as the 1640s. There are incomplete historic records available on mining activities in the 1800s and 1900s. Numerous small mines were operated during the period 1900–1930. There is a gap in mining activity records for Las Chispas between the mid-1930s through to 1974. A small mill operated offsite from 1974 to 1984, treating material from historic mine dumps.

Minefinders Corporation Ltd. (Minefinders) conducted geological mapping and a geochemical sampling program comprising stream sediment and bulk-leach extractable gold (BLEG) samples, underground and surface rock chip sampling, and drilling of seven (7) reverse circulation (RC) drill holes (1,842.5 m) to test potential mineralization adjacent to the Las Chispas mineralized northwest-southeast trend. Drill results were not encouraging.

SilverCrest’s subsidiary obtained the rights to the Las Chispas Operation area in 2015. Exploration work completed to the Effective Date includes 2,840 (690,124 m) core drill holes, surface and underground mapping and sampling, rehabilitation of underground workings, auger and trench sampling of historic mine dumps, Mineral Resource estimations, environmental baseline and supporting studies, initiation of permitting activities, metallurgical testwork approximately 9 km of underground development and completion of a Preliminary Economic Assessment (the PEA)

(Tetra Tech, 2019) and completion of a “NI 43-101 Technical Report & Feasibility Study on the Las Chispas Project” (2021 FS Report) (Ausenco, 2021).

1.6 Geological Setting and Mineralization

Mineral deposits in the Las Chispas district are classified as gold and silver, low to intermediate sulphidation epithermal systems, typical of many deposits in Sonora, Mexico.

In northwestern Mexico, much of the exposed geology can be attributed to the subduction of the Farallon Plate beneath the North American Plate and related magmatic arc volcanism. The host rocks to mineralization in the Las Chispas district are generally pyroclastic, tuffs, and rhyolitic flows interpreted to be members of the Lower Volcanic Complex. Locally, volcanic pyroclastic units mapped within the underground workings include rhyolite, welded rhyodacite tuff, lapilli (lithic) tuff, and volcanic agglomerate.

All rock types in the Las Chispas Operation area show signs of extensive hydrothermal alteration. Thin section and TerraSpec™ hyperspectral studies identified alteration consistent with argillic and advanced argillic alteration. Alteration minerals identified include smectite, illite, kaolinite, chlorite, carbonate, iron oxy/hydroxides, probable ammonium, gypsum/anhydrite, silica, and patch trace alunite.

Generally, the host rocks are above the existing water table. Oxidation of sulphides is observed from near-surface to depths greater than 300 m and the presence of secondary minerals is recorded from the Las Chispas historic underground workings approximately 60 m to 275 m in depth from the surface. Strong and pervasive near-surface oxidation is noted to occur in the Babicanora Area, where host rocks experienced faulting and advanced weathering to limonite, hematite, and clays.

Regionally, the Las Chispas Operation is situated in an extension basin related to a Late Oligocene half-graben of the Sonora River Basin. Multiple stages of normal faulting affect the basin. The main structures are steep, west-dipping (80°) and sub-parallel to the Santa Elena-Las Chispas normal fault, which is located along the western margin of the Las Chispas Operation, striking approximately 210°. The basin is further cross-cut by younger northwest–southeast trending normal faults that dip to the southwest, creating both regional and local graben structures. Locally, the graben structures are complicated by the effects of probable caldera collapse. Three structural controls, excluding bedding contacts, are considered to influence alteration and mineralization:

•150–170° striking and are inclined at approximately 65–75° to the southwest

•340–360° striking and are inclined 75° west to 75° east; and

•210–230° striking and are inclined 70–85° to the northwest.

Mineralization is hosted in hydrothermal veins, stockwork, and breccia. Emplacement of the mineralization is influenced by fractures and low-pressure conduits formed within the rocks during tectonic movements. Mineralization can be controlled lithologically along regional structures, local tension cracks, and faulted bedding planes. Brecciated mineralization formed in two ways: 1) in zones of low pressure as hydrothermal breccia; and 2) as mechanical breccias. These breccia types are interpreted to occur at the intersection of two or more regional structural trends. The mineralization is 0.10–10 m in true width, and typically encompasses a central quartz ± calcite mineralization corridor with narrow veinlets within the adjacent fault damage zone. Stockwork and breccia zones are centred on structurally controlled hydrothermal conduits.

Generally, it appears that epithermal mineralization is higher in the system (closer to the paleo-surface) on the west side (e.g., La Victoria Vein and historic mine) of the Las Chispas district compared to the east side (e.g., Granaditas Vein and historic mine), where there is an observed increase in base metal content.

Silver mineralization visually dominates over gold throughout the Las Chispas Operation. Acanthite is the principal silver mineral. Electrum and native silver can be present. Silver is associated with galena, pyrite ± marcasite and chalcopyrite. Gold occurs as electrum, native flakes and in association with pyrite and chalcopyrite. Locally, gold and silver values have a strong correlation with each other. Base metal contents are low in veins.

The Las Chispas Operation is divided into the Las Chispas Area and the Babicanora Area, and currently has 62 epithermal veins, not including seven bifurcations. Mineral Resources were estimated for 38 veins, including bifurcations and Mineral Resources were estimated for 38 veins, including bifurcations, and Mineral Reserves were estimated for 19 veins, including HW, FW and splays, of which six veins (Babicanora Main, Babicanora FW, Babicanora Norte, Babicanora Sur, Babi Vista and Las Chispas) contain the majority of the Mineral Reserves.

1.7 Drilling and Sampling

SilverCrest completed several drilling program phases from 2016-2023.

SilverCrest completed their Phase I and Phase II drilling programs between March 2016 and February 2018. The Phase III drilling program included drilling up to February 2019. The Phase III Extended drilling program, starting in

February 2019, focused on in-fill and expansion drilling and was completed on October 16, 2020, with a total of 309,383 m of drilling in 1,137 drill holes. Phase IV included drilling from October 2020 to June 2022, and focused mainly on infill and expansion of known veins with a total of 198,926 m of drilling in 1,041 drill holes, this Phase is known as the “Resource and Reserve” or “R&R Drill Program”. Phase V includes drilling from June 2022 to March 2023, which focused on expansion drilling for Inferred Mineral Resources with a total of 64,755 m of drilling in 223 drill holes. From the start of drilling in March 2016 to March 2023, a total of 2,840 drill holes were completed for 690,124 m drilled with 247,033 samples collected for geochemical analysis. Drilling data to March 21, 2023 was used in the Mineral Resource Estimate and to June 30, 2022, in the Mineral Reserve Estimate.

The Phase I drilling program targeted near-surface mineralization, lateral extensions of previously mined areas, and potential deep extensional mineralization proximal to the historic workings. The Phase II drilling program focused on surface drilling at the Las Chispas, Babicanora, William Tell, and Giovanni veins and on underground drilling at the Las Chispas and Babicanora veins. The Phase III drilling program focused on surface drilling at the Babicanora, Babicanora FW, Babicanora HW, Babicanora Norte, Babicanora Sur, Granaditas, Luigi, and Giovanni veins and underground drilling at the Las Chispas veins. The Phase III Extended drilling program was an infill program to support potential confidence category upgrades, and test for expansion of multiple veins.

Phase IV drilling targeted the Babicanora Main, Babicanora Norte, Babicanora Sur, Babi Vista, Encinitas, Amethyst and Las Chispas vein systems. Phase V focused on expansion drilling along the Babicanora Norte, Babicanora Sur, Ranch, La Victoria, Espíritu Santo, and Babi Vista vein systems.

Surface collar locations were initially surveyed using a handheld global positioning system (GPS) unit and then professionally surveyed by a local contractor. A survey was completed by external consultant David Chavez Valenzuela in October 2018. This survey was performed using a GNSS Acnovo GX9 UHF instrument. The remainder of the drill hole collar surveys done until December 2019 were completed by Precision GPS S.A. de C.V. (Precision GPS) from Hermosillo, Sonora, Mexico, using a Trimble VX10 Total Station and a Trimble R8 GNSS GPS RTK system. Starting on January 2020, surveys have been conducted by Llamarada personnel using a Trimble R8 GNSS GPS RTK system. The survey provided drill collar locations, information on roads, and additional detail on property boundaries.

Until December 2019, underground exploration drill hole collars were surveyed by Precision GPS using the underground control points established for each of the workings. Starting in January 2020 all collars were surveyed by Llamarada personnel. All holes were downhole surveyed as single-shot measurements with a Flex-it tool starting at 15 m with measurements at every 50 m to determine deviation. The survey measurements were monitoring downhole deviations and significant magnetic interference from the drill rods that would prevent accurate readings.

For any newly discovered veins, the first 10 drill holes are completely sampled. Additional drill holes could be entirely sampled, if such sampling were needed to establish a greater understanding of geology and mineralization. Sample intervals were laid out for mineralization, veining, and structure. Approximately 10 m before and after each mineralization zone was included in the sampling intervals. A minimum of 0.5 m sample lengths of mineralization material was taken up to a maximum of 3 m in non-mineralization rock. Each sample interval was either split using a hand splitter or cut using a wet core saw, perpendicular to veining, where possible, to leave representative core in the box and to reduce any potential bias in the sampled mineralization submitted with the sample.

Chip samples and/or channel samples were collected from historic underground workings and newly developed in-vein drifting. A total of 8,178 underground channel sample results were collected as of the data cut-off date. In Babicanora Main vein system, approximately 4 km of strike length were developed and sampled, with most of it in the Babicanora Main vein. In the Babicanora Norte vein system, approximately 850 m of strike length were developed and sampled. In Babi Vista vein system, approximately 500 m were developed and sampled.

SilverCrest’s approach to grade control sample collection on the face of in-vein drifting consists of the following steps. Underground continuous channel samples were marked horizontally across the face by a geologist, based on mapping, per lithology or mineralization contacts, using spray paint prior to sample collection. Sample lengths varied by width of the geological contact and were set to a minimum of 0.30 m in mineralization to a maximum of 1.5 m in waste. Two long cuts 5 cm deep and separated by 10 cm were made parallel to the sample line using a pneumatic rock saw. Then, several short cuts perpendicular to the sample line were made at the contacts and between contacts. The rock is removed from the channel using a small sledge hammer and hand maul, or pneumatic chipper, and placed on a small tarp on the floor. The channel is inspected by the geologist for uniform width and depth across the sample, and to verify that the minimum sample mass is 1 kg. Samples are collected and placed into clear plastic sample bags with a sample tag, secured with a zip tie, labeled, and stored in a fenced and locked facility at the Mine, prior to being transported by SilverCrest to SGS Arizpe for analysis.

A total of 641 bulk density measurements were collected on site by SilverCrest using the water immersion method. Seventy-two (72) samples were tested by ALS Chemex (ALS) based in Hermosillo, Mexico for wax-coated bulk density to validate the on-site measurements.

In November 2018, two samples were collected and sent by SilverCrest to Geotecnia del Noroeste S.A. de C.V. based in Hermosillo, for wax coated dry bulk density testing. The bulk density ranged from 1.53 to 4.02 t/m3 with a mean value of 2.52 t/m3. A uniform mean bulk density of 2.55 t/m³ was applied to all rock types in the Mineral Resource Estimate, based on the results of the bulk density test work completed by SilverCrest and the two laboratories.

All samples collected from drilling were assayed by ALS in Hermosillo, ALS in Vancouver, BC, Canada, and Bureau Veritas Minerals Laboratories (Bureau Veritas, formally Inspectorate Labs) in Hermosillo. Check assays were performed by SGS de Mexico S.A. de C.V in Durango, Mexico (SGS Durango). These drill core samples were crushed to 75% (ALS) or 70% (Bureau Veritas) minus 2 mm, then mixed and split with a riffle splitter. A split from all samples was then pulverized to 80% (ALS) or 85% (Bureau Veritas) -75 µm. All pulverized splits were submitted for multi-element aqua regia digestion with inductively coupled plasma (ICP)-mass spectrometry (MS) detection, and for gold fire assay (FA) fusion with atomic absorption spectroscopy (AAS) detection. Samples returning assay grades >100 gpt Ag from ICP analysis were re-run using aqua regia digestion and ICP-atomic emission spectroscopy (AES) detection and diluted to account for grade detection limits (<1,500 gpt). Where Ag grades were ≥1,500 gpt, the sample was re-run using FA with gravimetric detection. During the Phase II drilling program, where gold values >1 gpt, the samples were re-run using FA with gravimetric detection, and where gold values were >10 gpt, the samples were re-run using 30 g FA with AAS detection. Samples returning grades >10,000 ppm Zn, Pb, or Cu from ICP-MS analysis were re-run using aqua regia digestion with ICP-AES finish.

SGS entered into Agreement with SGS de Mexico S.A. de C.V, a subsidiary of the global SGS SA, to design and operate a sample preparation and analytical laboratory in the nearby community of Arzipe, Mexico. The facility commenced operations and receiving grade control samples from Las Chispas in April, 2022. When fully certified, the laboratory will also serve as the primary analytical facility to support exploration activities.

SilverCrest delivered all samples collected from underground mine as channels, chips or mucks to the SGS Arizpe facility for preparation as follows: These samples were received, registered, dried at 105°C, and weighed. All samples were then crushed to 75% <2 mm, homogenized and a 500 g split generated with a riffle splitter. The 500 g split was pulverized to ≥85% <75µm (the “primary pulp”). Only channel samples collected from underground ore development headings were submitted for 34 element trace analysis, using the following procedures. A 1 g split was collected from the primary pulp and dissolved with Aqua Regia at a 3:1 ratio. The solution was analyzed using ICP-OES. Overlimits analysis using ICP-OES was conducted on samples containing >10,000 ppm Cu, Pb, and Zn.

All samples collected from the underground were submitted for gold and silver analysis by Fire Assay and Atomic Absorption Spectrometry (AAS), using method (GO_FAG37V). A 30 g split was collected from the primary pulp and fused with lead oxide flux at 1,100°C and any gold or silver in the sample was extracted into a lead button. The lead was removed by cupellation, resulting in a gold and silver bead. The dore bead was then dissolved with HCl and HNO3.

The solution was analyzed using AAS for Au with a lower detection limit of 0.01 gpt, and upper limit of 100 gpt, and Ag with a lower detection limit of 10 gpt. Samples exceeding 100 gpt Au were then tested using by Fire Assay and Gravimetric measurement, using method (GO_FAG33V). A 30 g split was collected from the primary pulp and fused with lead oxide flux at 1,100°C any gold or silver in the sample was extracted into a lead button. The lead was removed by cupellation, resulting in a gold and silver bead. The doré bead was dried and then weighed with a micro-balance. The doré bead was dissolved with HCl and HNO3. The residual solid gold was dried and measured by micro-balance using the gravimetric method with a lower detection limit of 0.5 gpt. Silver determined by difference in mass, with a lower detection limit of 10 gpt.

The quality assurance/quality control (QA/QC) program consisted of certified reference material (CRM), and blank sample insertions at a rate of 1:50 for all sample types being collected, and insertion of duplicate samples for some underground chip samples, core pulps and coarse rejects. CDN Resource Laboratories Ltd. was the source of the CRMs. The blank samples were collected from a local silica cap.

The sample preparation, analysis, and security program implemented by SilverCrest was designed with the intent to support collection of a large volume of data. Sample collection and handling routines were well-documented. The laboratory analytical methods, detection limits, and grade assay limits are suited to the style and grade of mineralization. The QA/QC methods implemented by SilverCrest enabled assessment of sample security, assay accuracy, and potential for contamination. The QP reviewed sample collection and handling procedures, laboratory analytical methods, QA/QC methods, and QA/QC program results and considers these methods are adequate to support the current Mineral Resource Estimate.

1.8 Data Verification

SilverCrest developed an extensive dataset that is saved and managed using Geospark™ management software. The QP reviewed the data compilation and audited the Geospark™ database. The QP conducted verification of the Las Chispas Operation databases for gold and silver by comparison of the database entries with assay certificates in

comma-separated values (CSV) file format, obtained directly from ALS Webtrieve™. Assay data were verified for five separate datasets: Las Chispas, Las Chispas Underground, Babicanora Underground, William Tell Underground and Babi Vista.

The QP also validated the drill hole database by checking for inconsistencies in analytical units, duplicate entries, interval, length or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, survey, and missing interval and coordinate fields. A few errors were identified and corrected in the database.

The QP considers the database provided by SilverCrest to be reliable and does not consider the few minor discrepancies encountered during the verification process to be of material impact to the data supporting the Mineral Resource Estimate.

Site visits and independent sampling programs for assay data verification were completed in November 2020 and March 2022. The assay results for the independent site visit samples match closely to the SilverCrest data for both gold and silver and the QP considers the due diligence results to be acceptable.

Based upon the evaluation of the QA/QC program undertaken by SilverCrest, and the QPs due diligence sampling and database verification, it is the QP’s opinion that the data are robust and suitable for use in the current Mineral Resource Estimate.

1.9 Mineral Processing and Metallurgical Testing

Mineral deposits in the Las Chispas district are classified as gold and silver, low-to intermediate sulphidation epithermal systems, typical of many deposits in northeastern Sonora and is mined using variations of longhole stoping and cut and fill mining methods via several access drifts and ramps. Ore is processed through a primary jaw crusher, SAG mill in closed circuit with hydrocyclones, cyanide leaching, Merrill-Crowe metal recovery, and tailings filtration. Following startup, the Las Chispas Operation adopted a strategy that involves a whole leach at ~1,500 mg/L CN with the flotation and concentrate leach circuits bypassed. Operating data from the whole ore leach is achieving throughput and recoveries at or above flotation & concentrate leach testwork values on similar material presented in the 2021 FS Report and demonstrated in Figure 1‑1 and Figure 1‑2.

The current operating strategy is providing the best economic value with gold and silver recoveries ranging from 93% to 99% and 86% to 99% with weighted averages of 98% and 97%, respectively.

Figure 1‑1 resents the daily gold and silver recoveries and Figure 1‑2 presents the daily tonnes processed since January 1, 2023.

Figure 1‑1: Daily Operating Gold and Silver Recoveries at Las Chispas

Source: Ausenco, 2023.

Figure 1‑2: Daily Dry Tonnes Processed since January 1, 2023, Excluding Scheduled Down Days

Source: Ausenco, 2023.

1.10 Mineral Resource Estimate Summary

The Mineral Resource Estimate presented in the Report includes in-situ narrow vein gold and silver mineralization at the Babicanora and Las Chispas Areas, and gold and silver mineralization contained within run-of-mine (ROM) stockpiles and historic operations surface stockpiles.

The data cut-off dates supporting this Mineral Resource Estimate in the Babicanora Area are June 30, 2022 for the definition drilling and underground channel sample databases, July 31, 2022 for the exploration drilling database, which were used for the Indicated Mineral Resource Estimate, and March 21, 2023 for the exploration drilling database used for the Inferred Mineral Resource Estimate; whereas the cut-off date in the Las Chispas Area is October 16, 2020, due to no additional work being completed in this area since October 16, 2020. The surface stockpile estimate have a cut-off date of June 30, 2022.

The effective date of this Mineral Resource Estimate is June 30, 2022, for Measured and Indicated Mineral Resources of the vein mineralization and surface stockpiles, and March 21, 2023, for Inferred Mineral Resources.

This Mineral Resource Estimate of the Babicanora Area was undertaken with Leapfrog™ software by SilverCrest, and was independently reviewed, verified and accepted using GEOVIA GEMS™ v.6.8.2 software by P&E Mining Consultants Inc. (P&E), Brampton, Ontario. The Mineral Resource Estimate of the Las Chispas Area was performed in 2020 by Messrs. Wu and Puritch, who are independent of SilverCrest as defined in NI 43-101. The QPs are of the opinion that the supplied database is suitable for Mineral Resource estimation.

The database supporting this Mineral Resource Estimate consisted of surface drill holes, underground drill holes and underground channel and chip samples for the in-situ narrow veins in both the Babicanora and Las Chispas Areas, and surface channel and RC samples for the historic surface stockpiles. All drill hole survey and assay values are expressed in metric units, with grid coordinates reported using the WGS84, zone 12N UTM system.

The mineralized vein wireframes were interpreted and constructed by SilverCrest using Seequent Limited Leapfrog® and the QPs reviewed the vein models. Some adjustments to the wireframes were made as a result of the reviews, and the QPs consider the wireframes to reasonably represent the assay data and are suitable for Mineral Resource estimation.

In the Babicanora Area, a total of 43 unclipped wireframes were developed to represent the mineralized veins, bifurcations and splays. The Babicanora veins were modelled as true width and were not subjected to a minimum mining width. The “unclipped” solids were clipped to include mineralization areas with ≥150 gpt AgEq (where AgEq = Ag gpt + (Au gpt * 86.9)). In the Las Chispas Area, a total of eight mineralized vein wireframes were created that were constrained to a minimum thickness of 0.5 m true width. The “unclip” solids were manually clipped to include mineralized areas with ≥150 gpt AgEq (where AgEq = Ag gpt + Au gpt * 75).

A depletion wireframe model was developed to represent areas with excavations from historic mining in the Las Chispas Area and they were excluded from the Mineral Resource Estimate. All mineralized veins were clipped and removed above a topographic surface supplied by SilverCrest. The historic mined areas and internal waste zones created by SilverCrest were clipped and removed from the related vein wireframes.

Due to the nature of the narrow veins and in order to regularize the assay sampling intervals for grade interpolation, a 0.5 m compositing length was selected for the drill hole intervals that fell within the constraints of the above-mentioned vein wireframes.

Grade capping and high-grade transition analyses were undertaken on the 0.5 m composite values in the database within the constraining wireframes to control possible bias resulting from erratic high-grade composites in the database, and to maintain the high-grade local variation. The high-grade transition consists of a restrictive search ellipse and a maximum limiting composite value.

In the Babicanora and Las Chispas Areas, drill hole and channel sample log-probability plots for gold and silver composites were generated by SilverCrest for each mineralization vein to establish capping levels. The capped composites were utilized to develop variograms and for block model grade interpolation and classification.

A variography analysis was performed by SilverCrest using the gold and silver composites within each individual vein wireframe, as a guide to determining a grade interpolation search distance and ellipse orientation strategy. Continuity ellipses based on the observed ranges were subsequently generated and utilized as the basis for grade estimation search ranges, distance weighting calculations and Mineral Resource classification criteria.

A total of 641 bulk density measurements were collected on-site from drill core by SilverCrest using the water immersion method. The bulk density ranged from 1.53 to 4.02 t/m3 with a mean value of 2.52 t/m3. A uniform mean bulk density of 2.55 t/m³ was applied to all in-situ rock types in the Mineral Resource Estimate.

The block models for the Babicanora Area were constructed by SilverCrest using Leapfrog™ software. The block models for the Las Chispas Area were independently created by the QPs using GEOVIA GEMS™ V6.8.2 modelling software during the October 2020 Mineral Resource Estimate.

In the Babicanora Area, the gold and silver grade values were interpolated into the grade blocks using inverse distance weighting to the third power (ID3). A variable orientation search was utilized for all the main veins. The high-grade transition was utilized for the grade interpolation, in order to mitigate the high-grade influence.

The QPs are of the opinion that the block models of the Babicanora Area and the Las Chispas Areas are suitable for reporting a Mineral Resource Estimate.

In the Las Chispas Area, the gold and silver grade values were interpolated into the blocks using inverse distance weighting to the third power (ID3).

The Mineral Resource was classified as Measured, Indicated, and Inferred based on the geological interpretation, variogram performance and drill hole spacing. A Measured Mineral Resource was classified for the Babicanora underground sampled area only with a 10 m range extended up- and down-dip from areas with underground in-vein development samples and interpolated with both underground channel and chip samples and drill holes. An Indicated Mineral Resource was classified with at least two drill holes within a 50 m mean distance. An Inferred Mineral Resource was classified for all remaining grade blocks within the mineralized veins. ROM stockpiles which were derived from the underground vein mining were classified as Measured Mineral Resources, and the historic stockpiles were categorized as Indicated Mineral Resources. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

The following parameters were used to calculate the AgEq cut-off values that determine the underground mining potentially economic portions of the constrained mineralization:

•Ag price: $21/oz (approximate three-year trailing average as of June 30, 2022)

•Ag process recovery: 94%

•Marginal mining cost: $40/t

•Processing cost: $40/t

•G&A: $15/t.

The AgEq cut-off value of the underground Mineral Resource is calculated as follows:

•($40+ $40+$15)/($21/31.1035 x 94%) = ~150 gpt AgEq

The AgEq cut-off value of the historic stockpiles is 110 gpt without the mining cost.

Table 1‑1: Mineral Resource Estimate Statement for Depleted In-Situ Vein, ROM Stockpile and Historic Surface Stockpiles


Resource Area	Classification	Tonnes	Au	Ag	AgEq	Contained Au	Contained Ag	Contained AgEq
		(k)	(gpt)	(gpt)	(gpt)	(k oz)	(k oz)	(k oz)
Babicanora Area Veins	Measured	206.6	13.67	1,289	2,376	90.8	8,561	15,779
	Indicated	1,726.3	7.09	658	1,222	393.6	36,540	67,832
	Meas + Ind	1,932.9	7.79	726	1,345	484.3	45,101	83,611
Las Chispas Area Veins	Indicated	441.6	4.22	552	888	60.0	7,835	12,605
Total Undiluted Veins	Meas + Ind	2,374.5	7.13	693	1,260	544.3	52,936	96,216
Historic Stockpiles	Indicated	151.8	1.14	112	203	5.6	546	990
ROM Stockpiles	Measured	168.1	5.56	428	869	30.0	2,311	4,699
Total (Veins + Stockpiles)	Meas + Ind	2,694.4	6.69	644	1,176	579.9	55,794	101,905
Babicanora Area Veins	Inferred	953.5	4.49	267	624	137.5	8,188	19,123
Las Chispas Area Veins	Inferred	373.6	1.81	274	418	21.7	3,296	5,024
Total Undiluted Veins	Inferred	1,327.1	3.73	269	566	159.2	11,484	24,147

Notes:

1.Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

2.The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

3.The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

4.The Mineral Resource is estimated using the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.

5.The effective date for Measured + Indicated estimate of the veins and stockpiles was June 30, 2022, while Inferred estimate for the veins was effective March 21, 2023.

6.Mined areas as of June 30, 2022, were removed from the wireframes and block models.

7.AgEq is based on Ag:Au ratio of 79.51:1 calculated using $1,650/oz Au and $21/oz Ag, with average metallurgical recoveries of 97.9% Au and 96.7% Ag, and 99.9% payable for both Au and Ag.

8.Mineral Resources are inclusive of the Mineral Reserves.

9.All numbers are rounded.

10.Cut-off grade (COG) used for In-situ material is 150 gpt AgEq and, for Historic stockpiles is 110 gpt AgEq. No cut-off grade was applied to ROM stockpile as it is based on material mined.

1.11 Mineral Reserve Estimate

The Mineral Reserve estimate was completed for underground mining of in-situ vein deposits at the Babicanora and Las Chispas Areas and for surface extraction of stockpiles from historical and current operations. All drilling, surveying and assay databases were provided by SilverCrest, including data up to the cut-off date of June 30, 2022 for Measured and Indicated Mineral Resources. The Mineral Reserve Estimate is provided in Table 1‑2.

Table 1‑2: Mineral Reserve Estimate


Area	Classification	Tonnes (k)	Au (gpt)	Ag (gpt)	AgEq (gpt)	Contained Au (koz)	Contained Ag (koz)	Contained AgEq (koz)
Babicanora	Proven	345	7.03	665	1,224	78	7,382	13,589
	Probable	2,334	3.9	370	679	292	27,734	50,987
Las Chispas	Proven	-	-	-	-	-	-	-
	Probable	401	3.09	399	645	40	5,152	8,323
Babicanora + Las Chispas	Proven + Probable	3,081	4.14	407	736	410	40,269	72,899
ROM Stockpile	Proven	168	5.56	428	869	30	2,311	4,699
Historic Stockpile	Proven	150	1.14	112	203	6	541	980
Total Stockpile	Proven	318	3.47	279	555	36	2,852	5,679
Total Mineral Reserve Estimate	Proven + Probable	3,399	4.08	395	719	446	43,121	78,579

Notes:

1.The Mineral Reserve is estimated using the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.

2.The Mineral Reserve is estimated with a 372 gpt AgEq fully-costed COG for the deposit and an 85 gpt AgEq Marginal COG for development.

3.The Mineral Reserve is estimated using long-term prices of $1,650/oz for gold and $21.00/oz for silver.

4.A government gold royalty of 0.5% is included in the Mineral Reserve estimate.

5.Stockpile values were provided by SilverCrest and account for approximately 7% of Mineral Reserve ounces.

6.The Mineral Reserve is estimated with a maximum mining recovery of 95%, with reductions in select areas based on geotechnical guidelines.

7.The Mineral Reserve presented includes both planned and unplanned dilution.

8.A minimum mining width exclusive of dilution of 1.5 m, 3.3 m and 0.5 m was used for the longhole, cut and fill and resue mining methods, respectively.

9.Average metallurgical recoveries applied are 96.7% Ag and 97.9% Au.

10.AgEq(gpt) = (Au(gpt) * 79.51 + Ag(gpt)). AgEq calculations consider metal prices, metallurgical recoveries, and Mexican Government gold royalty.

11.Estimates use metric units (metres (m), tonnes (t), and gpt). Metal contents are presented in troy ounces (metric tonne x grade / 31.103475).

12.The independent Qualified Person is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue that could materially affect the Mineral Reserve Estimate.

13.Totals may not add due to rounding.

1.12 Mining Methods

1.12.1 Geotechnical Considerations

Extensive geomechanical core logging and underground mapping has been completed by SIL at the Babicanora and Las Chispas Areas using the RMR76 and Q’ rock mass classification systems. Rock mass structure data has been collected through mapping in the sill drives at the BAN, BAV, and BAM veins. The rock mass quality and structural data were reviewed by KP through site visits, core photos, and complementary underground mapping.

The available data have been used to define rock mass quality domains based on spatial variability, proximity to the mineralized zone, and lithology. The typical rock mass quality is summarized in Table 1‑3.

Table 1‑3: Typical Rock Quality Ranges based on the RMR76 Rock Mass Classification

Vein

Domain

Vein

Immediate HW-FW

Distal HW-FW

Babicanora Norte
Babicanora Vista

All

60
Good

60 to 65
Good

70
Good

Babicanora Main
Babicanora Sur

Low Quality Zones

20 to 40
Poor

20 to 50
Poor to Fair

Outside Low Quality Zones

60
Good

55 to 60
Fair

45 to 75
Good

Babicanora Central

Low Quality Zones

20
Poor

35
Poor

Babicanora Main (lower part)

Outside Low Quality Zones

35
Poor

50
Fair

80
Good

William Tell
Giovanni
Las Chispas
Main
Luigi

All

60 to 65
Good

65
Good

60 to 65
Good

The available discontinuity orientation data have been used to define structural domains. The following domains reflect differences between the veins as well as several key lithologies:

•Las Chispas Area - All Veins

•Babicanora Area - LAT1 (BAC, BAM & BAS)

•Babicanora Area - LAT1 (BAN & BAV)

•Babicanora Area - SACTS (All Veins)

The defined joint sets are parallel to sub-parallel to the mineralization, cross-cut the mineralization, and are sub-horizontal. Not all of the discontinuity orientations are observed at each vein, but the general trends are similar.

The following geotechnical design input was provided to the mine plan. The design input was based on the rock mass quality and structural domains, empirical stability analyses, 2D numerical modelling, existing experience at the mine, and experience from other similar projects and mines.

•Stope dimensions and overbreak

•Dimensions for crown, sill, rib and inter-lode pillars

•Offsets and strategies for mining around voids and historic workings

•Offsets between stopes and development

•Extraction sequencing

•Strategies for temporary sill pillar recovery under sill mats

•Ground support

1.12.2 Hydrological Considerations

A hydrological and hydrogeological study was completed by HRI in 2019. Work completed included: installation of six pressure probes to measure flow elevations; water elevation measurements taken for quality control purposes in three piezometers to verify measurements taken by SilverCrest; slug testing in three piezometers; and pump tests in a stope at the base of the historic workings at Las Chispas that is filled with groundwater, and which is the only known location in the historic operations that has groundwater. Two boreholes were drilled and tested in 2021 to supply water to the operation.

There was insufficient rainfall during the monitoring period to generate any pressure variation between the six pressure probes.

Water elevation measurements indicated the presence of a perched phreatic surface considerably above the natural water table. The water table is at approximately 900 m elevation and the perched phreatic surface is at 1,032 m elevation. The perched phreatic surface does not impact the historic workings, and for the purposes of the mine plan, will not require dewatering. Pump tests indicated that the host rocks had low permeability. Based on the pump test results, a maximum flow of 9.4 L/s has been estimated at the end of operation of Las Chispas Area. There is insufficient data to determine if this flow rate will be sustained in the long-term. As a result, the mine plan in this area was designed with a dewatering system in the lower levels with a pumping capacity of 9.4 L/s; however, this pumping system will not be required until late in the mine life.

Diamond Hole database was reviewed in 2023, so is the mine plan related to groundwater elevation. Multiple faults are present in the area, but mostly above the water table elevation.

As the majority of the workings will be above the water table elevation of 900 masl, groundwater inflows are not expected to be a concern to mining operations. No impacts to surrounding perennial streams or valley bottoms are expected from mine dewatering activities, since these are typically dry other than during short-term, low precipitation rainfall events. The Rio Sonora, located 7 km west of the Las Chispas Operation, is considered too distant to be affected by any future mine-related pumping.

1.12.3 Mining Design and Schedule

The Las Chispas Operation contains mineralized zones varying in dip and thickness both along strike and at depth. While all geometries are suitably extracted using the longitudinal longhole stoping method, particular areas have been selected for cut and fill mining due to geotechnical considerations. Additionally, resue mining sees limited use to minimize dilution in high-grade narrow veins. Current site practice prioritizes longhole stoping and studies are ongoing to maximize this mining method throughout the deposit where geotechnical conditions allow it. Mining areas are accessed via three portals: the Santa Rosa, Babicanora Central, and Las Chispas Portals.

The longhole longitudinal retreat mining method is used in mining areas where areas where ground conditions are fair to good. longhole stope heights of 15 m to 18 m, as well as a maximum strike length of 25 m, were selected based on geotechnical considerations.

Variations of cut and fill mining methods include cut and fill with breasting and resuing. Cut and fill with breasting will be used in mining areas with adverse ground conditions. Resuing is used in mining areas where the vein thickness is very narrow and the additional dilution through stoping by longhole or cut and fill would bring the grade below cut-off. The level distance for cut and fill and resuing was set at 18 m to reduce the total development required.

The mine plan targets a production rate of 1,200 tpd, achieved through a ramp up in production between 2023 and 2027. Total development advance in the already established Babicanora area is limited to 30 m/d in 2023, increasing to 35 m/d in Q1 2024. Total development advance in the Las Chispas area is limited to 5 m/d for single heading advance, increasing to a total limit of 14 m/d with multiple headings.

The mine operates two 12-hour shifts per day, 365 days per year. There are three Contract development, production and maintenance crews on a schedule of 30 days working/15 days off. Contract mine staff and management are on a 20 and 10 schedule providing 7 day per week coverage while SIL mine management and the technical department mostly work 5 day per week schedules with coverage provided on weekends.

Mine services include ventilation, mine dewatering, mine water supply, power, provision of cemented rock fill, compressed air, fuel, surface and underground communications networks, explosives storage and handling, and transport for personnel and materials. All major mechanical maintenance is performed on surface at the existing workshop. Jumbos, production drills and bolters will be serviced at 3 future underground maintenance service bays. Minor maintenance and emergency work is being performed in the underground workplaces by mobile maintenance crews.

1.13 Recovery Methods

Based on the operating results, Ausenco’s design for treatment of a variety of feed grades is meeting or exceeding design expectations. The Process Plant is located at the mine site and receives blended feed material from several different mineralized veins. The key process design criteria for the plant are:

•Major equipment is designed for nominal throughput of 1,250 tpd with the ability to accommodate increased throughput up to 1,750 tpd via an expansion to the comminution circuit.

•Crushing circuit availability of 70% is being achieved or exceeded at the Process Plant.

•The Process Plant includes semi-autogenous grinding (SAG), flotation, independent cyanide leaching circuits for flotation concentrate and tailings streams, Merrill Crowe circuit, Cyanide destruction and tailings handling facilities, and is achieving an overall availability of greater than the design value of 91.3%:

•SAG design values (Axb) of 41 and BWI of 19.4 kWh/t are sufficient to process future material successfully.

•Design head grades of 8 gpt Au and 800 gpt Ag with the ability to handle peak head grades of as much as 13 gpt Au and 1,300 gpt Ag are higher than required to process future material successfully.

The current operating strategy has the flotation, concentrate leach and cyanide detoxification circuit typically by-passed. The Process Plant is using the bulk leach circuit to perform a whole ore leach at ~1,500 ppm CN. Overall recoveries remain high, and weakly acid dissociable cyanide (CNwad) levels in filtered tailings seepage ponds are well below International Management Cyanide Code (ICMC) limits. The cyanide detoxification circuit has been modified to process solution to process solution or slurry and is operated as required to maintain seepage pond concentrations below the ICMC limit. Figure 1‑3 presents an overall process flow diagram of the Process Plant as currently operated.

The total operating power for the Process Plant is between 3.8 and 4.6 MW depending on which circuits are being operated. Provisions were made for raw water to be supplied from the underground mine, the fresh water (storm) pond, the Sonora Valley, or any combination thereof pending availability and requirements. Wherever possible in the Process Plant, process water or barren solution is used to minimize freshwater consumption. Potable water is sourced from the sediment-free water in the raw water tanks and treated prior to distribution or shipped to site. Process Plant consumables for current operations include quick lime, sodium cyanide, lead nitrate, oxygen, flocculants, coagulant, diatomaceous earth, zinc powder, copper sulphate, anti-scalant, and flux.

Figure 1‑3: Overall Process Diagram

Source: Ausenco, 2023.

1.14 Project Infrastructure

1.14.1 Introduction

Infrastructure existing for the mining and processing operations include:

•Underground mine, including portals (3), ramps and vents

•Roads: main access road, site access road, bridge crossing, borrow pit haul road, filtered tailings storage facility (FTSF) haul road, waster rock storage facility (WRSF) haul road, and explosives access road

•Diversion and collection channels, culverts, and containment structures

•Site main gate and guard house (2)

•Accommodation camp

•Power and water distribution

•Warehouse and truck shop, offices, medical clinic, and nursery

•Explosives magazines

•Process Plant

•Control room

•Doré room

•Assay laboratory (off-site facility)

•Reagent storage facilities

•Water treatment plant

•Mineralized stockpiles and WRSFs

•Filtered tailings storage facility (FTSF)

•Nuclear devices storage facility

•Hazardous waste interim storage facility

•Exploration core shacks.

Figure 1‑4 shows the site layout.

Figure 1‑4: Site Layout

Source: Ausenco, 2023.

1.14.2 Waste Rock Storage Facility

The two waste rock storage facilities (WRSF#1 and #2) have a combined capacity of approximately 1.0 Mt and are expected to be sufficient as temporary facilities to store development waste before returning it to be used as rock fill in mined-out stopes.

1.14.3 Ore Stockpiles

The mineralized material stockpiles have a capacity of approximately 0.35 Mt with segregated piles by grade (or clay content). These ore stockpiles are located west of the crusher.

1.14.4 Filtered Tailings Storage Facility

A filtered tailings storage facility (FTSF) was adopted based on the mine plan, limited available construction materials, and to avoid risks associated with storage of conventional slurried tailings behind a dam. Tailings are thickened, filtered, and delivered by trucks to the FTSF. Two facilities were designed to store approximately 4.5 Mt of tailings. The East FTSF has been designed with a capacity to store up to 3.1 Mt of filtered tailings. Given the current estimated production for the LOM, approximately 150 to 200 kt of filtered tailings are projected be stored in the West FTSF, which will be constructed towards the end of the LOM.

The facilities were designed with an overall slope of 2.8:1 (H:V), slope between benches of 2.2:1 (H:V), and maximum approximate height of 56 m (measured from the lowest portion of the starting buttress to the maximum elevation of the dry stack). The existing East FTSF is located 530 m northeast of the Process Plant and covers an area of approximately 101,932 m2.

The FTSF designs include contact water collection channels, contact water collection/storage ponds, sub-drain collection systems, and access roads. Non-contact water diversion channels have been constructed to reduce the amount of surface contact water generated from the FTSF area.

1.14.5 Power and Fuel

Electrical power is supplied to site from the national grid, by way of an overhead power line, rated to carry 8.5 MVA at 33 kV. Connection to the grid is via the Nacozari de Garcia substation, which is 83 km from the operation.

Diesel fuel requirements for the mining equipment, process and ancillary facilities is temporarily supplied by a contractor. The permanent distribution systems located near the Process Plant are constructed and will be used when the necessary permits have been received.

1.14.6 Camp

The Las Chispas Operation is equipped with an accommodation camp with a capacity of 500 beds. The camp is connected to the national electricity grid and equipped with an emergency genset capable of handling the entire electrical load. The camp is serviced by the potable water treatment plant and sewage treatment plant. Garbage is collected on site and disposed at the Arizpe municipality waste disposal facility.

All rooms are single occupancy and include a bed, toilet, air heating/conditioning and shower. The camp is equipped with kitchen and dining facilities to support the 24-hour operation, laundry, maintenance camp shop, and snack area. The camp also includes a gym, a multifunction sport field, a recreation facility, barbecue area, and a chapel.

1.14.7 Water Management

Water required for the Las Chispas Operation is supplied as groundwater from dewatering of the underground mine and or from the Sonora Valley groundwater, as required. The Las Chispas Operation design includes water diversion features to divert precipitation and groundwater away from operation infrastructure and direct it to natural receiving streams to minimize the generation of contact water. The layout also includes water collection ponds to collect any contact water that is produced, and to store any excess water from the underground workings such that it can be recycled for use in the Process Plant. There is not expected to be any water discharged from the Las Chispas Operation.

1.15 Market Studies and Contracts

The doré bars produced at the Las Chispas Operation have variable gold and silver contents and a variable gold to silver ratio, depending mainly on the corresponding gold and silver grades of the feed material being processed at any given time. Over the projected LOM, the metal content is expected to be 0.5%-1.5% gold and 85%-95% silver with the balance impurities. During 2022, SilverCrest has engaged with gold and silver buyers and refiners, and made the necessary arrangements to safely transport, refine, and sell the doré.

Gold and silver doré can be readily sold on many markets throughout the world and the market price ascertained on demand.

Metal pricing for financial analysis was agreed upon based on consideration of various metal price sources. This included review of consensus price forecasts from banks and financial institutions, three-year trailing average of spot prices, and current spot prices. The metal pricing for the base case economic model was:

•Gold price of $1,800/troy oz payable

•Silver price of $23.00/troy oz payable.

At the Report Effective Date, the Company has entered into contracts necessary for operating Las Chispas. These contracts and agreement include, but are not limited to, contracts for drilling, underground mining, explosives, power, supply of consumables, catering and camp management, security, personnel transportation, and refining. These contracts are reviewed and negotiated periodically to ensure they remain competitive and aligned within industry norms for projects in similar settings in Mexico.

1.16 Environmental Studies, Permitting and Social or Community Impact

1.16.1 Environmental Considerations

Environmental studies pertaining to the Las Chispas Operation have been submitted to the Ministry of Environmental and Natural Resources of Mexico (SEMARNAT), including physical and biological evaluations of the surrounding climate, flora, fauna, air quality, noise, and surface and groundwater quality. This information is updated and reported annually. In addition, a physical climate risk assessment aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) was conducted in 2021 in order to assess and understand key risks.

LLA is conducting a comprehensive rock quality characterization study with the intent to assess the potential for acid rock drainage and metal leaching in the waste rock. Samples chosen based on the deposit's lithological characteristics are being processed by SGS Lakefield Canada, and the analysis will be performed by a specialized consultant, with preliminary results due in 2023. This work will complement studies already completed which concluded on low concentration of potentially leachable metals and no acid rock drainage (ARD).

There are no known environmental liabilities at the Las Chispas Operation arising from historic mining and processing operations. Since 2019 LLA has been conducting environmental characterization studies on soil and water, initially in the baseline study reported to SEMARNAT and subsequently periodically as part of the monitoring program. No environmental liabilities have been identified.

1.16.2 Permitting Considerations

LLA has successfully fulfilled the SEMARNAT's requirement for a suite of studies to support the award of environmental permits for the exploration, construction, and operation of the Las Chispas Operation. LLA secured all key permits, ensuring legal and environmental compliance for the Las Chispas Operation, including exploration, construction, exploitation stages, water use, change of land use, waste generation, emissions, and Process Plant.

A medium voltage power transmission line, authorized by SEMARNAT for positive environmental impact, was developed and went operational in April 2022. The "Tetuachi" bridge was designed and constructed in 2021 to ensure safe crossing over the Sonora River during the rainy season, with CONAGUA's approval.

LLA has a concession to exploit and use national groundwater for industrial mining use, granted by CONAGUA in October 2020, and valid for 10 years (renewable). LLA also operates under a closed-circuit design for the Process Plant that eliminates the need for a wastewater discharge permit. LLA has a hazardous waste management plan registered with SEMARNAT.

LLA also maintains a general permit granted by SEDENA for the purchase, use, and storage of explosives., with plans for an increase in purchasing and storage capacity. Finally, the environmental operating license, secured from SEMARNAT in September 2022, permits operations at the Las Chispas Operation, integrating all previously obtained permits. Granted permits have varying terms, ranging from one year to unlimited terms. All permits will be renewed as required.

1.16.3 Environmental Management Plans

LLA conducts a comprehensive Environmental Monitoring Program at the Las Chispas Operation, which includes routine studies on environmental noise, air quality, ground and surface water quality, drinking water analysis, and heavy metals in sediments, with annual reports presented to SEMARNAT. The Water Management Plan ensures efficient use of water resources by monitoring extraction and consumption and avoids wasteful discharge practices. A third-party specialist is working on updating the water balance to improve resource optimization. The Air Quality Management Plan includes a mitigation program for suspended dust caused by traffic, with measures like quarterly dust sampling, road irrigation, speed control, and preventive maintenance for mobile equipment, all being reported to SEMARNAT.

1.16.4 Waste Considerations

The Las Chispas Operation has been registered with SEMARNAT as a hazardous waste generator since 2019. A warehouse on site is maintained for the management and disposal of waste, including that produced by contractors, with waste disposal handled by SEMARNAT-authorized suppliers. LLA is also registered with the Commission of Ecology and Sustainable Development of the State of Sonora (CEDES) as a generator of special handling waste (non-hazardous), which is subject to recovery or recycling and is removed by state-authorized companies. LLA submits biannual reports to CEDES on the generation and disposal of this waste. All greywater from Las Chispas Operation’s camp and office facilities is channelled to a wastewater treatment plant, with up to 90 m3 treated per day; this treated water is used for road irrigation to suppress dust and greening reforested areas.

1.16.5 Social and Community Considerations

The Sonora Valley is an isolated community set in a region of rugged topography. As of March 2023, the Las Chispas Operation personnel consisted of 908 personnel (327 employees of Llamarada and 581 contractors). 15% of the personnel were local to the Sonora Valley and 99% of the total number were from various parts of Mexico. There are four main ejido groups that SilverCrest have been actively engaging with, three of which will be impacted by mining operations (Ejido Bamori, Ejido Arizpe, and Ejido Sinoquipe) and the fourth (Ejido Los Hoyos) is impacted by the Los Hoyos Powerline. Community engagement and relationship management play a crucial role in SilverCrest's operations. As such, constant dialogue is maintained, and regular meetings held with the communities within the areas of influence including the four main ejido groups. Impacts to Indigenous populations were examined. There are no indigenous populations located within 10 km of the Las Chispas Operation.

A Social Baseline Study and a Materiality Assessment highlighted key concerns within the community including water scarcity, environmental safety, local infrastructure, and job opportunities. SilverCrest has established a community communication strategy and grievance mechanism in response to these concerns and has committed $1.5 million to improving local water infrastructure over five years (2022 - 2026). Furthermore, the Company is part of the Sonoran Mining Cluster, sharing best practices on community relations and responsible mining.

The Company is one of the main sponsors of Impulso Koria, a non-profit organization focusing on local infrastructure, education, and healthcare. In addition, SilverCrest has incorporated a ranching business, Babicanora Agrícola del Noroeste S.A de C.V (BAN), underlining their participation in the local economy and commitment to the local communities.

1.16.6 Closure Considerations

A Conceptual Closure Plan was prepared in general accordance with applicable Mexican standards and WSP’s experience with similar projects. Under Mexican law, mining may be initiated under a Conceptual Closure Plan with a Detailed Closure Plan being developed later in the operation’s life.

WSP prepared a conceptual closure cost estimate for the Las Chispas Operation, using a combination of information derived from the 2021 FS Report, drone imagery of existing facilities and landforms, information from the Detailed Engineering Phase 1 FTSF Design, a database of itemized costs from local contractors working on similar projects in the area, and assumptions derived from WSP’s experience in mine closure. The estimated cost is approximately $6.8 million. Closure costs are assumed to be incurred over a period of approximately three years, following the cessation of production and a subsequent period of seven years of monitoring.

1.17 Sustaining Capital and Operating Costs

1.17.1 Sustaining Capital Cost Estimates

LOM sustaining capital costs total $219.9 M, which are detailed as per Table 1‑4.

Table 1‑4: LOM Sustaining Capital Cost Summary ($M)


Calendar Year	LOM	2023	2024	2025	2026	2027	2028	2029	2030
Production Year		1	2	3	4	5	6	7	8
U/G Mine Development	176	24.3	33.2	31.8	32.8	28.6	21.4	1.8	1.7
U/G Mine Infrastructure	28.3	8.9	5.6	2.6	6.1	1.7	2.1	1.2	0.03
Process Plant	6.2	1.8	1.3	1.6	0.5	0.5	0.5	-	-
Dry Stack Tailings	3.2	-	2.9	-	-	-	0.3	-	-
G&A (including mobile)	6.7	4.1	1	0.3	0.3	0.3	0.3	0.3	-
Total	219.9	39.2	44.1	36.2	39.7	31.1	24.7	3.3	1.7

1.17.2 Reclamation and Closure Cost Estimates

An allowance of $6.8 M was made for closure costs with spending scheduled to occur across the three years following the cessation of production. Any change in regulations that would require SilverCrest to undertake progressive closure, or to post a cash bond, would affect the timing of these cash flows.

No salvage value was assumed for the Process Plant and surface infrastructure. It has also been assumed that CFE would accept ownership of the power line which is common in Mexico.

1.17.3 Operating Cost Estimate

The average LOM operating cost is estimated at 168.18 $/t processed. The operating cost is defined as the total direct operating costs including mining, processing, and G&A costs. Mining costs are estimated to be 99.59 $/t processed (108.04 $/t mined). Tonnes of material to be processed includes mined ore that is already in stockpiles. Table 1‑5 shows a summary breakdown of the operating costs.

Table 1‑5: Operating Cost Summary


Area			LOM Average Operating Cost
Mining* ($/t processed)			99.59
Process ($/t processed)			47.21
G&A ($/t processed)			21.39
Total LOM Operating Cost ($/t processed)			168.18

Notes: *Includes stope development but excludes capitalized underground development. Total may not add due to rounding.

1.18 Economic Analysis

A pre- and post-tax economic analysis was completed on the basis of a discounted cash flow model featuring a 5% discount rate. The analysis used constant (real) Q1 2023 US$ and the Las Chispas Operation cash flows were modelled in annual periods.

The model assumed a production period of eight years, including 2023-2030. It should be noted that the average Process Plant throughput of 1,200 tpd is limited by the mining rate not the Process Plant design which is 1,250 tpd.

The economic model was based on a gold price of $1,800/oz and a silver price of $23.00/oz. The refining terms used as the basis of the economic analysis are based on actual average cost paid by SilverCrest with its third-party refiner. The freight terms are also based on actual rates.

The taxable income was estimated using a tax rate of 30% over the LOM.

The economic analysis demonstrates that the mine plan has positive economics under the assumptions used. The Las Chispas Operation post-tax (NPV) at a 5% discount rate is estimated to be $549.9 M. A summary of the economic analysis of the Las Chispas Operation is shown in Table 1‑6.

Table 1‑6: Economic Analysis Summary


Description	Unit	LOM Total/Avg.
Average Mill Throughput	tpd	1,200
Mine Life years	years	8

Average Gold Mill Head Grade	gpt Au	4.02
Average Silver Mill Head Grade	gpt Ag	396
Average Silver Equivalent Mill Head Grade	gpt AgEq	716

Contained Gold in Mine Plan	koz Au	422.7
Contained Silver in Mine Plan	koz Ag	41,615.6
Contained Silver Equivalent in Mine Plan	(koz AgEq)	75,227.6

Average Gold Metallurgical Recovery	% Au	98.0
Average Silver Metallurgical Recovery	% Ag	97.0

Payable Gold	koz Au	421.6
Payable Silver	koz Ag	41,005.5
Payable Silver Equivalent	koz AgEq	74,525.4
Average Full Year Annual Production
Gold	Au koz/yr	57.0
Silver	Ag koz/yr	5,503.5
Silver Equivalent	AgEq koz/yr	10,036.0

Mining Cost	$/t mined	108.00
Mining Cost	$/t processed	99.59
Process Cost	$/t processed	47.21
G&A Cost	$/t processed	21.39
Total Operating Cost	$/t processed	168.18
LOM Sustaining Capital Cost	$M	219.9
Closure Costs	$M	6.8

Cash Costs LOM – Mine Level	$/oz AgEq	7.84


AISC LOM – Mine Level	$/oz AgEq	11.98

Au Price	$/oz	1,800
Ag Price	$/oz	23
Pre-Tax NPV 5%, $M	5%, $M	706.5
Post-Tax NPV (5%, $M)	5%, $M	549.9
Undiscounted LOM net free cash flow	$M	654.1
LOM AISC Margin	%	48%

The Las Chispas Operation is most sensitive to metal pricing and recovery/grade. Grade sensitivity mirrors the sensitivity to metal prices.

1.19 Interpretation and Conclusions

Under the assumptions and parameters discussed in the Report, the Las Chispas Operation shows positive economics.

1.19.1 Risks

1.19.1.1 Mineral Resource Estimate

The drill sample spacing varies by vein and the classification of Mineral Resource Estimate was assigned based on the level of confidence based on drill core sample spacing and grade variability. Risk is associated with all classifications of Mineral Resource Estimate, most particularly with the Inferred Mineral Resource Estimate.

There is a risk that the Mineral Resource Estimate wireframes (>150 gpt AgEq) may be moderately high biased with respect to the representative volume, and subsequent estimated tonnage and metal content. This potential bias could be where the wireframes extend somewhat too far into lower-grade (<150 gpt AgEq) assay areas of influence. A follow-up rolling reconciliation is recommended to allow for any mine call factor adjustments to be made in these lower-grade areas.

Localized extremely high-grade samples were encountered in drill core sampling as part of the mineralization system. Locally, this represents a risk in the accuracy of grade estimation for Mineral Resource and subsequent Mineral Reserve estimation, and to operational grade control.

Where only widely spaced sampling is available, the spatial extent of the high-grade mineralization may be uncertain. This risk can be reduced through future close-range sampling to delineate high-grade shoots within the vein systems, thereby allowing the highest-grade material to be sub-domain to constrain spatial influence of these samples within delineated shoots. Closely spaced pre-production definition drilling in combination with duplicate sampling protocols for high-grade samples should be implemented to mitigate excessive extrapolation of high-grade values and to inform the local, short-range, grade variability.

1.19.1.2 Mineral Reserve Estimate and Mine Plan

General factors that may affect the Mineral Reserve Estimate include adjustments to gold price and exchange rate assumptions; changes in operating and capital cost estimates; dilution adjustments; changes to geotechnical assumptions, changes to hydrogeological and underground dewatering assumptions; and changes to modifying factor assumptions, including mining recovery and dilution.

There is a known open stope area in the Babicanora Central Zone. This area could cause recovery problems because although the general area is known, the exact size and geometry of the open stope is not appropriately defined. To mitigate the possible impact of this risk, all mining within 10 m of the known void have been removed from the plan, and test hole drilling cost estimates were included in the costing of this area.

SIL has established access to the historic workings in the Las Chispas area and has created a 3D model of the extensive workings using digitized historic long sections. However, there remains considerable uncertainty in the position of some of the voids. It is recommended that surveys be completed to confirm the void position and geometry prior to further mining. Probe drilling will also be required on advance during development near potential voids.

1.19.2 Opportunities

1.19.2.1 Exploration and Mineral Resources

Several potential opportunities have been identified for expansion and increasing confidence of existing Mineral Resources, in addition to brownfields exploration to test mapped targets along vein strike and to depth.

The most significant upside is the potential for conversion of existing Inferred Mineral Resources to Indicated Mineral Resources with additional drilling, and the exploration potential to identify and support new Inferred Mineral Resources.

Inferred Mineral Resources are estimated at 1.3 Mt grading 3.73 gpt Au, and 269 gpt Ag, or 566 gpt AgEq, for 24.1 Moz AgEq. There are approximately 15 Moz over 500 gpt AgEq with sufficient mining width, close to surface, and in proximity to current or planned underground workings, of which 10 Moz AgEq will be targeted immediately for drilling to assess conversion into Indicated Resources. The majority of these Mineral Resources are located in the Babi Sur Main and FW, El Muerto Splay and the Babicanora Norte Vein NW Extension. Significantly, Inferred Resources targeted within the Babi Sur Zone include 144 kt containing 4.86 Moz AqEq with a grade of 1,050 gpt AgEq (8.46 gpt Au and 378 gpt Ag) using a cut-off of 500 gpt AgEq.

The Las Chispas Operation has significant brownfields exploration potential. There are over 23 km in strike of underexplored veins throughout the property that have been identified on surface through mapping and sampling programs. These areas include the Chiltepin Area, La Martina, Las Chispas Southeast, Ranch Vein, and La Victoria Vein. There are also several blind veins and structures that have been tagged through various drill programs including potential vein expansion to depth along several of the currently known zones. Future drilling should focus on step-out drilling within the known mineralization zones and testing deeper host lithologies, parallel veins and newly identified areas that had limited historical workings.

1.19.2.2 Process Plant Capacity and Plant Expandability

The Process Plant design was for 1,250 tpd and the LOM has now been set to 1,200 tpd.

If the mine capacity or ramp-up progress is better or faster than what has been planned in the Report, there is capacity in the Process Plant to go beyond the design of 1,250 tpd as the Process Plant has been tested at milling rate of 62 tph and availability above 94%.

There is also the possibility to expand the Process Plant up to 1,750 tpd with the completion of studies and engineering to review the crushing, grinding, flotation, leaching and dewatering circuits.

1.19.2.3 Mineral Reserve Estimate and Mine Plan

The design of the LOM was completed at a level of detail sufficient for inclusion in this Report. The LOM plan will be used to form the basis of future detailed design and schedule. As with any LOM, there exists an opportunity to further improve the mine design and schedule in terms of detailed design, especially with due regard to integration of services, layout of development, design of stopes and geomechanics.

1.20 Recommendations

A sequential phase approach is presented for recommended future work. The following is the budget for the recommended Phase 1 (Year 1) and Phase 2 (Years 2 and 3) work.

Phase 1 recommendations account for $15 M. Of this amount, a budget of $10 M has already been approved starting in July 2023 for a period of 9 months. The balance is expected to be reviewed with the 2024 budget cycle. The targets for this program are highlighted in Table 1‑7.

Table 1‑7: Summary of Budget for Recommended Phase 1 and Phase 2


	Phase 1 ($M)	Phase 2 ($M)
	Year 1	Years 2 and 3
Exploration and Mineral Resource Conversion Drilling	13.1	18.3
QA/QC	0.1	0.2
Bulk Density Investigation	0.03	nil
Resource Estimation	0.05	0.1
Mine Design	0.1	0.2
Sub-Total	13.4	18.8
Contingency (10%)	1.3	1.9
Total	14.7	20.7

Note: Numbers may not add due to rounding.

APPENDIX B


AUDIT COMMITTEE CHARTER

A.PURPOSE

The primary function of the audit committee (the "Committee") is to assist the Board of Directors (the "Board") in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the Company to regulatory authorities and shareholders, the Company's systems of internal controls regarding finance and accounting and the Company's auditing, accounting and financial reporting processes.

The Committee's primary duties and responsibilities are to:

•serve as an independent and objective party to oversee the Company's accounting and financial reporting processes and internal control system, and compliance with ethical standards adopted by the Company;

•oversee the quality and integrity of the Company's financial statements;

•oversee, review and appraise the qualifications, performance and independence of the Company's external auditor; and

•oversee the Company's compliance with legal and regulatory requirements.

Consistent with its function, the Committee should encourage continuous improvement of, and should foster adherence to, the Company's policies, procedures and practices at all levels. The Committee should also provide for an open avenue of communication among the Company's external auditor, financial and senior management, and the Board.

B.COMPOSITION

1.The Committee shall be comprised of at least three directors as determined by the Board, all of whom shall be "independent" directors in accordance with the securities laws, rules, regulations and guidelines of all applicable securities regulatory authorities, including without limitation the securities commissions in each of the provinces and territories of Canada and the U.S. Securities and Exchange Commission, and the stock exchanges on which the Company's securities are listed, including without limitation the Toronto Stock Exchange and the NYSE American LLC (collectively, "Securities Laws"), subject to any exemptions provided thereunder.

2.Each member of the Committee shall satisfy the financial literacy and experience requirements of Securities Laws as determined by the Board, except as permitted by applicable securities regulatory guidelines. Each member of the Committee shall be able to read and understand fundamental financial statements, including the Company's statement of financial position, statement of profit and loss and other comprehensive income and statement of cash flows. At least one member of the Committee must be financially sophisticated within the meaning of Rule 803B of the NYSE American LLC Company Guide and must be an "audit committee financial expert" as defined in Item 407(d)(5)(ii) and (iii) of Regulation S-K.

3.The determination as to whether a particular director satisfies the requirements for membership on the Committee shall be made by the full Board.

4.The members of the Committee shall be elected by the Board at its first meeting following the annual shareholders' meeting and shall serve until the next annual shareholders' meeting or until earlier resignation or death. The Board may remove any member from the Committee at any time with or without cause. Unless a Chair is elected by the Board, the members of the Committee may designate a Chair by a majority vote of the full Committee membership.

C.MEETINGS

1.Except as expressly provided in this Charter, the Articles of the Company or applicable Securities Laws, the Committee shall fix its own rules of procedure.

2.In order to discharge its responsibilities, the Committee shall establish a schedule of meetings on an annual basis (with meetings at least quarterly, or more frequently as circumstances dictate or as may be prescribed by securities regulatory requirements) and shall otherwise meet at such times as the Chair of the Committee shall designate.

3.As part of its job to foster open communication, the Committee will meet at least quarterly with the Chief Financial Officer and, in a separate session, with the external auditor.

4.At all meetings of the Committee, the presence of a majority of the members will constitute a quorum for the transaction of the business and the vote of a majority of the members present shall be the act of the Committee. In the event of an equality of votes, the Chair of the Committee shall not have a second casting vote.

5.Members of the Committee may participate in a meeting of the Committee by conference telephone or similar communications equipment by means of which all people participating in the meeting can hear each other and participation in such a meeting will constitute presence in person at such a meeting.

6.Any action required or permitted to be taken at any meeting of the Committee may be taken without a meeting if all of its members consent in writing to the action and such writing is filed with the records of proceedings of the Committee.

7.Directors not on the Committee may attend meetings at their discretion. At the invitation of the Chair of the Committee, members of management and outside consultants shall attend Committee meetings.

8.The Chair shall develop and set the Committee's agenda in consultation with other members of the Committee and Company management, as necessary. The agenda and any supporting material shall be communicated to members in advance to the extent practical to permit meaningful review.

9.The Committee shall maintain minutes of meetings and report to the Board on significant matters arising at Committee meetings at the next scheduled meeting of the Board.

D.AUTHORITY

1.The Committee has the authority to conduct investigations into any matters within its scope of responsibility and obtain advice and assistance from outside legal, accounting, or other advisers, as necessary, to perform its duties and responsibilities.

2.In carrying out its duties and responsibilities, the Committee shall have full and free access to officers and employees of the Company and its books and records. Any meetings or contacts that the Committee wishes to initiate may be arranged through the CEO or the Corporate Secretary or directly by the Chair or other member of the Committee. The Committee will use its judgment to ensure that any such contact is not disruptive to the business operations of the Company.

3.The Company will provide appropriate funding, as determined by the Committee, for payment of: (i) compensation to any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company; (ii) compensation to any advisors employed by the Committee, and (iii) ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.

E.RESPONSIBILITIES AND DUTIES

To fulfill its responsibilities and duties, the Committee shall:

1.Financial Reporting

(a)In collaboration with management and the independent auditor, review and approve (or recommend to the Board for approval) the Company's annual and interim financial statements, management's discussion and analysis, any annual and interim earnings press releases and any reports or other financial information to be submitted to any governmental and/or regulatory body, or the public, including any certification, report, opinion, or review rendered by the external auditor for the purpose of recommending their approval to the Board prior to their filing, issue or publication. The Chair of the Committee may represent the entire Committee for purposes of this review in circumstances where time does not allow the full Committee to be available;

(b)review analyses prepared by management and/or the external auditor setting forth significant financial reporting issues and judgements made in connection with the preparation of the financial statements, including analyses of the effects of alternative GAAP or IFRS methods on the financial statements;

(c)review the effect of regulatory and accounting initiatives, as well as off balance sheet structures, on the financial statements of the Company;

(d)ensure that adequate procedures are in place for the review of the Company's public disclosure of financial information extracted or derived from the Company's financial statements, as well as review any financial information and earnings guidance provided to analysts and rating agencies, and periodically assess the adequacy of those procedures; and

(e)review and approve (or recommend to the Board for approval), prior to public release, such other public disclosures with respect to financial information including guidance, prospectus, annual information form, annual report, management information circular, material change report, as the Committee considers appropriate.

2.External Auditor

"External auditor" as used here shall mean any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company. Each such external auditor shall report directly to the Committee. With respect to the external auditor, the Committee shall:

(a)review annually, the performance of the external auditor who shall be ultimately accountable to the Board and the Committee as representatives of the shareholders of the Company;

(b)obtain annually, a formal written statement of external auditor setting forth all relationships between the external auditor and the Company consistent with The Public Company Accounting Oversight Board Rule 3526;

(c)review and discuss with the external auditor any disclosed relationships or services that may have an impact on the objectivity and independence of the external auditor;

(d)appoint, retain and replace the external auditor to be nominated annually for shareholder approval;

(e)determine the compensation to be paid to the external auditor;

(f)Assess the independence of the external auditor, receive the report of the independent auditor and review the resolution of disagreements between management and the external auditor regarding financial reporting;

(g)at each meeting, where desired, consult with the external auditor, without the presence of management, about the quality of the Company's accounting principles, internal controls and the completeness and accuracy of the Company's financial statements;

(h)review and approve the Company's hiring policies regarding partners, employees and former partners and employees of the present and former external auditor of the Company;

(i)review with the external auditor the audit plan for the year-end financial statements; and

(j)pre-approve all non-audit-related services and the fees and other compensation related thereto provided by the Company's external auditor. The authority to pre-approve non-audit services may be delegated by the Committee to one or more independent members of the Committee, provided that such pre-approval must be presented to the Committee's first scheduled meeting following such pre- approval. Pre-approval of non-audit services is satisfied if:

(i)the aggregate amount of all the non-audit services that were not pre-approved is reasonably expected to constitute no more than 5% of the total amount of fees paid by the Company and subsidiaries to the Company's external auditor during the fiscal year in which the services are provided;

(ii)the Company or a subsidiary did not recognize the services as non-audit services at the time of the engagement; and

(iii)the services are promptly brought to the attention of the Committee and approved, prior to completion of the audit, by the Committee or by one or more of its members to whom authority to grant such approvals has been delegated by the Committee.

3.Financial Reporting Processes, Accounting Policies and Internal Control Structure

(a)in consultation with the external auditor, review with management the integrity of the Company's financial reporting process, both internal and external;

(b)periodically review the adequacy and effectiveness of the Company's disclosure controls and procedures and the Company's internal control over financial reporting, including any significant deficiencies and significant changes in internal controls;

(c)consider the external auditor's judgments about the quality and appropriateness of the Company's accounting principles as applied in its financial reporting;

(d)consider and approve, if appropriate, changes to the Company's auditing and accounting principles and practices as suggested by the external auditor and management;

(e)review significant judgments made by management in the preparation of the financial statements and the view of the external auditor as to appropriateness of such judgments;

(f)following completion of the annual audit, review separately with management and the external auditor any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to required information;

(g)review any significant disagreement among management and the external auditor in connection with the preparation of the financial statements;

(h)review with the external auditor and management the extent to which changes and improvements in financial or accounting practices have been implemented;

(i)review any complaints or concerns about any questionable accounting, internal accounting controls or auditing matters;

(j)receive and review any disclosure from the Company's Chief Executive Officer and Chief Financial Officer made in connection with the certification of the Company's quarterly and annual financial statements, regarding:

(i)significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial data; and

(ii)any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls.

(k)establish a procedure for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters;

(l)establish a procedure for the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters;

(m)review the effect of regulatory and accounting initiatives, as well as off-balance-sheet structures, on the financial statements of the Company; and

(n)review and report to the Board with respect to all related-party transactions, unless a special committee has been established by the Board to consider a particular matter.

4.Ethical Compliance, Legal Compliance and Risk Management

(a)periodically review and recommend changes to the Board of the Company's Code of Business Conduct and Ethics (the "Code"), monitor compliance with the Code, investigate any alleged breach or violation of the Code that is reported to it and enforce the provisions of the Code. The Committee shall consider any requests for waivers from the Code, provided that a waiver from the Code for directors or executive officers must be approved by the Board. The Company shall make prompt disclosure of such waivers of the Code to Canadian and U.S. securities regulatory authorities as required by law;

(b)review, with the Company's counsel, legal compliance and legal matters that could have a significant impact on the Company's financial statements;

(c)review with the Company's external auditors, and if necessary, legal counsel or other advisors, any litigation, claim or contingency, including tax assessments, that could have a material effect upon the financial position of the Company and the manner in which these matters are being disclosed in the financial statements;

(d)assist the Board in fulfilling its risk oversight responsibilities by, among other things:

(i)ensuring that processes are in place to enable management to identify significant financial risks;

(ii)ensure that management establishes appropriate action plans to mitigate against such risks; and

(iii)monitoring management's implementation of such action plans;

(e)review the Company's insurance program on an annual basis, including the directors' and officers' (D&O) insurance and indemnities, and consider the adequacy of such coverage; and

(f)carry out a review of the Company's Whistleblower Policy in order to ensure that it effectively permits stakeholders to express any concerns regarding accounting, internal controls, auditing matters or financial matters to an appropriately independent individual.

5.Other Responsibilities

(a)review policies and procedures with respect to directors' and officers' expense accounts and management perquisites and benefits, including their use of corporate assets and expenditures related to executive travel and entertainment, and review the results of the procedures performed in these areas by the external auditor, based on the terms of reference agreed upon by the external auditor and the Committee;

(b)review expenses of the Board Chair, President, Chief Executive Officer and Chief Financial Officer annually;

(c)set compensation for (i) an external auditor engaged for the purpose of preparing an audit report or performing other audit review or attest services for the Company, (ii) any advisors employed by the Committee, and (iii) ordinary administrative expenses of the Committee;

(d)ensure that management periodically reviews the Company's information systems and cyber security strategies and programs, ensure management conducts periodic training for all employees and maintains adequate IT systems for conducting its business and cyber security protocols; and

(e)annually review and update, if applicable or necessary, this Audit Committee Charter.

F.LIMITATION OF RESPONSIBILITY

While the Committee has the responsibilities and powers provided by this Charter, it is not the duty of the Committee to plan or conduct audits or to determine that the Company's financial statements are complete and accurate and are in accordance with international financial reporting standards. This is the responsibility of management (with respect to whom the Committee performs an oversight function) and the external auditors.

G.GOVERNING LAW

This Charter shall be interpreted and enforced in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable in that province.

H.EFFECTIVE DATE

This Charter was approved and adopted by the Board on August 24, 2015, as amended on February 23, 2022, and is and shall be effective and in full force and effect in accordance with its terms and conditions from and after such date.

Consolidated Financial Statements and Notes

FOR THE YEARS ENDED DECEMBER 31, 2023 AND DECEMBER 31, 2022

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management of SilverCrest Metals Inc. (the “Company”) (“we”, “us” or “our”) have prepared the consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). The consolidated financial statements include, where necessary, amounts based on our estimates and judgement.

The Board of Directors, through the Audit Committee, is responsible for overseeing the performance of our responsibilities for financial reporting and Internal Control over Financial Reporting and Disclosure Controls and Procedures. The Audit Committee, which is composed of non-executive directors, discusses and analyzes the Company’s consolidated financial statements with management before such information is approved by the Audit Committee and submitted to securities commissions or other regulatory authorities. The external auditors have full and unrestricted access to the Audit Committee to discuss the scope of their audits, and the adequacy of the system of internal controls, and to review financial reporting issues.

The consolidated financial statements have been audited by PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm, in accordance with the standards of the Public Company Accounting Oversight Board (United States). PricewaterhouseCoopers LLP has expressed their opinion in the Report of Independent Registered Public Accounting Firm.

Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate Internal Control over Financial Reporting, as defined in National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings and Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended. Internal Control over Financial Reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS Accounting Standards.

Due to its inherent limitations, Internal Control Over Financial Reporting may not prevent or detect misstatements on a timely basis. Also, projections of any evaluation of its effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of our Internal Control over Financial Reporting as of December 31, 2023, based on the criteria set forth in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management concluded that the Company’s Internal Control over Financial Reporting was effective as of December 31, 2023.

The effectiveness of the Company’s Internal Control over Financial Reporting as of December 31, 2023 has been audited by PricewaterhouseCoopers LLP, as stated in their Report of Independent Registered Public Accounting Firm.


"N. Eric Fier"						"Anne Yong"
Chief Executive Officer						Chief Financial Officer

Vancouver, Canada

March 11, 2024

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of SilverCrest Metals Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of financial position of SilverCrest Metals Inc. and its subsidiaries (together, the Company) as of December 31, 2023 and 2022, and the related consolidated statements of earnings and comprehensive earnings, of cash flows and of changes in equity for each of the years then ended, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the COSO.

Change in Accounting Principle

As discussed in Note 21 to the consolidated financial statements, during 2023 the Company changed the manner in which it classifies cash flows from interest paid and received, previously classified as cash flows from financing and investing activities, respectively, to cash flows from operating activities.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

PricewaterhouseCoopers Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7

T: +1 604 806 7000, F: +1 604 806 7806

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Assessment of impairment indicators of long-lived assets

As described in Notes 3, 5 and 11 to the consolidated financial statements, the Company’s carrying values of property, plant and equipment and mineral property amounted to $114 million and $130 million, respectively, as of December 31, 2023. Management assesses whether any indication of impairment exists at the end of each reporting period or whenever facts and circumstances indicate that the carrying values of the assets may exceed their recoverable amounts. If such an indication exists, the recoverable amount of an asset or cash generating unit (CGU) is estimated in order to determine the extent of the impairment, if any. Management applies critical judgment in assessing whether certain information would be considered an indicator of impairment. Management considers both internal and external information to determine whether there is an indicator of impairment. The information that management considers in assessing whether there are any indicators of impairment include, but are not limited to, significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate, if any. No impairment indicators were identified by management as of December 31, 2023.

The principal considerations for our determination that performing procedures relating to the assessment of impairment indicators of property, plant and equipment and mineral property is a critical audit matter are (i) the critical judgment made by management when assessing whether there were indicators of impairment, considering information such as significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate, if any, and (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures to evaluate the audit evidence related to management’s assessment of impairment indicators of property, plant and equipment and mineral property.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s assessment of impairment indicators of property, plant and equipment and mineral property. These procedures also included, among others, evaluating the reasonableness of management’s conclusion with respect to impairment indicators, considering information such as significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate, if any, by considering (i) consistency with external market and industry data; (ii) consistency with the current performance of the CGU; (iii) the past performance of the CGU, relative to budget; and (iv) evidence obtained in other areas of the audit, as applicable.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants

Vancouver, Canada

March 11, 2024

We have served as the Company's auditor since 2019.


			Consolidated Statements of Financial Position (in thousands of U.S. dollars)


	December 31, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents (Note 21)	$	85,964	$	50,761
Bullion (Note 9)	19,191		-
Trade and other receivables	114		179
Value-added tax receivables	16,250		15,985
Inventories (Note 10)	49,798		40,203
Prepaids and other expenses	7,216		4,690
	178,533		111,818
Non-current assets
Mineral properties, plant and equipment (Note 11)	246,728		228,098
Deferred tax assets (Note 20)	22,723		-
Long-term value-added tax receivables	12,190		15,433
Total assets	$	460,174	$	355,349

Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 12, 8(a))	$	17,924	$	17,676
Tax liabilities (Note 20, 8(a))	33,614		5,740
Derivative liabilities	168		-
Lease obligations	67		116
Debt (Note 13)	-		13,393
	51,773		36,925
Non-current liabilities
Long-term lease obligations	221		260
Deferred tax liabilities (Note 20)	-		382
Long-term debt (Note 13)	-		36,198
Reclamation provision (Note 14)	5,855		4,590
Total liabilities	57,849		78,355

Equity (Note 15)
Issued capital	406,890		405,811
Share option reserve	11,338		10,945
Currency translation reserve	(3,538)		(13,793)
Deficit	(12,365)		(125,969)
Total equity	402,325		276,994
Total liabilities and equity	$	460,174	$	355,349

Commitments and contingencies (Note 8, 23)

See accompanying notes to the consolidated financial statements

Approved by the Board on March 11, 2024

"signed"

N. Eric Fier, Director

"signed"

Anna Ladd-Kruger, Director


SILVERCREST METALS INC.			5


			Consolidated Statements of Earnings and Comprehensive Earnings (in thousands of U.S. dollars except per share amounts)


	2023		2022
Revenue (Note 16)	$	245,130	$	43,510
Cost of sales
Production costs (Note 17)	(74,108)		(13,758)
Depreciation (Note 11)	(21,348)		(1,116)
Royalties	(1,368)		(216)
	(96,824)		(15,090)
Mine operating earnings	148,306		28,420
General and administrative expenses (Note 18)	(15,756)		(9,746)
Exploration and project expenses	(726)		(5,444)
Foreign exchange (losses) gains	(7,247)		27,913


Earnings from operations	124,577		41,143
Interest income	4,035		2,811
Interest and finance expense (Note 19)	(2,713)		(6,589)
Other expense	(2,653)		—
Earnings before income taxes	123,246		37,365
Income tax expense (Note 20)	(6,526)		(6,064)
Net earnings	$	116,720	$	31,301

Other comprehensive income
Currency translation adjustment	10,255		(27,987)
Total comprehensive earnings	$	126,975	$	3,314

Net earnings attributable to common shareholders
Basic earnings per share	$	0.79	$	0.21
Diluted earnings per share	$	0.79	$	0.21
Weighted average shares outstanding (in 000’s) Basic	146,882		146,164
Weighted average shares outstanding (in 000’s) Diluted	147,539		152,190

See accompanying notes to the consolidated financial statements


SILVERCREST METALS INC.			6


			Consolidated Statements of Cash Flows (in thousands of U.S. dollars)


	2023		2022
			(Note 21)
Operating activities
Net earnings for the year	$	116,720	$	31,301
Income tax expense (Note 20)	6,526		6,064
Depreciation (Note 11)	21,348		1,937
Share-based compensation expense	4,190		2,398
Unrealized foreign exchange losses (gains)	7,942		(21,868)
Interest income	(4,035)		(2,811)
Interest expense (Note 19)	1,461		6,566
Interest paid (Note 21)	(1,461)		(7,568)
Interest received (Note 21)	4,035		2,715
Income taxes paid	(977)		—
Other operating activities (Note 21)	(242)		—
Net change in non-cash working capital items (Note 21)	2,754		(28,644)
	$	158,261	$	(9,910)
Investing activities
Payments for mineral properties, plant and equipment	(51,257)		(68,489)


Purchase of bullion	(18,674)		—

Proceeds from derivatives	264		—

	$	(69,667)	$	(68,489)
Financing activities
Common share proceeds	3,131		2,467
Common share repurchases	(7,145)		—


Proceeds from debt (Note 13)	—		49,583
Repayment of debt (Note 13)	(50,000)		(92,860)


Payments of equipment leases	(112)		(159)

	$	(54,126)	$	(40,969)
Effects of exchange rate changes on cash and cash equivalents	735		(6,386)
Increase (decrease) in cash and cash equivalents	35,203		(125,754)
Cash and cash equivalents at the beginning of the year	50,761		176,515
Cash and cash equivalents at the end of the year	$	85,964	$	50,761

Supplemental cash flow information and restatement of prior year (Note 21)

See accompanying notes to the consolidated financial statements


SILVERCREST METALS INC.			7


			Consolidated Statements of Changes in Equity (in thousands of U.S. dollars except for number of shares)


	Attributable to equity holders of the Company
	Issued shares	Issued capital		Share option reserve		Currency translation reserve		Deficit		Total equity
Balance, December 31, 2021	145,649	$	401,736	$	9,782	$	14,194	$	(157,442)	$	268,270
Total comprehensive earnings
Net earnings for the year	—	—		—		—		31,301		31,301
Foreign exchange translation	—	—		—		(27,987)		—		(27,987)
	—	—		—		(27,987)		31,301		3,314
Shares issued on the exercise of stock options	1,507	4,075		(1,608)		—		—		2,467
Share-based compensation on option grants	—	—		2,943		—		—		2,943
Stock options forfeited	—	—		(172)		—		172		—
Balance, December 31, 2022	147,156	405,811		10,945		(13,793)		(125,969)		276,994
Total comprehensive earnings
Net earnings for the year	—	—		—		—		116,720		116,720
Foreign exchange translation	—	—		—		10,255		—		10,255
	—	—		—		10,255		116,720		126,975
Shares issued on the exercise of stock options	1,283	5,108		(1,977)		—		—		3,131
Share-based compensation on option grants	—	—		2,370		—		—		2,370
Share repurchased and cancelled	(1,504)	(4,029)		—		—		(3,116)		(7,145)
Balance, December 31, 2023	146,935	406,890		11,338		(3,538)		(12,365)		402,325

See accompanying notes to the consolidated financial statements


SILVERCREST METALS INC.			8


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


1. Nature of Operations

SilverCrest Metals Inc. (the "Company" or "SilverCrest") is a corporation governed by the Business Corporations Act (British Columbia). The Company’s corporate office and principal address is located at 501-570 Granville Street, Vancouver, British Columbia, Canada, V6C 3P1. The Company’s registered office is 19th Floor, 885 West Georgia Street, Vancouver, BC, Canada, V6C 3H4. SilverCrest shares trade on the Toronto Stock Exchange under the symbol SILV and the NYSE-American under the symbol SILV.

SilverCrest engages in silver and gold mining and related activities, including exploration and mine development from its Las Chispas mine located in Sonora, Mexico.


2. Basis of Preparation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”).

These consolidated financial statements were approved for issuance by the Board of Directors on March 11, 2024.


3. Material Accounting Policies

a)Presentation currency

The functional currency of the Company and each of its subsidiaries is the United States dollar ("USD"). The Company's presentation currency is also USD.

b)Basis of measurement

These consolidated financial statements have been prepared on an historical cost basis, except for those assets and liabilities that are measured at revalued amounts or fair values at the end of each reporting period.

c)Basis of consolidation

The accounts of the Company and its subsidiaries, which are controlled by the Company, have been included in these consolidated financial statements. Control is achieved when the Company is exposed, or has rights, to variable returns from the investee and when the Company has the ability to affect those returns through its power over the investee. Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition up to the effective date of disposition or loss of control.

The Company's principal subsidiary at December 31, 2023 was the wholly-owned Compañía Minera La Llamarada, S.A. de C.V. located in Mexico whose principal project and purpose is ownership and operation of the Las Chispas Operation.

d)Foreign currencies

The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The Company considered the functional currency of the parent entity to be the Canadian Dollar (“CAD”) until June 30, 2023, after which the functional currency changed to USD. The functional currency was determined and treated in accordance with IAS 21 The effects of changes in foreign exchange rates which includes accounting for the functional currency change on a prospective basis.The Company considers the functional currency for its Mexican operations to be USD.

Foreign currency transactions

Foreign currency balances and transactions are translated into the respective functional currencies of each entity as follows:

•Monetary assets and liabilities are translated at period end exchange rates;

•Non-monetary assets and liabilities are translated at historical exchange rates in effect on the date transactions occurred;

•Revenue and expenses are translated using exchange rates approximating those in effect on the date transactions occurred; and

•Exchange gains and losses are included in profit or loss.


SILVERCREST METALS INC.			9


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

e)Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments that are readily convertible to known amounts of cash with a term to maturity at the date of purchase of 90 days or less which are subject to an insignificant risk of change in value.

f)Bullion and bullion options

Bullion includes gold and silver bullion which the Company purchases from bullion banks to hold as treasury assets in accordance with its liquidity management policies. Bullion is initially recorded at cost on acquisition and subsequently measured at fair value at the end of each reporting period. Changes in the fair value are recognized in the period the changes occur. These changes are recorded to other expense in the consolidated statements of earnings and comprehensive earnings.

Bullion options include sold call options and purchased put options. Call options are instruments that give the option holder the right, but not the obligation, to purchase gold or silver at an agreed upon price in the future. Put options are instruments that give the option holder the right, but not the obligation, to sell gold or silver at an agreed upon price in the future. The Company receives an option premium in cash on selling the option, which is recorded as either an asset or a liability. The value of the option is remeasured using the Black-Scholes option pricing model at each reporting date, with gains or losses recorded to other expense, along with a corresponding increase to the derivative liability which is included in derivative liabilities.

g)Value-added tax receivable

Value-added tax receivables includes Goods and Services Tax receivables generated on the purchase of supplies and services and are refundable from the Canadian government. Value-added tax receivables and Long-term value-added tax receivables includes value-added taxes ("VAT") receivables generated on the purchase of supplies and services and are receivable from the Mexican government. The Company classifies VAT receivables as non-current if it does not expect collection of certain amounts to occur within the next year. The recovery of VAT involves a complex application process and the timing of collection of VAT receivables is uncertain. The Company has not recognized a loss allowance for expected credit losses as VAT receivables are not contract assets and therefore outside the scope of IFRS 9 Financial Instruments.

h)Inventories

Inventories include stockpile, in process, finished and materials and supplies, and are measured at the lower of weighted average cost or net realizable value ("NRV"). For in process and finished inventories, cost includes all direct costs incurred in production, including direct labour and materials, depreciation and depletion, and directly attributable overhead costs. NRV is calculated as the estimated price at the time of sale based on prevailing and long-term metal prices less estimated future costs to convert the inventories into saleable form, transportation costs, and estimated costs to sell.

Stockpile represents ore that has been extracted from the mine and is available for further processing. Costs added to stockpiled ore inventory is based on current mining cost per ounce incurred up to the point of stockpiling the ore and are removed at the weighted average cost per ounce. Costs are included in in process inventory based on current costs incurred up to the point prior to the refining process, including applicable depletion of mining interests, and removed at the weighted average cost per recoverable ounce of silver equivalent. The average costs of finished inventories represent the average costs of in process inventory incurred prior to the refining process, plus applicable refining and transportation costs.

In process inventory includes inventory in the milling process, in tanks, and precipitates. Finished inventory includes metals in their final stage of production prior to sale, primarily doré at the mine site or in transit, and refined metal held at a refinery.

Any write-downs of inventories to NRV are recorded as cost of sales. If there is a subsequent increase in the value of inventories, the previous write-downs to NRV are reversed to the extent that the related inventories have not been sold.

Materials and supplies are measured at weighted average cost. Cost includes acquisition, freight, and other directly attributable costs. In the event that the NRV of the finished inventories, the production of which the materials and supplies are held for use in, is lower than the expected cost of the finished product, the material and supplies are written down to their NRV.


SILVERCREST METALS INC.			10


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

i)Mineral property, plant, and equipment

Exploration and evaluation assets - acquisition costs

The costs of acquiring exploration properties, including transaction costs, are capitalized as exploration and evaluation assets. All other exploration and evaluation expenditures are expensed in the period in which they are incurred.

Acquisition costs for each exploration property are carried forward as an asset provided that one of the following conditions is met:

•Such costs are expected to be recouped in full through the successful exploration and development of the exploration property or alternatively, by sale; or

•Exploration and evaluation activities in the property have not reached a stage which permits a reasonable assessment of the existence of economically recoverable reserves, but active and significant operations in relation to the exploration property are continuing or planned.

The Company performs an assessment for impairment of capitalized amounts whenever the facts and circumstances indicate that the asset may exceed its recoverable amount. In the case of undeveloped properties, there may be only inferred resources to allow management to form a basis for the impairment review. The review is based on the Company's intentions for the development of such an exploration property and management's determination that the exploration property is not viable. If an exploration property is considered to be impaired, all unrecoverable costs associated with the property are charged to the consolidated statement of earnings and comprehensive earnings at the time the determination is made. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. If the recoverable amount of an individual asset cannot be determined, the recoverable amount is determined for the cash generating unit ("CGU") to which the asset belongs. Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in the consolidated statement of earnings and comprehensive earnings.

Exploration and evaluation expenditures

Exploration and evaluation costs, net of incidental revenues, are charged to the consolidated statement of earnings and comprehensive earnings in the year incurred until the technical feasibility and commercial viability of the extraction of mineral reserves or resources from a particular mineral property has been determined, in which case subsequent exploration costs and the costs incurred to develop a property are capitalized into mineral property, plant, and equipment. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, such as but not limited to: the extent to which mineral reserves or mineral resources have been identified through a feasibility study or similar level document; the results of optimization studies and further technical evaluation carried out to mitigate project risks identified in the feasibility study; the status of environmental permits, and the status of mining leases or permits.

Mineral property - development phase

Once the technical feasibility and commercial viability of an exploration property has been determined, it is then considered to be a mine under development and is reclassified to mineral property. The carrying value of capitalized exploration and evaluation acquisition costs are tested for impairment before they are transferred to mineral property.

All costs relating to the construction, installation, or completion of a mine that are incurred subsequent to the exploration and evaluation stage are capitalized to mineral property.

The Company assesses the stage of each mine under development to determine when an asset reaches the stage when it is in the condition for it to be capable of operating in a manner intended by management ("commercial production"). Determining when an asset has achieved commercial production is a matter of judgement. Depending on the specific facts and circumstances, the following factors may indicate that commercial production has commenced:

•all major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed;

•the completion of a reasonable period of testing of the mine plant and equipment;

•the ability to produce saleable product (e.g., the ability to produce ore within specifications);


SILVERCREST METALS INC.			11


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

•the mine has been transferred to operating personnel from internal development groups or external contractors;

•the mine or mill has reached a predetermined percentage of design capacity;

•mineral recoveries are at or near the expected production level; and

•the ability to sustain ongoing production of ore (i.e., the ability to continue to produce ore at a steady or increasing level).

Proceeds before intended use

Revenue from the sale of gold and silver ounces recovered before items of mineral property, plant, and equipment, such as the mine or process plant, are operating in the manner intended by management are recognized, along with related costs, in the consolidated statement of earnings and comprehensive earnings.

Mineral property - production phase

When management determines that a property is capable of commercial production, depletion of costs capitalized during development begins.

Once a mineral property has been brought into commercial production, the costs of any additional work on that property are expensed as incurred, except for exploration and development programs which constitute a betterment, which will be deferred and depleted over the remaining useful life of the related assets. Mineral properties include reclamation and closure provision costs related to the reclamation of mineral properties. Mineral properties are derecognized upon disposal, or impaired when no future economic benefits are expected to arise from continued use of the asset or the carrying value of the CGU exceeds its recoverable amount. Any gain or loss on disposal of the asset, determined as the difference between the proceeds received and the carrying amount of the asset is recognized in the consolidated statement of earnings and comprehensive earnings.

Mineral properties are depleted on the unit-of-production basis using the mineable tonnes extracted from the mine in the period as a percentage of the total mineable tonnes to be extracted in current and future periods based on mineral reserves. Mineral properties are recorded at cost, net of accumulated depletion and accumulated impairment losses and are not intended to represent future values. Recovery of capitalized costs is dependent on successful development of economic mining operations or the disposition of the related mineral property.

Property, plant, and equipment

Property, plant, and equipment is recorded at historical cost less accumulated depreciation and impairment charges.

The cost of an item of property, plant, and equipment includes the purchase price or construction cost, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use, an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, and for qualifying assets, the associated borrowing costs.

Where an item of plant and equipment is comprised of major components with different useful lives, the components are accounted for as separate items of plant and equipment.

Plant and equipment is depreciated to its estimated residual value using either the straight-line or the units-of-production method over the estimated useful lives of the individual assets. The major categories of plant and equipment and their useful lives and depreciation method are as follows:


Category	Estimated life	Depreciation method
Computer equipment	3-4 years	Straight-line
Mining equipment	5-15 years	Straight-line
Vehicles	4 years	Straight-line
Buildings	Life-of-mine	Straight-line
Mine plant and related equipment	Life-of-mine	Straight-line
Underground infrastructure	Life-of-mine	Straight-line

Assets under construction are not depreciated until available for their intended use. Non-depreciable property, such as land, is recorded at historical cost, less any impairment charges.

The Company conducts a review of residual values, useful lives, and depreciation methods annually and when events and circumstances indicate such a review should be made. Any changes in estimates that arise from this review are accounted for prospectively.


SILVERCREST METALS INC.			12


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

An item of property, plant, and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in the statement of consolidated income (loss) and comprehensive income (loss).

j)Reclamation and closure provision

The Company recognizes liabilities for statutory, contractual, constructive, or legal obligations, including those associated with the reclamation and closure of exploration and evaluation assets, mineral properties, plant, and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a liability for an environmental rehabilitation obligation is recognized at its present value if a reasonable estimate of cost can be made. The Company records the present value of estimated future cash flows, adjusted for inflation, associated with reclamation as a liability, at a risk-free rate, when the liability is incurred and increases the carrying value of the related assets for that amount. Subsequently, these capitalized reclamation and closure costs are amortized over the life of the related assets. At the end of each period, the liability is increased to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying any initial estimates (additional reclamation and closure costs). The Company recognizes its environmental liability on a site-by-site basis when it can be reliably estimated. Environmental expenditures related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible are charged to the consolidated statement of earnings and comprehensive earnings.

k)Share-based compensation and payments

The Company grants stock options to buy common shares of the Company to directors, officers, employees, and consultants. The cost of stock options granted is recorded based on the estimated fair-value at the grant date and is either capitalized to the consolidated statement of financial position or charged to the consolidated statement of earnings and comprehensive earnings over the vesting period. Where stock options are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes Option Pricing Model. Compensation expense is recognized over the tranche's vesting period by either capitalization to the consolidated statement of financial position or a charge to the consolidated statement of earnings and comprehensive earnings, with a corresponding increase to reserves based on the number of options expected to vest. Consideration paid for the shares on the exercise of stock options is credited to capital stock. The number of options expected to vest is reviewed at least annually, with any impact being recognized immediately.

In situations where equity instruments are issued to non-employees and some or all the goods or services received by the entity as consideration cannot be specifically identified, they are measured at fair value of the share-based payment. Otherwise, share-based payments to non-employees are measured at the fair value of goods or services received.

Share unit plan

On June 15, 2021, the shareholders of the Company approved the adoption of a Equity Share Unit Plan for the Company (the "SU Plan") pursuant to which the Company may grant share units ("SUs"), including restricted share units ("RSUs"), performance share units ("PSUs") and deferred share units ("DSUs"). The SU Plan provides for up to 1.5% of the outstanding common shares of the Company from time to time to be issuable to settle share units granted under the SU Plan.

The SUs will be subject to any combination of time-based vesting and performance-based vesting conditions as the Board of Directors shall determine from time to time. Unless set forth in the particular award agreement, the Board of Directors may elect one or any combination of the following settlement methods for the settlement of SUs: issuing shares from treasury, causing a broker to purchase shares on the TSX; and/or paying cash. While the SUs issued during 2023 and 2022 did not specify a method of settlement, the Company determined that at least a portion would be settled by a brokered purchase or cash. Accordingly, the Company recorded the value of SUs issued and vested as an accrued liability.

DSUs

DSUs vest immediately and become payable upon the retirement of the holder. The share-based compensation expense related to these DSUs was calculated using the fair value method based on the market price of the Company's shares at the end of each reporting period and the Company records a corresponding liability in accounts payable and accrued liabilities.


SILVERCREST METALS INC.			13


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

RSUs

Share-based compensation of RSUs is calculated using the fair-value method based on the market price of the Company's shares at the grant date and is recorded over the vesting period. Where RSUs are subject to vesting, each vesting tranche is considered a separate award with its own vesting period and grant date fair value. Share-based compensation is recognized over the tranche's vesting period as either an expense, inventories, exploration and evaluation expenditure, or capitalized as mineral property, plant, and equipment, with a corresponding change in accrued liabilities. The value of vested RSUs is remeasured at each reporting date to the current market price of the Company's shares.

PSUs

Share-based compensation of PSUs is calculated using the fair-value method based on the market price of the Company's shares at the grant date and is recorded over the vesting period. Share-based compensation is recognized on a straight-line method basis, over the PSU's vesting period as either an expense, inventories, or capitalized as mineral property, plant, and equipment, with a corresponding change in accrued liabilities. The value of vested PSUs is remeasured at each reporting date to the current market price of the Company's shares.

l)Related party transactions

Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control, and related parties may be individuals, such as key management personnel, including immediate family members of the individual, or corporate entities, including the Company's wholly owned subsidiaries. A transaction is a related party transaction when there is a transfer of resources or obligations between related parties.

m)Earnings per share

Basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted earnings per share is computed similarly to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and share units, if dilutive.

The number of additional shares is calculated by assuming that outstanding stock options and share units were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods.

n)Revenue recognition

The Company's primary source of revenue is the sale of refined gold and silver and its performance obligations are the delivery of refined gold and silver to its customers.

Revenue from the sale of metal is recognized when the buyer obtains control of the metal. When considering whether the Company has satisfied its performance obligations, it considers the indicators of the transfer of control, which include, but are not limited to, whether: the Company has a present right to payment; the customer has legal title to the metal; the Company has transferred physical possession of the metal to the customer; and, the customer has the significant risks and rewards of ownership of the metal. Revenue is recognized at the time when the risks and rewards of ownership and title transfers to the customer, which is when the Company irrevocably instructs the refinery to deliver the metals to the customer.

The Company sells gold and silver to bullion banks who are members of the London Bullion Market Association. The sales price is fixed on the date of sale based on spot price or by mutual agreement.

o)Taxation

Income tax expense comprises current and deferred income taxes. Current and deferred income taxes are recognized in profit or loss except to the extent that they relate to items recognized directly in equity. Current income tax expense is the expected tax payable on taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years.

The Company follows the asset and liability method of accounting for income taxes whereby deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets


SILVERCREST METALS INC.			14


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

and liabilities are measured using enacted or substantively enacted tax rates and laws expected to apply in the years in which temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in operations in the period of substantive enactment.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is not recorded. Deferred income tax assets and liabilities are presented as non-current in the financial statements.

p)Financial instruments

The Company classifies its financial instruments in the following categories: at fair value through profit and loss ("FVTPL"), at fair value through other comprehensive income (loss) ("FVTOCI"), or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company's business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL.

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are recognized in profit or loss for the period.

An 'expected credit loss' impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to the present value of estimated future cash flows associated with the asset, discounted at the financial asset's original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period.

The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statement of earnings and comprehensive earnings.


4. Changes in Accounting Standards

Application of New and Revised Accounting Standards

We have adopted the amendments to IAS 1 Presentation of Financial Statements regarding the disclosure of material accounting policies, amendments to IAS 8 Changes in Accounting Estimates and Errors regarding the definition of accounting estimates, and amendments to IAS 12 Income Taxes regarding deferred tax related to assets and liabilities arising from a single transaction, which were effective for annual periods beginning on or after January 1, 2023. In addition, we have adopted the amendments to IAS 12 Income Taxes regarding relief from deferred tax accounting for top-up tax under Pillar Two, which was effective from May 23, 2023 onwards. These amendments did not have a material impact on the Company.

Accounting Standards Issued but Not Yet Applied

Presentation of Financial Statements (Amendments to IAS 1)

The amendments to IAS 1, clarifies the presentation of liabilities. The classification of liabilities as current or non-current is based on contractual rights that are in existence at the end of the reporting period and is affected by expectations about whether an entity will exercise its right to defer settlement. A liability not due over the next twelve months is classified as non-current even if management intends or expects to settle the liability within twelve months. The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. Covenants to be


SILVERCREST METALS INC.			15


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

compiled with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods beginning on or after January 1, 2024. The implementation of this amendment is not expected to have a material impact on the Company.

There are no other standards or amendments or interpretations to existing standards issued but not yet effective that are expected to have a material impact on the Company.


5. Significant Judgments and Estimates

The preparation of these consolidated financial statements in accordance with IFRS Accounting Standards requires management to make judgments, estimates, and assumptions that affect the reported amounts and the valuation of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenditures during the year.

These judgments and estimates are continuously evaluated and are based on management's experience and knowledge of the relevant facts and circumstances. Actual results may differ from the estimates. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively. Information about such judgments and estimates is contained in the description of accounting policies (note 3) and/or other notes to the financial statements. Management has made the following critical judgments and estimates:

Critical judgments in applying accounting policies

The critical judgments that the Company's management has made in the process of applying the Company's accounting policies, apart from those involving estimations, that have the most significant effect on the amounts recognized in the Company's consolidated financial statements are as follows:

Assessment of impairment indicators of non-current assets

Management assesses whether any indication of impairment exists at the end of each reporting period. Judgment is required in assessing whether certain factors would be considered an indicator of impairment. The Company considers both internal and external information to determine whether there is an indicator of impairment and, accordingly, whether impairment testing is required. The information the Company considers in assessing whether there is an indicator of impairment includes, but is not limited to, significant decreases in future gold and silver prices, increases in operating cost and future capital costs estimates, decreases in estimated mineral reserves, decreases in estimated production and increases in the discount rate. No impairment indicators were identified by management as of December 31, 2023.

Functional currency

The functional currency for an entity is the currency of the primary economic environment in which the entity operates. The Company has determined the functional currency of the parent entity and its subsidiaries to be USD. Previously, the functional currency of the parent entity was CAD but effective July 1, 2023, the Company determined it was USD. Determination of functional currency may involve certain judgments to determine the primary economic environment, and the Company reconsiders the functional currency of its entities if there is a change in events and conditions which determine the primary economic environment.


6. Key Sources of Estimation Uncertainty

The significant assumptions about the future and other major sources of estimation uncertainty as at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of the Company's assets and liabilities in the next 12 months are as follows:

Mineral reserves and the life of mine plan

The Company estimates its mineral reserves in accordance with the requirements of National Instrument 43-101. Estimates of the quantities of the mineral reserves form the basis for the Company's life of mine plans, which are used for the calculation of depletion expense under the units of production method, impairment tests, and forecasting the timing of the payments related to the environmental reclamation provision.

Significant estimation is involved in determining the reserves and resources included within the Company's life of mine plans. Changes in forecast prices of commodities, exchange rates, production costs, or recovery rates may result in the Company's life of mine plan being revised and such changes could impact depletion rates, asset carrying values, and our environmental reclamation provision.


SILVERCREST METALS INC.			16


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

Collectability and classification of VAT recoverable

VAT recoverable is collectible from the government of Mexico. The collection of VAT is subject to a complex application and collection process and therefore, there is risk related to the collectability and timing of payment from the Mexican government. The Company uses its best estimates based on the facts known at the time and its experience to determine its best estimate of the collectability and timing of these recoveries. Changes in the assumptions regarding collectability and the timing of collection could impact the valuation and classification as a current or non-current asset associated with VAT recoverable.

Impairment of non-current assets

Non-current assets are tested for impairment when indicators of impairment are present. Calculating the estimated fair values of cash generating units for non-current asset impairment tests requires management to make estimates and assumptions with respect to future gold and silver prices; future capital cost estimates; operating cost estimates; reductions in the estimated mineral reserves; decreases in estimated production; and, the discount rate. Reductions in metal price forecasts; increases in estimated future costs of production; increases in estimated future non-expansionary capital expenditures; reductions in the amount of recoverable resources, and exploration potential; and/or adverse current economics can result in a write-down of the carrying amounts of the Company's non-current assets.

Estimate of reclamation and closure cost provision

The Company’s provision for reclamation and closure costs represents management’s best estimate of the present value of the future cash outflows required to settle the liability which reflects estimates of future costs, the timing of the cash flows associated with the future costs, inflation, and movements in foreign exchange rates when liabilities are anticipated to be settled in a currency other than USD. Cost estimates can vary in response to many factors including changes to the relevant legal requirements, whether closure plans achieve intended reclamation goals, the emergence of new restoration techniques, or experience at other mine sites, local inflation rates, and foreign exchange rates. Future changes to environmental laws and regulations could increase the extent of reclamation and rehabilitation work required to be performed by the Company. Increase in future costs could materially impact the amounts charged to operations for reclamation and closure. The expected timing of expenditures can also change, for example, in response to changes in Mineral Reserve Estimate, production rates, or economic conditions. The Company’s assumptions are reviewed at the end of each reporting period and adjusted to reflect management’s current best estimate and changes in any of the aforementioned factors can result in a material change to the provision recognized by the Company.

Inventories valuation and cost

The measurement of inventories, including the determination of its NRV, especially as it relates to metal processing inventory involves the use of estimates.

Las Chispas has stockpile inventory that is valued at the lower of weighted average cost and NRV. This is the same for in-process inventories and finished inventories. In determining the value of these stockpiles, the Company makes estimates of tonnages, grades, and the recoverability of ore in these stockpiles to estimate its value. Changes in these estimates can result in a change in carrying amounts of inventory, which could result in charges to cost of sales. The determination of forecast sales prices, recovery rates, grade, assumed contained metal in stockpiles, in-process inventories and processing and selling costs all requires significant assumptions that impact the carrying value of inventories.


7. Management of Capital

The Company’s objective when managing its capital is to maintain its ability to continue as a going concern while at the same time maximizing the growth of its business and providing returns to its shareholders. The Company’s capital structure consists of shareholders’ equity (comprising issued capital plus share option reserve plus currency translation reserve, plus deficit) with a balance of $402 million as at December 31, 2023 (2022 - $277 million).

The Company manages its capital structure and makes adjustments based on changes to its economic environment and the risk characteristics of the Company’s assets. The Company’s capital requirements are effectively managed based on the Company having a thorough reporting, planning and forecasting process to help identify the funds required to ensure the Company is able to meet its operating and growth objectives. The Company is not subject to externally imposed capital requirements and the Company’s overall objective with respect to capital risk management remains unchanged from the year ended December 31, 2022.


SILVERCREST METALS INC.			17


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


8. Financial Instruments

a)Carrying values and measurement of financial assets and liabilities


December 31, 2023	Amortized cost		FVTPL		Total
Financial assets
Cash and cash equivalents	$	85,964	$	-	$	85,964
Accounts receivable	114		-		114

Financial liabilities
Accounts payable and accrued liabilities	14,080		3,844		17,924
Derivative liabilities	$	-	$	168	$	168


December 31, 2022	Amortized cost		FVTPL		Total
Financial assets
Cash and cash equivalents	$	50,761	$	-	$	50,761
Accounts receivable	$	179	$	-	$	179

Financial liabilities
Accounts payable and accrued liabilities(1)	15,294		2,382		17,676
Debt	$	49,591	$	-	$	49,591

(1)Excludes $5.7 million of tax liabilities previously presented within accounts payable and accrued liabilities, now presented as part of tax liabilities.

b)Derivative instruments

The Company's derivatives are comprised of bullion contracts. During the year ended December 31, 2023, the Company sold call options and purchased put options. The Company receives an option premium in cash on selling the option, which is recorded as either an asset or a liability. The value of the option is remeasured using the Black-Scholes option pricing model at each reporting date, with gains or losses recorded as other expense, along with a corresponding increase to the derivative liabilities.

The gains on derivatives for the year ended December 31, 2023 were as follows with no derivatives outstanding during 2022:


			2023

Unrealized gains on derivatives			95

c)Fair value information

i.Fair Value Measurement

The categories of the fair value hierarchy that reflect the inputs to valuation techniques used to measure fair value are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Inputs for the asset or liability based on unobservable market data

The levels in the fair value hierarchy into which the Company’s financial assets and liabilities that are measured and recognized on the Consolidated Statements of Financial Position at fair value on a recurring basis were categorized as follows:

At December 31, 2023

Level 1

Level 2

Assets and Liabilities:

Derivative liabilities

—

168


SILVERCREST METALS INC.			18


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

The methodology and assessment of inputs for determining the fair value of financial assets and liabilities as well as the levels of hierarchy for the Company’s financial assets and liabilities measured at fair value remain unchanged from that at December 31, 2022.

ii.Valuation Techniques

Derivative assets and liabilities

The Company’s derivatives were comprised of bullion contracts which are valued using observable market prices.

d)Financial Instruments and Related Risks

The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth and shareholder returns. The principle financial risks to which the Company is exposed are:

i)Credit risk

ii)Liquidity risk

iii)Market risk

1.Currency risk

2.Interest rate risk

3.Price risk

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

i.Credit Risk

The Company limits exposure to credit risk on liquid financial assets through maintaining its cash and cash equivalents and bullion with high‐credit quality financial institutions. The Company has liquid financial assets on deposit with or held by multiple high‐credit quality financial institutions as a risk mitigation practice. The Company’s cash and cash equivalents are on deposit with the Bank of Montreal ("BMO") and the Bank of Nova Scotia (“BNS”) in Canada and BNS in Mexico. Bullion is stored with BMO in Canada. The Company has not recognized any expected credit losses with respect to interest receivable as the amounts are due from high‐credit quality financial institutions and the risk of default is considered negligible. The carrying amount of financial assets, as stated in the consolidated statement of financial position, represents the Company’s maximum credit exposure.

ii.Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company's cash and cash equivalents are invested in business accounts with quality financial institutions and are available on demand to fund the Company's operations.

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following tables summarize the remaining contractual maturities of the Company's financial liabilities and operating and capital commitments on an undiscounted basis:


	Payments due by period 2023
	Less than 1 year		Between 1 - 3 years		Between 4 - 5 years		After 5 years		Total
Accounts payable and accrued liabilities	$	17,924	$	-	$	-	$	-	$	17,924
Tax liabilities	33,614		-		-		-		33,614
Lease liabilities	69		134		80		84		367
Reclamation and closure provision(1)	-		-		-		8,696		8,696
	$	51,607	$	134	$	80	$	8,780	$	60,601

(1)Represents undiscounted uninflated future payments for the expected cost of mine reclamation and closure.


SILVERCREST METALS INC.			19


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


	Payments due by period 2022
	Less than 1 year		Between 1 - 3 years		Between 4 - 5 years		After 5 years		Total
Accounts payable and accrued liabilities	$	17,676	$	-	$	-	$	-	$	17,676
Tax liabilities	5,740		-		-		-		5,740
Lease liabilities	120		137		110		115		482
Credit Facility	16,881		39,683		-		-		56,564
Reclamation and closure provision(1)	-		-		-		6,845		6,845
	$	40,417	$	39,820	$	110	$	6,960	$	87,307

(1)Represents undiscounted uninflated future payments for the expected cost of mine reclamation and closure. Recast amounts previously reported as undiscounted inflated payments as undiscounted uninflated payments.

(2)Tax liabilities were previously included in accounts payable and accrued liabilities and have been recast separately.

The Company believes its cash and cash equivalents at December 31, 2023 of $86.0 million, bullion of $19.2 million, undrawn $70.0 million Revolving Facility, and continuing revenue and profitable operations are sufficient to settle its commitments through the next 12 months.

iii.Market Risk

1.Currency Risk

The functional and reporting currency for all of SilverCrest's operating segments is USD and the Company reports results using USD; however, the Company operates in jurisdictions that utilize the Canadian dollar ("CAD") and Mexican peso ("MXN"). As a consequence, the financial results of the Company’s operations as reported in USD are subject to changes in the value of the USD relative to these local currencies. Since the Company’s sales are denominated in USD and a portion of the Company’s operating costs and capital spending are in local currencies, the Company is negatively impacted by strengthening local currencies relative to the USD and positively impacted by the inverse.

The Company’s net earnings are affected by the revaluation of its monetary assets and monetary liabilities at each balance sheet date. The Company has reviewed its monetary assets and monetary liabilities and is exposed to foreign exchange risk through financial assets and liabilities and deferred tax assets and liabilities denominated in currencies other than USD, as shown in the tables below. The Company estimates that a 1% change in the exchange rate of the foreign currencies in which its December 31, 2023 non-USD net monetary liabilities were denominated would result in an income before taxes change of about $0.3 million (2022 - $0.5 million).


	CAD		MXN		Total
December 31, 2023
Cash and cash equivalents	$	9,502	$	6,421	$	15,923
Accounts receivable	6		70		76
Value-added taxes receivable	47		28,393		28,440
Total financial assets	9,555		34,884		44,439

Less: accounts payable and accrued liabilities	(6,445)		(5,578)		(12,023)
Net financial assets	$	3,110	$	29,306	$	32,416


SILVERCREST METALS INC.			20


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


	USD		MXN		Total
December 31, 2022
Cash and cash equivalents	$	29,502	$	318	$	29,820
Accounts receivable	111		8		119
Value-added taxes receivable	-		31,378		31,378
Total financial assets	29,613		31,704		61,317

Less: accounts payable and accrued liabilities	(428)		(3,010)		(3,438)
Less: debt	(49,591)		-		(49,591)
Net financial assets	$	(20,406)	$	28,694	$	8,288

2.Interest Rate Risk

Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates. The average interest rate earned by the Company during the year ended December 31, 2023 on its cash and cash equivalents and short-term investments was 5.3% (2022 - 4.6%). A 1% increase or decrease in the interest earned from financial institutions on cash and short-term investments would result in approximately a $0.8 million change in the Company’s earnings before income taxes (2022 – $0.4 million).

On November 29, 2022, the Company's entered into a $120 million senior secured credit facility (the "Credit Facility") comprised of a $50 million term facility (the "Term Facility") and a $70 million revolving facility (the "Revolving Facility") (Note 13). The Company repaid the Term Facility during the first five months of 2023 and incurred a weighted average interest rate of 7.79% during that time (2022 - 8.01% on amounts drawn from November 29, 2022 until December 31, 2022). There were no amounts drawn on the Revolving Facility during the year ended December 31, 2023 or comparative period.

3.Price Risk

The Company is exposed to price risk on precious metals that impact the valuation of the Company’s derivative positions, comprised of gold and silver call options written, which has a direct and immediate impact on net earnings. The prices of precious metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that precious metal prices will not be subject to wide fluctuations in the future. A substantial or extended change in precious metal prices could have an adverse effect on the Company’s financial position, income, and cash flows.


9. Bullion

The Company purchases gold and silver bullion from a bullion bank as part of its liquidity management program. The Company did not hold bullion during 2022.

Bullion held by the Company was comprised of the following:


	Cost		Fair value
	December 31, 2023		December 31, 2023
Gold bullion	$	5,535	$	5,743
Silver bullion	13,139		13,448
	$	18,674	$	19,191

The Company records bullion at fair value with gains of $0.6 million included in other expense for the year ended December 31, 2023.


SILVERCREST METALS INC.			21


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


10. Inventories

The Company’s inventories related to the Las Chispas Operation were comprised of the following:


	December 31, 2023		December 31, 2022
Stockpile	$	27,115	$	25,669
In-process	2,055		4,353
Finished	11,496		4,897
Materials and supplies	9,132		5,284
	$	49,798	$	40,203


11. Mineral Properties, Plant, and Equipment


		December 31, 2023						December 31, 2022
		Cost		Accumulated Depreciation		Carrying Value		Cost		Accumulated Depreciation		Carrying Value
Producing:
Mexico	Las Chispas	$	281,371	$	(37,130)	$	244,241	221,280		(7,884)		213,396

Non-Producing:
Mexico	Other	2,748		(261)		$	2,487	331		(280)		51
Canada	Other	58		(58)		$	-	15,328		(677)		14,651
		2,806		(319)		2,487		15,659		(957)		14,702
Total		$	284,177	$	(37,449)	$	246,728	$	236,939	$	(8,841)	$	228,098


SILVERCREST METALS INC.			22


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


	Mining Properties
	Depletable		Non-depletable
	Reserves and Resources		Exploration and Evaluation		Plant and Equipment		Total
Cost
At December 31, 2021	$	62,285	$	2,488	$	103,100	$	167,873
Additions	58,006		-		24,715		82,721
Transfers to inventories	(13,655)		-		-		(13,655)
At December 31, 2022	106,636		2,488		127,815		236,939
Additions	37,518		-		11,791		49,309
Disposals	-		-		(2,071)		(2,071)
Transfers	152		(152)		-		-
At December 31, 2023	$	144,306	$	2,336	$	137,535	$	284,177

Accumulated depreciation and depletion
At December 31, 2021	$	-	$	-	$	(2,187)	$	(2,187)
Depreciation	(1,536)		-		(5,118)		(6,654)
At December 31, 2022	(1,536)		-		(7,305)		(8,841)
Depreciation	(9,554)		-		(11,794)		(21,348)
Depreciation charge captured in inventory	(3,509)		-		(4,457)		(7,966)
Disposals	221		-		485		706
At December 31, 2023	$	(14,378)	$	-	$	(23,071)	$	(37,449)

Carrying amounts
At December 31, 2022	$	105,100	$	2,488	$	120,510	$	228,098
At December 31, 2023	$	129,928	$	2,336	$	114,464	$	246,728


12. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of:


	2023		2022
Trade payables	$	2,938	$	5,612
Accrued liabilities	9,890		8,954
Payroll related liabilities	1,957		728
Share unit accrued liabilities	3,139		2,382
	$	17,924	$	17,676


SILVERCREST METALS INC.			23


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


13. Debt

A summary of debt transactions is as follows:


	2023		2022
Term Facility
Balance, beginning of year	$	49,591	$	-
Drawdown	-		50,000
Transaction costs	-		(417)
Accretion	409		8
Interest expense	1,030		354
Interest payments	(1,030)		(354)
Debt repayment	(50,000)		-
Balance, end of year	$	-	$	49,591

Total debt	$	-	$	49,591
Less: current portion	-		(13,393)
Long-term debt	$	-	$	36,198

Revolving Facility

On November 29, 2022, the Company entered into a $120 million Credit Facility comprised of a $50 million Term Facility, maturing November 28, 2025, and a $70 million Revolving Facility, maturing November 27, 2026. On closing the Credit Facility, the Company drew $50 million from the Term Facility and used $40 million of available cash to repay its $92.9 million secured project financing facility.

The Company fully repaid the Term Facility during the first five months of 2023 and has not drawn from the Revolving Facility in 2023 or 2022. As of December 31, 2023, the Company was in compliance with all financial covenants under the $70 million Revolving Facility.

The Revolving Facility bears interest, and the Term Facility when outstanding bore interest, at a rate based initially on an adjusted Term secured overnight financing rate ("SOFR") as administered by the Federal Reserve Bank of New York, plus an applicable margin ranging from 2.50% to 3.75%. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.5625% to 0.8428% per annum. During 2023, $0.6 million of standby fees were recorded as interest and finance expense.


14. Reclamation Provision

Changes to the reclamation and closure provision related to the Las Chispas Operation were as follows:


	2023		2022
Balance, beginning of year	$	4,590	$	2,713
Accretion of reclamation provision	493		243
Revisions in estimates and obligations	772		1,634
Balance, end of year	$	5,855	$	4,590

The inflated and discounted provisions on the statement of financial position as at December 31, 2023, using an inflation rate of 4.7% (2022 – 4.6%) and a discount rate of 9.4% (2022 - 8.9%) being the risk-free rate based on the Bank of Mexico's 10 year bond rate, was $5.9 million (2022 - $4.6 million). Revisions made to the reclamation obligations in 2023 were primarily a result of increased site disturbance at the mine as well as revisions to the estimate based on periodic reviews of closure plans. The majority of reclamation expenditures are expected to be incurred in 2031 and 2032.

The accretion expense charged to 2023 earnings as finance expense was $0.5 million (2022 - $0.2 million). There were no reclamation expenditures paid during the current or comparative year.


SILVERCREST METALS INC.			24


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


15. Share Capital and Employee Compensation Plans

a)Stock options

For the year ended December 31, 2023, the total share-based compensation expense relating to stock options was $2.3 million (2022 - $1.0 million) and is presented as a component of general and administrative expense.

Stock options

During the year ended December 31, 2023, the Company granted 65,000 (2022 – 944,500) stock options. During the year ended December 31, 2023, the Company issued 1,282,750 (2022 – 1,507,500) common shares in connection with the exercise of stock options.

The following table summarizes changes in stock options for the years ended December 31:


	2023			2022
	Number of options	Weighted average exercised price CAD		Number of options	Weighted average exercised price CAD
Outstanding, beginning of year	5,560,450	$	7.87	6,216,700	$	6.37
Granted	65,000	7.13		944,500	8.86
Exercised(1)	(1,282,750)	3.34		(1,507,500)	2.13
Forfeited	(237,500)	9.80		(93,250)	10.66
Outstanding, end of year	4,105,200	$	9.16	5,560,450	$	7.87

The following table summarizes information about the Company's stock options outstanding at December 31, 2023:


	Options Outstanding				Options Exercisable
Range of Exercise Prices CAD	Number Outstanding as at December 31, 2023	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price CAD		Number Outstanding as at December 31, 2023	Weighted Average Exercise Price CAD
$4.54 - $8.21	988,750	1.0	$	7.82	907,083	$	7.88
$8.22 - $8.50	1,407,450	2.4	8.36		962,782	8.30
$8.51 - $10.80	765,000	2.9	9.86		509,994	9.86
$10.81 - $12.63	944,000	2.1	11.17		679,340	11.26
	4,105,200	2.1	$	9.16	3,059,199	$	9.09

The following assumptions were used in the Black-Scholes option pricing model in determining the fair value of options granted during the years ended December 31:


	2023		2022
Expected life (years)	4.00		3.5
Expected volatility	55.9	%	55.4	%
Expected dividend yield	—	%	—	%
Risk-free interest rate	4.0	%	3.1	%
Expected forfeiture rate	1.0	%	1.0	%

b)PSUs

PSUs are granted to select personnel where each PSU has a value equivalent to one SilverCrest common share. PSU grants outstanding will vest on the date that is three years from the date of grant subject to certain exceptions. Performance results at the end of the performance period relative to predetermined performance criteria and the application of the corresponding performance multiplier determine how many PSUs vest for each participant. The number of PSUs that will vest ranges from —% to 200% of the notional number of common shares, with settlement occurring either in cash or common shares, determined at the discretion of the Board.


SILVERCREST METALS INC.			25


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

The Board of Directors approved the issuance of 61,875 PSUs for 2023 with a share price of CAD $7.29 (2022 - 173,750 PSUs approved at a share price of CAD $7.69). The Company recorded a $0.5 million and $0.3 million expense in share-based compensation for PSUs for the years ended December 31, 2023 and 2022, respectively.

The following table summarizes changes in PSUs for the years ended December 31, 2023 and 2022:


	2023			2022
	Number outstanding	Fair value		Number outstanding	Fair value
Outstanding, beginning of year	173,750	$	764	—	$	-
Granted	61,875	451		173,750	1,336
Settled for cash	(82,500)	(535)		—	-
Change in value	-	25		—	(572)
Outstanding, end of year	153,125	$	705	173,750	$	764

c)RSUs

RSUs are granted to select personnel where each RSU has a value equivalent to one SilverCrest common share. The RSUs vest in 1/3 installments at the first, second and third anniversary date of the grant, with settlement occurring either in cash or common shares, determined at the discretion of the Board.

The Company recorded a $0.8 million and $0.1 million expense in general and administrative expense for RSUs for the years ended December 31, 2023 and 2022, respectively.

The following table summarizes changes in RSUs for the years ended December 31, 2023 and 2022:


	2023			2022
	Number outstanding	Fair value		Number outstanding	Fair value
Outstanding, beginning of year	249,498	$	254	83,500	$	11
Granted	-	-		195,500	1,677
Settled for cash	-	-		(27,002)	(175)
Forfeited	(14,061)	(20)		(2,500)	(6)
Change in value	-	821		-	(1,253)
Outstanding, end of year	235,437	$	1,055	249,498	$	254

d)DSUs

DSUs are granted to non-executive directors where each DSU has a value equivalent to one SilverCrest common share which vest on grant date. DSUs must be retained until the director leaves the Board, with settlement occurring either in cash or common shares, determined at the discretion of the Board.

The Company recorded a $0.7 million and $0.4 million expense in general and administrative expense for DSUs for the years ended December 31, 2023 and 2022, respectively.

The following table summarizes changes in DSUs for the years ended December 31, 2023 and 2022:


	2023			2022
	Number outstanding	Fair value		Number outstanding	Fair value
Outstanding, beginning of year	228,000	$	1,364	156,500	$	1,234
Granted	-	-		96,000	811
Settled for cash	-	-		(24,500)	(218)
Change in value	-	134		-	(463)
Outstanding, end of year	228,000	$	1,498	228,000	$	1,364

e)Authorized shares

The Company's authorized capital stock consists of an unlimited number of common shares and an unlimited number of preferred shares without nominal or par value.


SILVERCREST METALS INC.			26


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

f)Normal Course Issuer Bid (“NCIB”) ‐ Share repurchase program and share cancellation

During 2023, the Company received TSX acceptance of a NCIB permitting the Company to purchase up to 7,361,563 common shares of the Company over a 12-month period beginning on August 14, 2023. Under the NCIB, the Company may purchase up to a maximum of 80,376 common shares on the TSX during any trading day. All common shares, if any, purchased pursuant to the NCIB will be cancelled.

Share repurchases and cancellations are recorded by allocating any excess consideration over book value to deficit.

During 2023, the Company repurchased and cancelled 1.5 million common shares at an average price of CAD $6.44 per share for a total of $7.1 million. Upon the cancellation of shares, the Company allocated $4.0 million to capital stock and $3.1 million to deficit.


16. Revenue

During 2023, the Company had revenue of $245.1 million (2022 ‐ $43.5 million) from the sale of 58.2 thousand (2022 – 11.4 thousand) gold ounces and 5.6 million (2022 – 1.1 million) silver ounces to three (2022 – two) customers.


	2023		2022
Gold	$	113,263	$	19,726
Silver	131,867		23,784
	$	245,130	$	43,510

The Company has three customers that account for 51%, 44%, and 5% respectively, of total gold and silver revenue (2022 - 2 customers of 81%, and 19%, respectively). The loss of certain of these customers or curtailment of purchases by such customers could have a material adverse effect on the Company’s financial performance, financial position, and cash flows.


17. Production Costs

The Company did not have any production costs prior to the third quarter of 2022.

Production costs are comprised of the following:


	2023		2022
Materials and consumables	$	36,550	$	5,717
Salaries and benefits	10,726		3,618
Contractors	20,681		3,154
Refining and transportation	2,093		460
Other	2,387		435
Changes in inventories	1,671		374
Production costs	$	74,108	$	13,758


18. General and Administrative Expenses


	2023		2022
Corporate administration	$	11,566	$	7,880
Share-based compensation	4,190		1,866
General and administrative expenses	$	15,756	$	9,746


19. Interest and Finance Expense


	2023		2022
Interest expense	$	1,461	$	3,358
Reclamation accretion expense (Note 14)	493		243
Other financing costs(1)	759		2,988
	$	2,713	$	6,589

(1)Includes $2.9 million in fees from the early repayment of the Company's secured project financing facility during the year ended December 31, 2022.


SILVERCREST METALS INC.			27


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


20. Income Taxes

The income taxes recognized in income (loss) and comprehensive income (loss) are as follows:


	2023		2022
Current tax expense	$	29,631	$	5,682
Deferred tax expense	(23,105)		382
	$	6,526	$	6,064

The provision for income taxes reported differs from the amounts computed by applying statutory tax rates to the income (loss) before income taxes due to the following:


	2023			2022
Earnings for the year before income taxes	$	123,246		$	37,365
Statutory tax rate	27		%	27		%

Income taxes computed at statutory rates	33,276			10,089
Share based payments	441			940
Mexican inflationary adjustments	(4,893)			(5,116)
Permanent differences	334			7,480
Differing effective tax rate on loss in foreign jurisdiction	3,455			(567)
Impact of share issuance costs	(110)			—
Impact of foreign exchange and other	(12,856)			(6,395)
Recognition of previously unrecognized tax benefit	(25,589)			3,279
Effect of other taxes paid (mining and withholding)	8,725			—
Unrecognized deferred tax assets	4,836			(3,624)
Other	(1,093)			(22)
	$	6,526		$	6,064

The approximate tax effect of each item that gives rise to the Company's recognized deferred tax assets and liabilities as at December 31, 2023 and 2022 is as follows:


	2023		2022
Deferred income tax assets
Mineral properties, plant and equipment	$	15,031	$	46,129
Non-capital losses	2,411		7,412
Reclamation & closure provision	1,756		-
Special mining duties	3,623		-
Financing fees	-		1,937
Withholding tax	1,536		2,535
Other	1,429		-
	25,786		58,013
Deferred income tax liabilities
Mineral properties, plant, and equipment	-		(54,057)
Debt	(1,557)		(4,217)
Special mining duties	(1,506)		-
Other	-		(121)
	(3,063)		(58,395)
Net deferred tax asset (liability)	$	22,723	$	(382)
Deferred tax assets	$	22,723	$	-
Deferred tax liabilities	$	-	$	(382)


SILVERCREST METALS INC.			28


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

The approximate tax effect of each item that gives rise to the Company's unrecognized deferred tax assets and liabilities are as follows:


	2023		2022
Non-capital losses	$	4,140	$	15,084
Mineral properties, plant and equipment	35		50
Financing fees	1,047		-
Reclamation and closure provision	-		1,377
Withholding tax	2,264		437
Unrecognized deferred tax assets	(7,491)		(18,450)
Other	5		1,502
	$	-	$	-

The Company has the following deductible temporary differences for which no deferred tax assets have been recognized:


	Expiry Dates	December 31, 2023		December 31, 2022
Non-capital losses	2027-2042	$	15,295	$	50,280
Mineral properties, plant and equipment	No Expiry	114		168
Financing fees	2043-2047	3,875		-
Reclamation and closure provision	No Expiry	-		4,590
Withholding tax	No Expiry	6,182		437
Other	No Expiry	17		5,007
		$	25,483	$	60,482

At December 31, 2023, the Company had unrecognized non-capital loss carry forwards of approximately $23.9 million (2022 - $4.2 million unrecognized), which expire between 2040 and 2043, available to offset future taxable income in Canada. The Company also had unrecognized non-capital loss carry forwards of approximately $0.1 million (2022 - $71.0 million unrecognized), which expire between 2027 and 2033, available to offset future taxable income in Mexico.


21. Supplemental Cash Flow

The following table summarizes other operating activities adjustments for non-cash income statement items in operating activities:


Other operating activities	2023		2022
Adjustments for non-cash income statement items:
Reclamation accretion expense (Note 14)	$	493	$	-
Bullion gains (Note 9)	(640)		-
Derivative gains (Note 8)	(95)		-
	$	(242)	$	-

The following table summarizes changes in non-cash working capital items in operating activities:


Changes in non-cash operating working capital items:	2023		2022
Trade and other receivables	$	3,041	$	(8,132)
Inventories	(1,449)		(21,945)
Prepaid expenses	(2,527)		(2,180)
Accounts payable	4,544		3,613
Provisions	(855)		-
	$	2,754	$	(28,644)


SILVERCREST METALS INC.			29


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)

During the year ended December 31, 2023, the Company retrospectively applied an accounting policy change. This adjustment involved the inclusion of cash flows from both interest paid and received within operating activities in the consolidated statements of cash flows. This decision was made as the Company views these forms of financing and investment to be for the benefit of operations, in consideration of a full year of production. The following table provides a reconciliation of the impact of the accounting policy change on the 2022 amounts presented:


												Amount


Interest paid(1)												(7,568)
Interest received(2)												2,715

(1)Previously presented as loan interest payments included in financing activities.

(2)Previously presented in investing activities.


22. Segmented Information

The Company’s reportable operating segment, which has separate financial information available, is assessed regularly for performance by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker ("CODM").

During the year ended December 31, 2022, the Company had two operating segments: the Las Chispas Mine and El Picacho Property (“Picacho”), which is in the exploration phase. During the year ended December 31, 2023, there was a change in the reporting information reviewed by the CODM, leading the Company to conclude that it has a single operating segment: the Las Chispas Mine, which includes Picacho. Corporate includes the corporate team that provides administrative, technical, financial, and other support to the Company’s business units.

Segments and their performance measures are listed below:


For the year ended December 31, 2023
Segment	Revenue		Production costs and royalties		Depreciation		Mine operating earnings		Capital expenditures
Las Chispas(1)	$	245,130	$	75,476	$	21,348	$	148,306	$	51,118

Other	—		—		—		—		139
	$	245,130	$	75,476	$	21,348	$	148,306	$	51,257

(1)Located in Sonora, Mexico.


For the year ended December 31, 2022
Segment	Revenue		Production costs and royalties		Depreciation		Mine operating earnings		Capital expenditures
Las Chispas(1)	$	43,510	$	13,974	$	1,116	$	28,420	$	69,066

(1)Located in Sonora, Mexico.


At December 31, 2023
Segment	Assets		Liabilities		Net assets
Las Chispas	$	420,613	$	43,899	$	376,714
Corporate	38,039		13,926		24,113
Other	1,522		24		1,498
	$	460,174	$	57,849	$	402,325


At December 31, 2022
Segment	Assets		Liabilities		Net assets
Las Chispas	$	285,847	$	65,221	$	220,626
Corporate	69,502		13,134		56,368

	$	355,349	$	78,355	$	276,994


SILVERCREST METALS INC.			30


			Notes to the Consolidated Financial Statements
			As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of USD$ except number of shares, options and per share amounts, unless otherwise noted)


23. Contingencies

The following is a summary of the contingent matters and obligations relating to the Company as at December 31, 2023.

General

The Company is subject to various investigations, claims and legal and tax proceedings covering matters that arise in the ordinary course of business activities. These matters are inherently uncertain, and there is a potential for some of them to be resolved unfavorably for the Company. As of the date of the financial statements, specific conditions may be present that could lead to a financial loss for the Company.

It is management's opinion that none of these matters are anticipated to have a material impact on the Company's results of operations or financial condition.

Legal Proceedings

SilverCrest faces various claims and legal proceedings spanning a broad spectrum of issues arising in the routine course of our business activities. The Company is subject to claims initiated by current or former employees and proceedings in its commercial relationships. While SilverCrest would, when appropriate, defend against any such allegations, the possibility of incurring losses exists if our defense against these claims proves unsuccessful. In the opinion of management, these matters are not expected to have a material impact on the Company.


24. Related Party Transactions

The Company’s related parties include its subsidiaries, and key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation.

Compensation of key management personnel

Key management personnel compensation is summarized as follows:


	2023		2022
Short-term employee benefits(1)	$	3,257	$	2,891
Share-based compensation(2)	2,552		2,285
	$	5,809	$	5,176

(1)Includes annual salaries and short-term incentives.

(2)Includes annual stock option grants, DSUs, RSUs, and PSUs.


SILVERCREST METALS INC.			31

Management's Discussion and Analysis

FOR THE YEAR ENDED DECEMBER 31, 2023


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


Cautionary Note

Forward-Looking Information

This MD&A contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business and other matters that may occur in the future. In addition, these statements include, but are not limited to: the future price of commodities; the estimation of Mineral Resource and Mineral Reserve Estimates; the realization of Mineral Resource and Mineral Reserve Estimates; the timing and amount of estimated future production; costs of production; capital expenditures; costs and timing of the development of new deposits; timing of completion of exploration programs; technical reports and studies; the success of exploration and development activities and mining operations; future financings, the Company’s share price and on the timing and completion of exploration programs, the productivity and timing of mine operation activities; permitting timelines; currency fluctuations; requirements for additional capital; government regulation of exploration and production operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; completion of acquisitions and their potential impact on the Company and its operations; limitations on insurance coverage; maintenance of adequate internal control over financial reporting; and the development and advancement of the Company’s environmental, social, and corporate governance strategy.

Forward-looking statements are made based upon certain assumptions and other important factors that, while considered reasonable by the Company, are inherently subject to significant business economic, competitive, political and social uncertainties and contingencies. The Company has made assumptions based on many of these factors which include, without limitation: the Company’s expectations of future performance, including gold and silver production and planned work programs; present and future business strategies; the environment in which the Company will operate in the future, including the price of gold and silver; currency exchange rates; estimates of capital and operating costs; production estimates; Mineral Resource and Mineral Reserve Estimates, and metallurgical recoveries; and mining operational and development risks. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: fluctuating prices and availability of commodities; price inflation of goods and services; the timing and content of work programs; interest rate risks; global market conditions; fluctuations in the Company’s share prices; results of exploration activities; the interpretation of drilling results and other geological data; reliability of Mineral Resource and Reserve estimates; receipt, maintenance and security of permits and mineral property titles; enforceability of contractual interests in mineral properties; environmental and other regulatory risks; the effects of climate change; compliance with changing environmental regulations; dependence on local community relationships; risks of local violence; risks related to natural disasters, terrorism, civil unrest, public health concerns (including the impact on operations of health epidemics or outbreaks of communicable diseases such as the COVID-19 pandemic) and other geopolitical uncertainties; reliability of costs estimates; project cost overruns or unanticipated costs and expenses; precious metals price fluctuations; fluctuations in the foreign exchange rate (particularly Mexican peso ("MXN"), Canadian dollar ("CAD"), and United States dollar("USD")); risks associated with taxation in multiple jurisdictions; uncertainty in the Company’s ability to fund the exploration and development of its mineral properties or the completion of further exploration programs; uncertainty as to whether the Company’s exploration programs will result in the discovery, development or production of commercially viable ore bodies or yield reserves; operational, health and safety risks; infrastructure risks; risks associated with costs of reclamation; development plans and costs differing materially from the Company’s expectations; risks and uncertainties related to the timing of mine operation activities; risks related to mineral properties being subject to prior unregistered agreements, transfers, claims, and other defects in title; uncertainty in the ability to obtain financing if required; maintaining adequate internal control over financial reporting; dependence on key personnel; and general market and industry conditions. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements.

The Company’s forward-looking statements are based on beliefs, expectations, and opinions of management on the date the statements are made. While the Company has attempted to identify important factors that could cause actual actions, events, or results to differ from those described in forward-looking statements, there may be factors that cause actions, events, or results not to be as anticipated, estimated, or intended. The Company undertakes no obligation to update or


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

revise any forward-looking statements included in this MD&A if these beliefs, expectations and opinions or other circumstances should change, except as otherwise required by applicable law.

Cautionary Note to U.S. Investors

This MD&A includes Mineral Resource and Reserve classification terms that comply with reporting standards in Canada and the Mineral Resource and Reserve estimates are made in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to domestic United States reporting companies. Consequently, Mineral Resource and Reserve information included in this MD&A may not be comparable to similar information that would generally be disclosed by United States domestic reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with US standards.

Qualified Person

Technical information contained in this MD&A has been prepared by or under the supervision of N. Eric Fier, CPG, P.Eng., and Chief Executive Officer of the Company, who is a Qualified Person for the purpose of NI 43-101.


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


TABLE OF CONTENTS

1.	Introduction	5
2.	D escript ion of Business	5
3.	Highlight	6
4.	Outlook for 2024	6
5.	Environmental, Social, and Governance	7
6.	Operating Performance	9
7.	Financial Performance	11
8.	Liquidity and Capital Position	14
9.	Non-GAAP Financial Measures	16
10.	Review of Annual and Quarterly Results	18
11.	Related Party Transactions	18
12.	Risks and Uncertainties	18
13.	Material Accounting Policies, Standards and Judgements	21
14.	Disclosure and Internal Control Procedures	22
15.	Mineral Reserves and Resources	23


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


1. Introduction

This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand SilverCrest Metals Inc. (“SilverCrest”, “we”, “our” or the “Company”), our liquidity, capital resources, and operational and financial performance. This MD&A should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2023 (the “2023 Annual Financial Statements”), and the related notes contained therein. The Company's 2023 Annual Financial Statements were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). SilverCrest’s material accounting policies are set out in Note 3 of the 2023 Annual Financial Statements.

Continuous disclosure materials, including our most recent Form 40-F/Annual Information Form ("AIF"), this MD&A, audited consolidated financial statements, and Notice of Annual Meeting of Shareholders and Proxy Circular are available on our website at www.silvercrestmetals.com, on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov, as applicable (For avoidance of doubt, unless specifically noted, no items from these or other websites mentioned in this MD&A are incorporated by reference).

All amounts in this MD&A and the 2023 Annual Financial Statements are presented in United States dollars (“USD”) unless identified otherwise.

The following are other abbreviations used throughout this MD&A: Au (gold), Ag (silver), oz (ounces), koz (kilo-ounces), gpt (grams per tonne), kt (kilotonne), km (kilometres) and tpd (tonnes per day).

The silver equivalent (“AgEq”) ratio used in this MD&A is based on the gold to silver ratio of 79.51:1 from the technical report titled “Las Chispas Operation Technical Report” dated September 5, 2023 with an effective date of July 19, 2023 (the “2023 Technical Report”).

The effective date of this MD&A is March 11, 2024.

Non-GAAP Financial Measures

This MD&A refers to various non-GAAP measures which are used by the Company to manage and evaluate operating performance at the Company's Las Chispas mine and are widely reported in the mining industry as benchmarks for performance, do not have standardized meanings under IFRS Accounting Standards, and the methodology by which these measures are calculated may differ from similar measures reported by other companies. To facilitate a better understanding of these non-GAAP measures as calculated by the Company, additional information has been provided in this MD&A. Please refer to the section of this MD&A entitled “Non-GAAP Financial Measures” for a detailed description, and a reconciliation to the most comparable GAAP measure, of the following measures used in this MD&A:

•Average realized gold and silver price

•Free cash flow

•Treasury assets

•Cash costs

•All-in sustaining costs ("AISC")

•Net cash


2. Description of Business

SilverCrest is a Canadian-based precious metals producer headquartered in Vancouver, BC. The Company's principal focus is operating its Las Chispas silver and gold operation ("Las Chispas" or the "Las Chispas Operation" or the "Las Chispas Mine"). SilverCrest has an ongoing initiative to increase its asset base by expanding current Mineral Resource and Reserve Estimates, acquiring, discovering and developing high value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas. The Company is listed on the Toronto Stock Exchange (Symbol: SIL) and on the NYSE-American (Symbol: SILV).


SILVERCREST METALS INC.			5


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


3. Highlights

The following highlights refer to free cash flow, cash costs, AISC, and treasury assets which are described in more detail in section "9. Non-GAAP Financial Measures" of this MD&A.

Q4, 2023

•Recovered 14,100 oz of Au and 1.34 million oz of Ag, or 2.47 million oz of AgEq.

•Sold 16,100 oz of Au and 1.28 million oz of Ag, or 2.56 million oz of AgEq.

•Cash costs of $7.45 per oz AgEq sold, and Corporate AISC of $14.36 per oz AgEq sold, which was within the H2, 2023 guidance range of $13.75 to $15.50 per oz AgEq sold, but higher than Q3, 2023 primarily due to an increase in capital spend and payments to our outgoing mining contractor.

•Average realized price of $1,979/oz Au and $23.09/oz Ag.

•Revenue of $61.3 million and cost of sales of $24.4 million, resulting in mine operating earnings of $36.9 million, which represents a 60% operating margin.

•Net earnings of $35.9 million or basic earnings of $0.25 per share.

•Free cash flow of $24.1 million or $0.16 per share.

•Ended the quarter with treasury assets totaling $105.2 million ($86.0 million cash and $19.2 million in bullion), a $23.4 million or 29% increase from the prior quarter.

Year ended December 31, 2023

•Recovered 59,700 oz of Au and 5.65 million oz of Ag, or 10.40 million oz of AgEq.

•Sold 58,200 oz of Au and 5.62 million oz of Ag, or 10.25 million oz of AgEq, exceeding 2023 sales guidance of 9.8 to 10.2 million oz of AgEq.

•Cash costs of $7.73 per oz AgEq sold was within the guidance range of $7.50 to $8.50 per oz AgEq sold.

•AISC of $12.58 per oz AgEq sold beat the low end of the 2023 guidance range of $12.75 to $13.75 per oz AgEq sold.

•Average realized price of $1,946/oz Au and $23.48/oz Ag.

•Revenue of $245.1 million and cost of sales of $96.8 million, resulting in mine operating income of $148.3 million, which represents a 61% operating margin.

•Net earnings of $116.7 million or basic earnings of $0.79 per share.

•Free cash flow of $121.1 million or $0.82 per share.

•Financial position remained strong with no debt and treasury assets totaling $105.2 million ($86.0 million cash and $19.2 million in bullion), a $54.4 million or 107% increase from the prior year.

•Fully repaid the $50.0 million Term Facility.

•Repurchased $7.1 million of the Company's shares under SilverCrest's Normal Course Issuer Bid ("NCIB"), representing 20% of the allowable 7.4 million common share purchase limit.


4. Outlook for 2024

Las Chispas Operation Outlook for 2024

The Las Chispas underground operation will continue its ramp-up through 2024 with mining rates expected to remain at or around Q4, 2023 levels in H1, 2024, as the new mining contractor mobilizes. Mining rates will increase in H2, 2024 with a targeted exit rate of 1,050 tonnes per day (‘tpd”). The mine plan was created with a measured ramp-up, which when combined with balanced usage of surface stockpiles, reduces execution risk. The new mining contractor, a subsidiary of Dumas Contracting Ltd. (“Dumas”), arrived at site in early February 2024 to begin mobilization, which is expected to continue


SILVERCREST METALS INC.			6


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

through Q3, 2024. Guidance for 2024 incorporates assumptions related to the transition of contractors and ramp-up of Dumas, including some one time costs.

In 2024, the processing plant will operate at an average of 1,200 tpd, except in Q1, 2024, due to planned maintenance downtime in February 2024. This work is now complete and is not expected to impact production in the quarter due to the flexibility afforded by the stockpile for ore blending. Silver equivalent sales are expected to be relatively consistent quarterly throughout 2024.

2024 Sales and Cost Guidance Highlights

SilverCrest has set its full year 2024 guidance as follows:


Guidance Metric	Unit	2024
AgEq Ounces Sold	millions	9.8 to 10.2
Cash Costs(1)	$/oz AgEq sold	9.50 to 10.00
AISC(1)	$/oz AgEq sold	15.00 to 15.90
Sustaining Capital(1)	$ millions	40.0 to 44.0
Exploration	$ millions	12.0 to 14.0

Notes:

1)Cash Costs, AISC, and sustaining capital are non-GAAP measures. Please refer to section "9. Non-GAAP Financial Measures" of this MD&A for further information on this measure.

2)General assumptions:

a)Metal prices estimated at $1,850/oz Au and $22.80/oz Ag.

b)Annual average exchange rate from all costs based on Mexican peso to US dollar of 17:1.

•Silver equivalent ounces sold of 9.8 to 10.2 million anticipated for 2024 compares to annual average of 10.0 million AgEq ounces produced in the 2023 Technical Report.

•Cash Costs of $9.50 to $10.00/oz AgEq sold compares to 2024 cash costs forecast in the 2023 Technical Report of $9.80/oz AgEq sold.

•Sustaining Capital of $40.0 to $44.0 million will be largely related to underground development and underground infrastructure.

•Estimated 2024 Corporate AISC of $15.00 to $15.90/oz AgEq sold is inline with the 2024 AISC estimate based on the 2023 Technical Report of $15.08/oz AgEq (inclusive of 2024 mine level AISC of $13.48/oz AgEq sold and an estimate of $1.60/oz AgEq sold of corporate level costs). AISC in H1, 2024 is expected to be higher than Q4, 2023 as a result of Dumas mobilization and demobilization of the outgoing contractor, and is expected to reduce in H2, 2024.

Cash Flow Items

•In Q1, 2024 SilverCrest expects to make payments totalling approximately $30.0 million for 2023 taxes and duties.

•2024 taxes are estimated to total $28.0 to $33.0 million and will be paid in quarterly installments. Special mining duties are paid in the first quarter following the end of each fiscal year in accordance with the mandated annual schedule.

•In 2024, cash flows are also expected to be impacted by mobilization and demobilization costs, including a $7.5 million advance that was made in Q1, 2024 to support equipment purchases as part of the mobilization of Dumas. The equipment advance will result in estimated savings of $1.5 million over the life of the five year contract. This advance to Dumas will be credited towards mining services for SilverCrest over 24 months starting in Q3, 2024. A total of $4.5 million in mobilization charges will be paid over the mobilization period with the expense recognized over the life of the five year contract and reflected in AISC during this time.

Exploration

An exploration budget within a range of $12.0 to $14.0 million, the majority of which will be capitalized as growth capital, has been approved for 2024 with a focus on converting inferred resources to indicated for reserve consideration in proximity to existing or planned infrastructure, returning to early stage exploration at Las Chispas, and defining new regional targets that could benefit mine life extensions.


5. Environmental, Social, and Governance ("ESG")

SilverCrest remains committed to responsible and sustainable business practices, aiming to exceed statutory benchmarks throughout its exploration, development, operational, and decommissioning phases. This commitment is rooted in a deep understanding of the extensive effects mining operations can exert on local communities and ecosystems, coupled with an


SILVERCREST METALS INC.			7


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

awareness of the evolving risk environment. Such awareness guides the Company to continually adjust its strategies to safeguard not only its workforce, contractors, and suppliers but also the broader community, environmental integrity, and its physical and financial assets.

In 2023, SilverCrest published its inaugural full ESG report following the success of the Task Force for Climate-Related Disclosures ("TCFD") and Water Stewardship Report disclosures in 2022, collectively available on our website at www.silvercrestmetals.com. This further formalizes the Company’s commitment to diligent management of ESG issues within its own operations and the local community. The Company’s ESG practices and community engagement earned recognition in Mexico with the 2023 Empresas Socialmente Responsables (Socially Responsible Companies) distinction from the Mexican Centre for Philanthropy (CEMEFI). In addition, the Company has received recognition from the Confederation of Chambers of Commerce of Mexico (CONCAMIN) in the areas of ESG compliance and Outstanding Social Responsibility and Sustainability Practices.

SilverCrest plans to publish its second ESG report in Q2, 2024.

Environmental

In 2023, the Company had no significant environmental incidents at its property.

SilverCrest invested in its ESG data management systems in late 2022 and early 2023. This initiative has enabled SilverCrest to accumulate two years of greenhouse gas (GHG) emissions data amongst other important ESG data such as water consumption. SilverCrest is committed to efficient and sustainable production practices and will provide additional details regarding its GHG emissions and water consumption in its 2023 ESG Report.

Social

SilverCrest has consistently prioritized the health and safety of its employees and contractors, striving to maintain a safe and inclusive work environment. In 2023, the Company launched a new safety and leadership initiative, "Prometimos Volver" (Promise to Return Home), targeting all personnel at the Las Chispas Mine. Furthermore, SilverCrest distinguished itself as one of Mexico's pioneering mining companies by adopting innovative self-rescue oxygen generator technology at Las Chispas, enhancing the safety of employees underground in emergencies, such as fires. These health and safety measures underscore SilverCrest's dedication to minimizing occupational hazards. Looking ahead, the Company is working towards achieving ISO 45001 certification in 2024 to further enhance its safety and emergency preparedness.

With the knowledge that water scarcity is the greatest physical climate risk facing the region and communities, SilverCrest has continued to invest in water infrastructure projects to improve water resilience for local communities. In 2023, SilverCrest allocated $0.4 million from its committed $1.5 million towards water stewardship initiatives within the community. This investment facilitated approximately 900 metres of sewer system repairs, more than 500 metres of aqueduct enhancements in the Arizpe region of Sonora, and the establishment of electrified pumps for wells. Furthermore, SilverCrest is actively collaborating with Mexican government agencies to acquire a water concession which will enable the town of Arizpe to apply for government water infrastructure funding. The Company is poised to continue its commitment to enhancing water infrastructure in 2024, with plans to allocate around $0.3 million for the repair of agricultural aqueducts and sewage systems.

The benefits of SilverCrest’s water infrastructure projects became apparent in 2023. For instance, the repair of the river water gallery intake in Arizpe in 2022 enabled consistent water access for 231 hectares, benefiting 58 landowners and allowing for two planting seasons. An estimated 14% of farmers utilized this second planting season in the first year. SilverCrest is planning an educational presentation to further encourage local farmers to leverage the opportunity for an additional planting season, aiming to enhance agricultural productivity and economic outcomes in the community.

Governance

As part of the Company's Governance Strategy, the Board delegates the oversight of environmental, social and human capital related issues, to the Safety, Environmental and Social Sustainability ("SESS") Committee, which was formed in May 2019. The SESS Committee is tasked with aiding the Board in overseeing the company's sustainability, social responsibility, environmental, and health & safety efforts through regular monitoring and guidance. It operates based on a formal charter that outlines its responsibilities, available on the Company's website.


SILVERCREST METALS INC.			8


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


6. Operating Performance

The following operating performance refers to free cash flow, cash costs, AISC, treasury assets and net cash which are described in more detail in section "9. Non-GAAP Financial Measures" of this MD&A.


OPERATIONAL	Unit	Q4, 2023			Q4, 2022			2023			2022
Ore mined	tonnes	78,600			64,700			300,900			201,000
Ore milled(1)	tonnes	104,500			104,400			431,400			187,600
Average daily mill throughput	tpd	1,136			1,135			1,182			877
Underground development	km	3.6			2.3			13.2			8.1

Gold
Average grade	gpt	4.28			3.67			4.39			3.05
Recovery	%	98.3		%	96.9		%	98.1		%	96.5		%
Recovered	oz	14,100			11,940			59,700			17,770
Sold	oz	16,100			11,400			58,200			11,400

Silver
Average grade	gpt	410			382			423			312
Recovery	%	97.7		%	93.3		%	96.5		%	92.5		%
Recovered	million oz	1.34			1.20			5.65			1.74
Sold	million oz	1.28			0.98			5.62			1.12

Silver equivalent(3)
Average grade	gpt	750			674			771			555
Recovery	%	98.0		%	94.7		%	97.2		%	94.2		%
Recovered	million oz	2.47			2.15			10.40			3.16
Sold	million oz	2.56			1.89			10.25			2.03

FINANCIAL	Unit	Q4, 2023			Q4, 2022			2023			2022
Revenue	$ millions	$	61.3		$	40.8		$	245.1		$	43.5
Cost of sales	$ millions	$	(24.4)		$	(14.3)		$	(96.8)		$	(15.1)
Mine operating income	$ millions	$	36.9		$	26.5		$	148.3		$	28.4
Earnings for the period	$ millions	$	35.9		$	5.2		$	116.7		$	31.3
Earnings per share (basic)	$/share	$	0.25		$	0.03		$	0.79		$	0.21
Free cash flow	$ millions	$	24.1		N/A(2)			$	121.1		N/A(2)
Cash costs	$/oz AgEq	$	7.45		N/A(2)			$	7.73		N/A(2)
AISC	$/oz AgEq	$	14.36		N/A(2)			$	12.58		N/A(2)
	Units							As at Dec 31, 2023			As at Dec 31, 2022
Cash and cash equivalents	$ millions							$	86.0		$	50.8
Bullion	$ millions							$	19.2		$	—
Treasury assets	$ millions							$	105.2		$	50.8
Credit Facility Debt	$ millions							$	—		$	49.6
Net cash	$ millions							$	86.0		$	1.2

(1)Ore milled includes material from stockpiles and ore mined.

(2)This information was not available for 2022.

(3)Q4, 2022 and 2022 AgEq figures were originally presented using a Ag:Au ratio of 86.9:1 but have been recast for consistency with the ratio of 79.51:1 being applied to current year figures based on the 2023 Technical Report.


SILVERCREST METALS INC.			9


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

Underground

Mining rates in Q4, 2023 averaged 855 tpd, a 6% decrease from Q3, 2023, but in line with the ramp-up estimate of 800 to 900 tpd. Rates decreased over the previous quarter as a result of a focus on dilution management. During 2023, mining rates averaged 824 tpd.

In Q4, 2023, the Company completed 3.6 km of horizontal and vertical underground development. In 2023, the Company completed an additional 13.2 km of horizontal and vertical underground development, compared to 8.0 km in 2022. During 2023, mining rates averaged 824 tpd, in line with the ramp-up estimate of 800 to 900 tpd outlined in the 2023 Technical Report.

Processing Plant

Average daily mill throughput was 1,136 tpd in Q4, 2023 and 1,182 tpd in 2023. Q4, 2023 throughput declined slightly from Q3, 2023 throughput of 1,245 tpd as the processing plant experienced some unplanned downtime.

Average processed gold and silver grades of 4.28 gpt Au and 410 gpt Ag, or 750 gpt AgEq, in Q4, 2023 were inline with Q3, 2023 (2% and 1% declines respectively). In 2023, gold and silver processed grades averaged 4.39 gpt Au and 423 gpt Ag, or 771 gpt AgEq.

Costs

During the quarter, cash costs averaged $7.45 per oz AgEq sold. This is higher than Q3, 2023 cash costs of $6.53 per oz AgEq sold, but within H2, 2023 cash cost guidance range of $7.00 to $8.50 per oz AgEq sold. Cash costs increased due to higher payments to our outgoing mining contractor. In 2023 cash costs averaged $7.73 per oz AgEq sold which was within the 2023 cash cost guidance range of $7.50 to $8.50 per oz AgEq sold.

AISC averaged $14.36 per oz AgEq sold in Q4, 2023, higher than $12.23 per oz AgEq sold in Q3, 2023 as expected, but within the H2, 2023 guidance range of $13.75 to $15.50 per oz AgEq sold. AISC increased due to higher capital spend and payments to our outgoing mining contractor. AISC in 2023 was $12.58 per oz AgEq sold which beat the low end of the 2023 guidance range of $12.75 to $13.75 per oz AgEq sold.

Sustaining Capital Expenditures

Sustaining capital expenditures totaled $12.0 million in Q4, 2023 and $37.1 million for 2023, which is consistent with the $39.1 million estimated in the 2023 Technical Report. Sustaining capital in 2023 was largely related to underground development and underground infrastructure.

Las Chispas Exploration

During 2023, the Company completed exploration work at Las Chispas, which is capitalized as growth capital.

During Q4, 2023, 17,947 metres of drilling was completed at Las Chispas, with 42% of the metres focused on infill drilling of Inferred Resources (see 2023 Technical Report) for conversion to Indicated Resources and possible conversion to Reserves. The balance of the drilling was focused on new vein targets. In Q4, 2023, the Company spent $5.0 million on exploration at Las Chispas. This drilling program will continue in 2024 with a budget of up to $14 million targeting conversion in H1, 2024 and targeting inferred growth in H2, 2024.

During 2023, 50,233 metres of drilling was completed at Las Chispas, and $11.4 million was spent on exploration at Las Chispas.


SILVERCREST METALS INC.			10


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


7. Financial Performance

Net earnings

During the three months and year ended December 31, 2023, net earnings were $35.9 million and $116.7 million, respectively, compared to net earnings of $5.2 million and $31.3 million for the three months and year ended December 31, 2022, respectively.

The following table summarizes the Q4 2023 and annual 2023 differences in net earnings:


	Three months		Year		Note
Net earnings, period ended December 31, 2022	$	5,231	$	31,301
Increased revenue	20,529		201,620		1
Increased production costs and royalties	(4,823)		(61,502)
Increased depreciation	(5,255)		(20,232)
Increased cost of sales	$	(10,078)	$	(81,734)	2
Increased mine operating earnings	$	10,451	$	119,886
Increased general and administrative expenses	(2,169)		(6,010)		4
Decreased exploration and project expenses	676		4,718		6
Decreased foreign exchange losses (decreased gains)	5,123		(35,160)		3


Increased interest income	562		1,224
Decreased interest and finance expense	6,063		3,876		7
(Decreased) increased other expense	507		(2,653)
Decreased (increased) income tax expense	9,473		(462)		5
Net earnings, period ended December 31, 2023	$	35,917	$	116,720

1)Revenue

The Company started commissioning its Las Chispas plant during Q2, 2022 and had its first metal sale during Q3, 2022. The Company achieved commercial production, when the mine was operating as intended by management, at Las Chispas effective November 1, 2022 and continued ramp-up and sales during Q4, 2022.

Q4 2023 vs Q4 2022

During Q4, 2023, the Company sold a total of 16,100 oz Au and 1.28 million oz Ag at average realized prices of $1,979/oz Au and $23.09/oz Ag, generating revenue of $61.3 million. During Q4 2022, the Company sold a total of 11,400 oz Au and 1.0 million oz Ag at average realized prices of $1,730/oz Au and $21.51/oz Ag, generating revenue of $40.8 million. The increased quantities sold resulted from the Company having three months of commercial production in Q4 2023 compared to two months in Q4 2022.

The following table reflects quarterly realized metal prices and quantities sold:


	Realized Metal Prices ($ per oz)				Quantities of Metal Sold (oz)
	Three months ended December 31,				Three months ended December 31,
	2023		2022		2023	2022
Gold	$	1,979	$	1,730	16,100	11,400
Silver	$	23.09	$	21.51	1,275,300	979,400

2023 vs 2022

During 2023, the Company sold a total of 58,200 oz Au and 5.62 million oz Ag at average realized prices of $1,946/oz Au and $23.48/oz Ag, generating revenue of $245.1 million. During 2022, the Company sold a total of 11,400 oz Au and 1.12 million oz Ag at average realized prices of $1,730/oz Au and $21.24/oz Ag, generating revenue of $43.5 million.


SILVERCREST METALS INC.			11


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

The following table reflects annual realized metal prices and quantities sold:


	Realized Metal Prices ($ per oz)				Quantities of Metal Sold (oz)
	Year ended December 31,				Year ended December 31,
	2023		2022		2023	2022
Gold	$	1,946	$	1,730	58,200	11,400
Silver	$	23.48	$	21.24	5,616,300	1,119,700

2)Cost of sales

Depreciation commenced after the Company achieved commercial production effective November 1, 2022.

Q4 2023 vs Q4 2022

Cost of sales of $24.4 million in Q4 2023 was $10.1 million higher than $14.3 million in Q4 2022 because the Company sold more metal quantities, with associated cost of sales, as a result of having three months of commercial production in Q4 2023 compared to two months in Q4 2022.

2023 vs 2022

Cost of sales of $96.8 million in 2023 was $81.7 million higher than $15.1 million in 2022 as a result of 2023 being the Company's first full year of commercial production compared to two months in 2022.

3)Foreign exchange losses and gains

The Company determined the functional currency of its parent entity to be the Canadian Dollar ("CAD") until July 1, 2023, at which point the Company's functional currency changed to be USD after determining that the USD better represents the primary economic environment in which the parent entity operates.

The Company primarily generated significant foreign exchange gains and losses in 2022 and the first half of 2023 as a result of converting foreign currency balances in the parent entity to the functional currency at the time, CAD, and then back to the presentation currency, USD using two different methods of translation required under IFRS Accounting Standards: 1) conversion to the functional currency required foreign exchanges differences to be recorded in the income statement, and, 2) conversion back to the presentation currency required foreign exchange differences to be recorded to the balance sheet, in the currency translation reserve.

Q4 2023 vs Q4 2022

The Company recorded foreign exchange gains of $0.6 million in Q4 2023 compared with $4.5 million of losses in Q4 2022, a $5.1 million reduction in losses which was largely the result of depreciating USD relative to CAD which generated foreign exchange losses on USD cash and cash equivalent balances in Q4 2022 with no amounts recorded the Q4 2023 as a result of changing the Company's functional currency at July 1, 2023 as described above.

2023 vs 2022

The Company recorded foreign exchange losses of $7.2 million in 2023 compared with $27.9 million of gains in 2022, a $35.2 million reduction in gains which was largely the result of appreciating USD relative to CAD which generated foreign exchange gains on USD cash and cash equivalent balances in 2022 with losses recorded the 2023 as a result depreciating USD relative to CAD which resulted in foreign exchange losses on USD cash and cash equivalent balances until the Company changed its functional currency at July 1, 2023 as described above.

4)General and administrative ("G&A") expenses

Q4 2023 vs Q4 2022

G&A expense of $6.5 million in Q4 2023 was $2.2 million higher than $4.4 million recorded in Q4 2022 as a result of higher employee costs, including increased share-based compensation allocation, and professional fees due to inflationary pressures, increased number of engagements and activities of a producing company. In addition, Q4 2023 had three months of commercial production with certain employee compensation expensed compared to two months in Q4 2022 which resulted in a month of labour costs being capitalized during mine construction as a result of the Company ramping up operations at Las Chispas.

2023 vs 2022

G&A expense of $15.8 million in 2023 was $6.0 million higher than the $9.7 million recorded in 2022 as a result of having a year of commercial production with certain employee compensation expensed with production in 2023


SILVERCREST METALS INC.			12


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

compared to capitalized with mine construction for 10 months in 2022, as the Company only reached commercial production in November 2022.

5)Income tax expense

Q4 2023 vs Q4 2022

Income tax expense of $3.4 million in Q4 2023 was $9.5 million higher than the $6.1 million recorded in Q4 2022 as a result of strong operational performance and increased metal sales. The Company also utilized all of its loss carryforwards during the year which resulted in comparatively higher income tax expense in Q4 2023. Q4 2022 income tax expense was largely due to withholding tax on interest charged on intercompany loan balances.

2023 vs 2022

Income tax expense of $6.5 million in 2023 was $0.5 million higher than the $6.1 million recorded in 2022 as a result of strong operational performance and increased metal sales. The Company also utilized all of its loss carryforwards during the year which resulted in comparatively higher Income tax expense in 2023. Income tax expense for 2022 was largely due to withholding tax on interest charged on intercompany loan balances.

6)Exploration and project expenses

Q4 2023 vs Q4 2022

Exploration and project expenses in Q4 2023 outside of Las Chispas were largely consistent with those in Q4 2022.

2023 vs 2022

In 2023 exploration and project expenses outside of Las Chispas totaled $0.7 million, marking a decrease of $4.7 million from the $5.4 million recorded in 2022. This reduction can be attributed to the Company's focus on the Las Chispas Operation during 2023, in contrast to 2022, when a larger exploration program was undertaken at the Company's El Picacho Property.

7)Interest and finance expense

In 2022, the Company maintained a $90 million secured project financing facility ("Project Facility"), which was subsequently replaced with a $50 million Term Facility for the last month of the year. Interest charged from the Project Facility was initially capitalized as borrowing costs under mineral properties, plant, and equipment until the Company achieved commercial production on November 1, 2022. It was subsequently recorded as interest and finance expense.

Q4 2023 vs Q4 2022

Interest and finance expense in Q4 2023 amounted to $0.3 million, reflecting a decrease of $6.1 million from the the $6.4 million expense recorded in Q4 2022. This reduction can be primarily attributed to the absence of any outstanding debt during the current quarter. In contrast, in Q4 2022, the Company maintained a $90 million Project Facility, which was subsequently replaced with a $50 million Term Facility outstanding for the last month. The early repayment of the Project Facility resulted in early repayment fees and closing costs, which were also recorded as interest and finance expenses in Q4 2022.

2023 vs 2022

Interest and finance expense of $2.7 million in 2023, was $3.9 million lower than the $6.6 million expense recorded in 2022. This decrease resulted from lower interest in 2023 because the Company repaid the $50 million Term Facility during the first 5 months of 2023 which contrasts with higher interest in 2022 from the $90 million Project Facility and $50 million Term Facility which were outstanding for 11 months and 1 month, respectively. The interest on the Project Facility was capitalized as borrowing costs under mineral properties, plant, and equipment for the first 10 months of the year. The early repayment fees and closing costs of the Project Facility also increased interest and finance expenses in 2022, as noted above.

Statement of Cash Flows

1)Operating activities

Q4 2023 vs Q4 2022

Cash flows used in operations in Q4 2023 totaled $36.1 million, a $16.7 million quarter-over-quarter increase relative to the $19.4 million generated in Q4 2022. The increase was primarily driven by a $20.5 million increase in revenue


SILVERCREST METALS INC.			13


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

described above, partially offset by a $4.8 million increase in production costs and $2.3 million in cash used for working capital, largely from inventory buildups. These changes resulted from Las Chispas operating for the entirety of the quarter and benefiting from improved average realized prices on metals sold during Q4 2023 compared to just two months of commercial production in Q4 2022

2023 vs 2022

Cash flows used in operations in 2023 totaled $158.3 million, a $168.2 million increase relative to the $9.9 million used in 2022. The increase is primarily driven by a $201.6 million increase in revenue described above, and $31.4 million in reduced cash used by working capital due from inventory buildups in 2022, partially offset by a $61.5 million increase in production costs. These changes resulted from Las Chispas operating for the entire 2023 year and benefiting from improved average realized prices on metals sold during 2023 compared to just two months of commercial production in 2022

2)Investing activities

Q4 2023 vs Q4 2022

Investing activities utilized $23.7 million of cash in Q4 2023, comprised mostly of $17.3 million spent on mineral property, plant and equipment additions, primarily for mine and project development and equipment purchases, and $6.7 million in bullion purchases. In Q4 2022, investing activities utilized $16.4 million, reflecting spending on mineral property, plant and equipment from the completion of construction and commissioning of the Las Chispas processing plant, purchase of equipment and mine development costs.

2023 vs 2022

Investing activities utilized $69.7 million of cash in 2023, comprised mostly of $51.3 million spent on mineral property, plant and equipment additions, primarily for mine and project development and equipment purchases, and $18.7 million in bullion purchases. In 2022, investing activities utilized $68.5 million, reflecting spending on mineral property, plant and equipment from the construction and commissioning of the Las Chispas processing plant, purchase of equipment and mine development costs.

3)Financing activities

Q4 2023 vs Q4 2022

Financing activities in Q4 2023 generated $2.8 million, largely from the exercise of stock options. In Q4 2022, $42.2 million was used in financing activities, which was primarily due to $43.3 million used for debt repayments in the quarter, offset partially by $1.1 million generated from the exercise of stock options.

2023 vs 2022

Financing activities in 2023 used $54.1 million, largely from the $50.0 million repayment of the Term Facility, $7.1 million used for common share repurchases, offset partially by $3.1 million in cash generated from the exercise of stock options. In 2022, $41.0 million was used in financing activities, which was primarily due to $43.3 million used for net debt repayments in the quarter, offset partially by $2.5 million generated from the exercise of stock options.


8. Liquidity and Capital Position


Liquidity and Capital Measures	Dec 31, 2023		Dec 31, 2022		2022 Change
Cash and cash equivalents	$	85,964	$	50,761	$	35,203
Bullion	$	19,191	$	-	$	19,191
Treasury assets(1)	$	105,155	$	50,761	$	54,394
Working capital(2)	$	126,760	$	74,893	$	51,867
Debt	$	—	$	49,591	$	(49,591)
Net cash(3)	$	85,964	$	1,170	$	84,794

(1)Treasury assets, which include cash and cash equivalents and bullion, is a non-GAAP measure. Please refer to "9. Non-GAAP Financial Measures" section of the MD&A.

(2)Working capital, calculated as current assets less current liabilities, is a non-GAAP measure. Please refer to "9. Non-GAAP Financial Measures" section of the MD&A

(3)Net cash, which includes cash and cash equivalents less debt, is a non-GAAP measure. Please refer to "9. Non-GAAP Financial Measures" section of the MD&A.


SILVERCREST METALS INC.			14


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

Liquidity and Capital Resources

Management believes the Company has sufficient financial resources, including access to the undrawn $70 million revolving facility (the "Revolving Facility"), to cover its business needs well into the future, including capital expenditures, and meeting working capital requirements.

The Company's financial strength is reinforced by the operational success at Las Chispas, where revenue generation commenced in Q3 2022. Subsequently, in Q4 2022, the Company officially declared commercial production. To ensure alignment with its capital needs, the Company develops annual budgets. These budgets are regularly reviewed and incorporate estimated production, exploration efforts, financing availability, and industry conditions.

The impact of inflation on the Company’s financial position, operating performance, or cash flows over the next 12 months cannot be determined with any degree of certainty due to a number of factors outside of the Company’s control. The Company attempts to mitigate inflationary risks through various strategies including, but not limited to, continuous balance sheet management in which the Company invests in assets in an attempt to generate a rate of return. Buoyed by strong operational results, the Company purchased bullion in 2023, comprised of gold and silver bars, in an attempt to generate a return which may offset the risk that inflation will erode the purchasing power of the Company's cash and cash equivalent balances. These assets are intended to diversify our treasury assets in alignment with the Company's liquidity management policy.

During the year ended December 31, 2023, the Company's working capital increased by $51.9 million, and treasury assets increased by $54.4 million, largely driven by robust operational performance at Las Chispas which facilitated the acquisition of bullion and expansion of cash balances. The working capital increase included buildups of bullion and cash and $13.4 million in repayments of the current portion of the Company's term credit facility, offset partially by a $27.9 million increase in tax liabilities for income taxes to be paid in Q1, 2024.

The Company fully repaid its term credit facility during the first five months of 2023 and has not drawn from the $70.0 million Revolving Facility during 2023 or 2022. As of December 31, 2023, the Company was in compliance with all financial covenants under this facility. The Revolving Facility matures on November 27, 2026 and bears interest at a rate based initially on an adjusted Term secured overnight financing rate ("SOFR") as administered by the Federal Reserve Bank of New York, plus an applicable margin ranging from 2.50% to 3.75%. The undrawn portion of the Revolving Facility is subject to a standby fee ranging from 0.56% to 0.84% per annum.

Commitments and contractual obligations

In the normal course of business, the Company enters into contracts that give rise to commitments which are described in Note 8(d)(ii) of the 2023 Annual Financial Statements. The following table summarizes the remaining contractual maturities of the Company's financial liabilities and operating and capital commitments on an undiscounted basis:


	Payments due by period 2023
	Less than 1 year		Between 1 - 3 years		Between 4 - 5 years		After 5 years		Total
Accounts payable and accrued liabilities	$	17,924	$	-	$	-	$	-	$	17,924
Tax liabilities	33,614		-		-		-		33,614
Lease liabilities	69		134		80		84		367
Reclamation and closure provision(1)	-		-		-		8,696		8,696
	$	51,607	$	134	$	80	$	8,780	$	60,601

(1)Represents undiscounted uninflated future payments for the expected cost of mine reclamation and closure.

Outstanding Share and Option Amounts

As at December 31, 2023, the Company had approximately 4.1 million stock options outstanding (each exercisable for one common share of the Company), with exercise prices in the range of CAD $4.54 to CAD $12.63 and a weighted average life of 2.1 years. Approximately 3.1 million of the stock options were vested and exercisable at December 31, 2023, with an average weighted exercise price of CAD $9.10 per share.


SILVERCREST METALS INC.			15


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

The following table sets out the common shares and options outstanding as at the date of this MD&A:


			Outstanding as at March 11, 2024
Common Shares			146,938
Options(1)			4,713
			151,651

(1)Each option is convertible or exchangeable into one common share of the Company.


9. Non-GAAP Financial Measures

Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS Accounting Standards, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Other companies may calculate these measures differently.

Average realized gold and silver price

Average realized gold and silver price per ounce is calculated by dividing the Company’s gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:


		Q4, 2023		2023		2022
Revenues from financial statements		$	61,320	$	245,130	$	43,510
Ag sales		(29,452)		(131,867)		(23,784)
Au sales	A	31,868		113,263		19,726
Au oz sold during the period	B	16,100		58,200		11,400
Average realized Au price per oz sold	A/B	$	1,979	$	1,946	$	1,730

Revenues from financial statements		$	61,320	$	245,130	$	43,510
Au sales		(31,868)		(113,263)		(19,726)
Ag sales	A	29,452		131,867		23,784
Ag oz sold during the period	B	1,275,300		5,616,300		1,105,700
Averaged realized Ag price per oz sold	A/B	$	23.09	$	23.48	$	21.51

Capital expenditures

Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.

The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:


	Q4, 2023		2023
Payments for mineral properties, plant and equipment	$	17,327	$	51,257
Payments for equipment leases	30		112
Total capital expenditures	17,357		51,368
Less: Non-sustaining capital expenditures	(5,332)		(14,224)
Sustaining capital expenditures	$	12,025	$	37,144


SILVERCREST METALS INC.			16


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

Free cash flow

Free cash flow, a non-GAAP financial metric, subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS Accounting Standard measure.


	Q4, 2023		2023
Net cash provided by operating activities	$	36,096	$	158,261
Less: sustaining capital expenditures	(12,025)		(37,145)
Free cash flow	$	24,071	$	121,116
Free cash flow per share (basic)	$	0.16	$	0.82
Weighted average shares outstanding (basic)	146,334		146,882

Treasury assets

SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:


	2023		2022
Cash and cash equivalents	$	85,964	$	50,761
Bullion	19,191		—
Treasury assets	$	105,155	$	50,761

Cash costs

Cash costs are a non-GAAP financial metric which includes production costs, royalties and minesite general and administrative costs. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.

AISC

All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes all other general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.

Cash costs and AISC are calculated as follows:


	Q4, 2023		2023
Production costs	$	17,555	$	74,108
Royalties	490		1,368
General and administrative expenses, minesite	999		3,703
Total cash costs	19,044		79,179
General and administrative expenses, other	5,500		12,053
Reclamation accretion expense	139		493
Sustaining capital expenditures	12,025		37,145
Total AISC	$	36,708	$	128,870
Silver equivalent ounces sold (koz)	2,555		10,244
Cash costs (per AgEq sold)	$	7.45	$	7.73
AISC (per AgEq sold)	$	14.36	$	12.58

Net cash

SilverCrest calculates net cash by deducting debt from cash and cash equivalents as reported in the consolidated statements of financial position. The Company believes that in addition to conventional measures prepared in accordance with IFRS Accounting Standards, net cash is useful to evaluate the Company’s and liquidity and capital resources.


	2023		2022
Cash and cash equivalents	$	85,964	$	50,761
Debt	—		(49,591)
Net cash	$	85,964	$	1,170


SILVERCREST METALS INC.			17


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)


10. Review of Annual and Quarterly Results

The following table sets out selected annual financial information derived from the Company’s audited annual financial statements for each of the three most recently completed financial years of the Company.


	2023		2022		2021
Revenue	$	245,130	$	43,510	$	-
Earnings for the period	$	116,720	$	31,301	$	(22,764)
Earnings per common share - basic	$	0.79	$	0.21	$	(0.16)
Earnings per common share - diluted	$	0.79	$	0.21	$	(0.16)
Total assets	$	460,174	$	355,349	$	368,977
Non-current financial liabilities(1)	$	6,076	$	41,048	$	90,144

(1)Non-current financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities

The following table sets out selected quarterly results over a period encompassing the most recently completed eight quarters. The most significant factors affecting results in the quarters presented were the commissioning of the Las Chispas plant during Q2, 2022 with revenue, production costs and depreciation recognized starting in Q3, 2022. Additionally, the Company's net income was impacted by foreign exchange gains and losses on foreign denominated cash and cash equivalents and VAT receivables.


	Quarter Ended
2023	Mar 31		Jun 30		Sep 30		Dec 31
Revenue	$	57,983	$	61,999	$	63,828	$	61,320
Earnings for the period	$	27,165	$	23,702	$	29,936	$	35,917
Earnings per common share - basic	$	0.18	$	0.16	$	0.20	$	0.24
Earnings per common share - diluted	$	0.18	$	0.16	$	0.20	$	0.24


	Quarter Ended
2022	Mar 31		Jun 30		Sep 30		Dec 31
Revenue	$	-	$	-	$	2,719	$	40,791
Earnings (loss) for the period	$	(8,747)	$	9,605	$	25,212	$	5,231
Earnings (loss) per common share - basic	$	(0.06)	$	0.07	$	0.17	$	0.03
Earnings (loss) per common share - diluted	$	(0.06)	$	0.06	$	0.17	$	0.04


11. Related Party Transactions

The Company’s related parties include its subsidiaries, and key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation.

Compensation of key management personnel

Key management personnel compensation is summarized as follows:


	2023		2022
Short-term employee benefits(1)	$	3,257	$	2,891
Share-based compensation(2)	2,552		2,285
	$	5,809	$	5,176

(1)Includes annual salaries and short-term incentives.

(2)Includes annual stock option grants, DSUs, RSUs, and PSUs.


12. Risks and Uncertainties

The Company is exposed to many risks in conducting its business, including but not limited to: financial instrument risks being: liquidity risk, price risk, credit risk, currency risk, and interest rate risk. Other risks include mineral project risk, income tax risk, and health crisis risk. These risks are described below.

Financial Instrument Risk

The Company is exposed to financial risks, including credit risk, liquidity risk, price risk, interest rate risk, and currency risk. The Company's exposures and management of each of those risks is described in the 2023 Annual Financial Statements under Note 8 "Financial Instruments".


SILVERCREST METALS INC.			18


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

1)Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and accounts receivable. The Company limits exposure to credit risk on liquid financial assets through maintaining its cash and cash equivalents and bullion with high‐credit quality financial institutions. The Company has liquid financial assets on deposit with or held by multiple high‐credit quality financial institutions as a risk mitigation practice. The Company’s cash and cash equivalents are on deposit with the Bank of Montreal ("BMO") and the Bank of Nova Scotia (“BNS”) in Canada and BNS in Mexico. Bullion is stored with BMO in Canada. The Company has not recognized any expected credit losses with respect to interest receivable as the amounts are due from high‐credit quality financial institutions and the risk of default is considered negligible. The carrying amount of financial assets, as stated in the consolidated statement of financial position, represents the Company’s maximum credit exposure.

2)Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. We manage liquidity risk through the ongoing monitoring of projected and actual cash flows. Our reporting, planning, and budgeting procedures play a crucial role in assessing the funds necessary to sustain both our regular operational needs, expansion and exploration initiatives. We consistently scrutinize both capital and operating expenses, actively seeking opportunities to reduce and limit non-essential expenditures. The Company also ensures its cash and cash equivalents are held with high quality financial institutions and available on demand. The Company also has access to its $70 million Revolving Credit Facility which remains undrawn at December 31, 2023.

3)Currency Risk

The Company is exposed to foreign currency risk through the following financial assets and liabilities, expressed in USD:


	CAD		MXN		Total
December 31, 2023
Cash and cash equivalents	$	9,502	$	6,421	$	15,923
Accounts receivable	6		70		76
Value-added taxes receivable	47		28,393		28,440
Total financial assets	9,555		34,884		44,439

Less: accounts payable and accrued liabilities	(6,445)		(5,578)		(12,023)
Net financial assets	$	3,110	$	29,306	$	32,416

The Company is primarily exposed to fluctuations in the value of CAD against USD and USD against MXN. With all other variables held constant, a 1% change in CAD against USD and USD against MXN would result in the following impact on the Company's net income (loss) for the year:


			December 31, 2023
USD/CAD exchange rate - increase/decrease 1%			30
USD/MXN exchange rate - increase/decrease 1%			209

4)Interest Rate Risk

Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates which will impact the yield generated on cash and cash equivalent balances and the


SILVERCREST METALS INC.			19


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

interest rates paid on any drawn portion of the Company's Revolving Credit Facility, as noted in the MD&A section "8. Liquidity and Capital Position".

5)Price Risk

Mineral Project Risk

The Company is exposed to risk factors inherent in operating a precious metals mine. The commercial viability of these operations hinges on various elements, including mining and processing costs, deposit characteristics such as size, grade, and infrastructure accessibility, as well as the cyclical nature of metal prices and governmental regulations. Factors such as flooding, permit issues, infrastructure failures, and community-related concerns also pose threats to our mining operation. While the precise impact of these factors is uncertain, their convergence could render the mine economically unfeasible, potentially leading to closure.

Income Tax and VAT Risk

In the normal course of business, the Company is subject to assessment by taxation authorities in various jurisdictions. VAT, income tax provisions and income tax filing positions (together "Tax") require estimates and interpretations of income tax rules and regulations of the various jurisdictions in which the Company operates and judgments as to their interpretation and application to the Company's specific situation. The Company's business and operations of the business and operations of its subsidiaries is complex, and the Company has, historically, undertaken a number of significant financings and other material transactions. While the Company's management believes that the provision for Taxes is appropriate and in accordance with IFRS Accounting Standards and applicable legislation and regulations, Tax filing positions are subject to review and adjustment by taxation authorities, which may challenge the Company's interpretation of the applicable tax legislation and regulations. Any review or adjustment may have a material adverse effect on the Company's financial condition.

The introduction of new Tax laws, Tax reforms, regulations or rules, or changes to, or differing interpretation of, or application of, existing Tax laws, regulations or rules in Canada or México or any other countries in which the Company's subsidiaries may be located, or to which shipments of products are made, could result in an decrease or increase in the Company's Taxes receivables or payables, respectively, or other governmental charges, interest and penalties, duties or impositions. No assurance can be given that new Tax laws, tax reforms, regulations or rules will not be enacted or that existing Tax laws, regulations or rules will not be changed, interpreted or applied in a manner which could result in the Company's profits being subject to additional taxation, interest and penalties, or which could otherwise have a material adverse effect on the Company.

Health Crises Risk

Global markets, including the mining industry, have faced adverse impacts from emerging infectious diseases, notably the recent COVID-19 pandemic. A significant resurgence or continued outbreaks of COVID-19 or other health pandemics could trigger a widespread crisis, leading to economic downturns affecting many countries. Such volatility in global economic conditions could adversely affect commodity prices, demand for metals, credit availability, investor confidence, and overall financial market liquidity, thereby impacting the Company's business operations and the market value of its securities. Moreover, inadequate responses to infectious diseases or government-imposed restrictions may disrupt mining operations, leading to labor shortages, supply chain disruptions, and regulatory challenges. Given the uncertainties surrounding the geographic spread and duration of outbreaks, the Company cannot accurately predict the extent of the impact on its operations or financial results.

Given that the Company operates internationally, determining how the Company may be impacted or when operations may return to normal is complex. Any new outbreaks or the persistence of existing ones present substantial risks to the Company's business and operational performance. Hence, continuous monitoring of global health situations and implementing responsive measures are crucial for mitigating potential adverse effects.


SILVERCREST METALS INC.			20


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

Besides the risks discussed elsewhere in this MD&A, there are other risks and uncertainties that have affected the Company's financial statements or that may affect them in the future. See "Risk Factors" in the Company's AIF for other risks affecting or that could potentially affect the Company.

Macroeconomic Risk

Global financial markets have experienced extreme volatility as a result of the recent COVID-19 pandemic and current geopolitical conflicts. Events in global financial markets, and the volatility of global financial conditions, will continue to have an impact on the global economy. Many industries, including the mining sector, are impacted by financial markets. Some of the key impacts of financial market turmoil include devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. Financial institutions and large corporations may be forced into bankruptcy or need to be rescued by government authorities. Access to financing may also be negatively impacted by future liquidity crises throughout the world. These factors may impact the Company’s ability to obtain equity or debt financing and, where available, to obtain such financing on terms favorable to the Company. Increased levels of volatility and market turmoil could have an adverse impact on the Company’s operations and planned growth and the trading price of the securities of the Company may be adversely affected.

Bullion Risk

The Company has strategically allocated funds into physical gold and silver bullion, aiming to establish a stable store of value to counteract the effects of inflation on its cash reserves. These bullion holdings are recorded at fair value, with any resulting gains or losses reflected in the Consolidated Income Statement. Due to the inherent volatility in precious metal prices, there is no guarantee that these bullion investments will effectively shield against inflation. In fact, fluctuations in market prices may lead to potential mark-to-market losses.


13. Material Accounting Policies, Standards and Judgements

The preparation of consolidated financial statements in accordance with IFRS Accounting Standards requires management to make judgments, estimates, and assumptions that affect the reported amounts in the consolidated financial statements. These accounting estimates represent management estimates and judgments that are uncertain, and any changes in these could materially impact the Company’s financial statements. Management continuously reviews its estimates, judgments and assumptions using the most current information available. The significant judgments and key sources of estimation uncertainty in the application of accounting policies are described in Note 5 and Note 6 of the 2023 Annual Financial Statements, respectively.

Readers should also refer to Note 3 of the 2023 Annual Financial Statements, for the Company’s summary of material accounting policies.


												Amount


Interest paid(1)												(7,568)
Interest received(2)												2,715

(1)Previously presented as loan interest payments included in financing activities.

(2)Previously presented in investing activities.

Application of New and Revised Accounting Standards


SILVERCREST METALS INC.			21


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

Accounting Standards Issued but Not Yet Applied

Presentation of Financial Statements (Amendments to IAS 1)

There are no other standards or amendments or interpretations to existing standards issued but not yet effective that are expected to have a material impact on the Company.


14. Disclosure and Internal Control Procedures

Management is responsible for establishing and maintaining effective internal control over financial reporting and disclosure controls and procedures. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS Accounting Standards.

The Company's internal control over financial reporting includes the following:

•Ensuring maintenance of records that accurately and fairly reflect the Company's transactions and dispositions of the assets of the Company;

•Providing reasonable assurance that transactions are appropriately recorded to facilitate the preparation of consolidated financial statements in accordance with IFRS Accounting Standards.

•Ensuring that receipts and expenditures are made in accordance with authorizations of management and the Board of Directors; and

•Providing reasonable assurance that any unauthorized acquisition, use, or disposition of Company assets, which could have a material impact the Company's consolidated financial statements, is either prevented or promptly detected.

Disclosure controls and procedures are designed to provide reasonable assurance that other financial information disclosed publicly fairly presents in all material respects the financial condition, results of operations and cash flows of the Company for the periods presented in this MD&A and SilverCrest’s Annual Financial Statements. The Company’s disclosure controls and procedures include processes designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to management by others within those entities to allow timely decisions regarding required disclosure.

Together, the internal control over financial reporting and disclosure controls and procedures frameworks provide internal control over financial reporting and disclosure. Due to its inherent limitations, internal control over financial reporting and disclosure may not prevent or detect all misstatements. Further, the effectiveness of internal control is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may change. The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events. Therefore, even those systems determined effective can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

There were no changes in the Company’s internal control over financial reporting and disclosure controls and procedures during the year ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

The Company's management, at the direction of the CEO and CFO, assessed the effectiveness of the Company's internal control over financial reporting and disclosure controls and procedures as of December 31, 2023. Based on that evaluation, management concluded that the Company’s internal control over financial reporting and disclosure controls and procedures was effective as at December 31, 2023. The effectiveness of the Company's internal control over financial reporting was based on the criteria established in Internal Control – Integrated Framework (2013) as issued by the Committee of Sponsoring Organizations of the Treadway Commission.


SILVERCREST METALS INC.			22


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

SilverCrest’s annual management report on internal control over financial reporting and the integrated audit report of SilverCrest’s auditors for the year ended December 31, 2023 will be included in SilverCrest’s 2023 Annual Financial Statements on file with the SEC and Canadian provincial securities regulatory authorities.


15. Mineral Reserves and Resources

The Mineral Resource Estimates were prepared by Yungang Wu, P. Geo., and Eugene Puritch, P.Eng., from P&E Mining Consultants Inc. (“P&E”). This estimate was completed for underground mining of in-situ vein deposits at the Babicanora and Las Chispas Areas and for surface extraction of stockpiles from historical and current operations. All drilling, surveying and assay databases were provided by SilverCrest including data up to the cut-off date of June 30, 2022 for M&I Resource Estimates and March 21, 2023 for the Inferred Mineral Resource Estimate.

Full details are available in the 2023 Technical Report available on the SilverCrest website, including the following Mineral Resource Estimate and Mineral Reserve Estimate.

Mineral Resource Estimate


Area	Classification	Tonnes (k)	Au (gpt)	Ag (gpt)	AgEq (gpt)	Contained Au (koz)	Contained Ag (koz)	Contained AgEq (koz)
Babicanora Area Veins	Measured	207	13.67	1,289	2,376	91	8,561	15,779
	Indicated	1,726	7.09	658	1,222	394	36,540	67,832
	M&I	1,933	7.79	726	1,345	484	45,101	83,611
Las Chispas Area Veins	Indicated	442	4.22	552	888	60	7,835	12,605
Total Undiluted Veins	M&I	2,375	7.13	693	1,260	544	52,936	96,216
Historical Stockpiles	Indicated	152	1.14	112	203	6	546	990
Run of Mine (“ROM”) Stockpiles	Measured	168	5.56	428	869	30	2,311	4,699
Total (Veins + stockpiles)	M&I	2,694	6.69	644	1,176	580	55,794	101,905
Babicanora Area Veins	Inferred	954	4.49	267	624	138	8,188	19,123
Las Chispas Area Veins	Inferred	374	1.81	274	418	22	3,296	5,024
Total Undiluted Veins	Inferred	1,327	3.73	269	566	159	11,484	24,147

(1)The effective date for M&I Resource estimates of the veins and stockpiles was June 30, 2022, while Inferred Resource estimates for the veins was effective March 21, 2023.

(2)Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

(3)The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

(4)The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

(5)Mined areas as of June 30, 2022, were removed from the wireframes and block models.

(6)AgEq is based on Ag:Au ratio of 79.51:1 calculated using $1,650/oz Au and $21/oz Ag, with average metallurgical recoveries of 97.9% Au and 96.7% Ag, and 99.9% payable for both Au and Ag.

(7)Mineral Resources are inclusive of the Mineral Reserves.

(8)Cut-off grade (“COG”) used for vein material is 150 gpt AgEq and, for Historical stockpiles is 110 gpt AgEq. No cut-off grade was applied to the ROM stockpile as it is based on material mined.


SILVERCREST METALS INC.			23


			Management Discussion and Analysis
			For the year ended December 31, 2023 (All amounts are in USD with tabular amounts in thousands of USD)

The Mineral Reserve estimate was prepared by Patrick Langlais, P.Eng., Entech Mining Ltd. dated June 30, 2022.

Proven and Probable Mineral Reserve Estimate


Area	Classification	Tonnes (k)	Au (gpt)	Ag (gpt)	AgEq (gpt)	Contained Au (koz)	Contained Ag (koz)	Contained AgEq (koz)
Babicanora	Proven	345	7.03	665	1,224	78	7,382	13,589
Babicanora	Probable	2,334	3.90	370	679	292	27,734	50,987
Las Chispas	Proven	—	—	—	—	—	—	—
Las Chispas	Probable	401	3.09	399	645	40	5,152	8,323
Babicanora + Las Chispas	Proven + Probable	3,081	4.14	407	736	410	40,269	72,899
Historical Stockpile	Proven	150	1.14	112	203	6	541	980
ROM Stockpile	Proven	168	5.56	428	869	30	2,311	4,699
Total Stockpile	Proven	318	3.47	279	555	36	2,852	5,679
Total Mineral Reserve Estimate	Proven + Probable	3,399	4.08	395	719	446	43,121	78,579

(1)The effective date of the estimate is June 30, 2022.

(2)The Mineral Reserve is estimated using the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.

(3)The Mineral Reserve is estimated with a 372 gpt AgEq fully loaded COG for the deposit and an 85 gpt AgEq Marginal COG for development.

(4)The Mineral Reserve is estimated using long-term prices of $1,650/oz for gold and $21.00/oz for silver.

(5)A government gold royalty of 0.5% is included in the Mineral Reserve estimates.

(6)Stockpile values were provided by SilverCrest and account for approximately 7% of mineral reserve ounces.

(7)The Mineral Reserve is estimated with a maximum mining recovery of 95%, with reductions in select areas based on geotechnical guidelines.

(8)The Mineral Reserve presented includes both internal and external dilution. The external dilution includes a mining dilution of 0.5 m width on both the hanging wall and footwall for the long hole mining method (1 m total), and a 0.2 m width on both the hanging wall and footwall for the resue mining methods (0.4 m total). Cut-and-fill mining was assumed as breasting in all cases, using the ore sill drive width of 3.3 m as a minimum mining width inclusive of dilution. Additional external dilution was applied in select areas based on geotechnical recommendations. Backfill dilution is also included and represents 4% for the long hole mining method and 7% for cut-and-fill and resue mining methods.

(9)A minimum mining width of 1.5 m, 3.3 m and 0.5 m was used for the long-hole, cut-and-fill and resue mining methods, respectively.

(10)Average metallurgical recoveries applied are 97.9% Au and 96.7% Ag.

(11)The economic viability of the Mineral Reserve has been demonstrated.

(12)AgEq(gpt) = (Au(gpt) * 79.51 + Ag(gpt)). AgEq calculations consider metal prices, metallurgical recoveries, Mexican Government gold royalty and tax rate.


SILVERCREST METALS INC.			24

CERTIFICATION

I, N. Eric Fier, certify that:

1.I have reviewed this annual report on Form 40-F of SilverCrest Metals Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;

4.The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the issuer's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer's internal control over financial reporting; and

5.The issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee of the issuer's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting.


Date:March 11, 2024	By:	/s/ N. Eric Fier
		N. Eric Fier
		Chief Executive Officer and Director
		(Principal Executive Officer)

CERTIFICATION

I, Anne Yong, certify that:

1.I have reviewed this annual report on Form 40-F of SilverCrest Metals Inc.;

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting.


Date: March 11, 2024	By:	/s/ Anne Yong
		Anne Yong
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SilverCrest Metals Inc. (the "Company") on Form 40-F for the period ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, N. Eric Fier, Chief Executive Officer and Director of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


March 11, 2024			/s/ N. Eric Fier
			N. Eric Fier
			Chief Executive Officer and Director
			(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to SilverCrest Metals Inc. and will be retained by SilverCrest Metals Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of SilverCrest Metals Inc. (the "Company") on Form 40-F for the period ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Anne Yong, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


March 11, 2024			/s/ Anne Yong
			Anne Yong
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

Consent of Independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in this Annual Report on Form 40-F for the year ended December 31, 2023 of SilverCrest Metals Inc. of our report dated March 11, 2024, relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in Exhibit 99.2 incorporated by reference in this Annual Report on Form 40-F.

We also consent to reference to us under the heading “Interests of Experts” in the Annual Information Form, filed as Exhibit 99.1 to this Annual Report on Form 40-F.

/s/PricewaterhouseCoopers LLP

Vancouver, Canada

March 11, 2024

CONSENT OF EXPERT

The undersigned does hereby consent to:

(1)the use of the written disclosure derived from the report entitled "Las Chispas Operation Technical Report", dated September 5, 2023, with an effective date of July 19, 2023 (the "Technical Report") in the Annual Information Form for the year ended December 31, 2023 ("AIF") of SilverCrest Metals Inc. (the "Company"), and the Company's Management's Discussion and Analysis for the year ended December 31, 2023 (the "MD&A") being filed as an exhibits to the Company's Form 40-F Annual Report for the fiscal year ended December 31, 2023, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission; and

(2)the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF and the 40-F.

BBE GROUP CANADA

By: /s/ Wynand Marx

Wynand Marx, Chief Executive Officer, BBE Consulting

March 11, 2024

CONSENT OF EXPERT

I, Jarita Barry, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Jarita Barry
		Jarita Barry, P.Geo.
March 11, 2024

CONSENT OF EXPERT

I, David Burga, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ David Burga
		David Burga P.Geo.
March 11, 2024

CONSENT OF EXPERT

The undersigned does hereby consent to:

(2)the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF, the MD&A and the 40-F.

ENTECH MINING LTD.

By: /s/ Patrick Langlais

Patrick Langlais, P.Eng., Senior Mine Engineer

March 11, 2024

CONSENT OF EXPERT

I, N. Eric Fier, do hereby consent to:

(1)the inclusion of the scientific and technical information relating to the mineral properties of SilverCrest Metals Inc. (the "Company") disclosed in the Company's Annual Information Form for the year ended December 31, 2023 (the "AIF"), and the Company's Management's Discussion and Analysis for the year ended December 31, 2023 (the "MD&A") being filed as exhibits to the Company's Form 40-F Annual Report for the fiscal year ended December 31, 2023, and any amendments thereto (the "40-F"), being filed with the United States Exchange Commission; and

(2)the use of my name in connection with reference to my involvement in the review of the scientific and technical information relating to the Company's mineral properties in the AIF and MD&A and to references to my name in the AIF, the MD&A and the 40-F.


	By:	/s/ N. Eric Fier
		N. Eric Fier, CPG, P.Eng
March 11, 2024

CONSENT OF EXPERT

The undersigned does hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	HYDRO-RESSOURCES INC.


	By:	/s/ Michael Verreault
		Name: Michael Verreault Title: Hydrogeologist - President
March 11, 2024

CONSENT OF EXPERT

The undersigned does hereby consent to:

(2)the use of our name in connection with reference to our involvement in the preparation of the Technical Report, and to references of the Technical Report and our name, in the AIF and the 40-F.

KNIGHT PIÉSOLD LTD.

By: /s/ Ben Peacock

Ben Peacock, Specialist Engineer, Associate

March 11, 2024

CONSENT OF EXPERT

I, Patrick Langlais, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF, the MD&A, and the 40-F.


	By:	/s/ Patrick Langlais
		Patrick Langlais, P.Eng.
March 11, 2024

CONSENT OF EXPERT

I, Christopher Lee, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Christopher Lee
		Christopher Lee, P.Eng
March 11, 2024

CONSENT OF EXPERT

I, Wynand Marx, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Wynand Marx
		Wynand Marx, Chief Executive Officer, BBE Consulting
March 11, 2024

CONSENT OF EXPERT

I, Kevin Murray, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Kevin Murray
		Kevin Murray, P.Eng
March 11, 2024

CONSENT OF EXPERT

The undersigned does hereby consent to:

P&E MINING CONSULTANTS INC.

By: /s/ Eugene Puritch

Eugene Puritch, P. Eng., President & Principal Mining Engineer

March 11, 2024

CONSENT OF EXPERT

I, Ben Peacock, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Ben Peacock
		Ben Peacock, P.Eng.
March 11, 2024

Humberto F. Preciado, PE WSP USA Inc.

2000 S Colorado Blvd, Suite 2-100, Denver, CO, USA

CONSENT OF QUALIFIED PERSON

I, Humberto F. Preciado state that I am responsible for preparing or supervising the preparation of a part of the technical report summary titled "Las Chispas Operation Technical Report”, dated September 5, 2023, with an effective date of July 19, 2023, as signed and certified by me (the “Technical Report”).

Furthermore, I state that:

(1)I consent to the public filing of the Technical Report by SilverCrest Metals Inc.;

(2)the document the Technical Report supports is the Annual Information Form for the year ended December 31, 2023 ("AIF") of SilverCrest Metals Inc. (the "Company"), and the Company's Management's Discussion and Analysis for the year ended December 31, 2023 (the "MD&A") being filed as an exhibits to the Company's Form 40-F Annual Report for the fiscal year ended December 31, 2023, and any amendments thereto (the "40-F"), being filed with the United States Securities and Exchange Commission (the “Document”);

(3)I consent to the use of my name in the document, or any quotation from or summarization, in the Document of the parts of the Technical Report for which I am responsible, and to the filing of the Technical Report as an exhibit to the Document; and

(4)I confirm that I have read the Document, and that the Document fairly and accurately reflects, in the form and context in which it appears, the information in the parts of the Technical Report for which I am responsible.

Dated at Denver, Colorado this 11th day of March, 2024.

“Signed and stamped”

Signature of Qualified Person

Humberto F. Preciado, P.E

CONSENT OF EXPERT

The undersigned does hereby consent to:





	By:	/s/ Eugene Puritch
		Eugene Puritch, P.Eng.
March 11, 2024

CONSENT OF EXPERT

I, William Stone, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ William Stone
		William Stone, P.Geo.
March 11, 2024

CONSENT OF EXPERT

I, Michael Verreault, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Michael Verreault
		Michael Verreault, P.Geo.
March 11, 2024

CONSENT OF EXPERT

I, Scott Weston, do hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	By:	/s/ Scott Weston
		Scott Weston, P.Geo.
March 11, 2024

CONSENT OF EXPERT

The undersigned does hereby consent to:

(2)the use of my name in connection with reference to my involvement in the preparation of the Technical Report, and to references of the Technical Report and my name, in the AIF and the 40-F.


	WSP CANADA INC.

	By:	/s/ Christopher Lee
		Christopher Lee, P.Eng
March 11, 2024

CONSENT OF EXPERT

I, Yungang Wu, do hereby consent to:


	By:	/s/ Yungang Wu
		Yungang Wu, P.Geo.
March 11, 2024

Cover	12 Months Ended
Cover	Dec. 31, 2023 shares
Entity Addresses [Line Items]
Document Type	40-F
Document Registration Statement	false
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2023
Entity File Number	001-38628
Entity Registrant Name	SilverCrest Metals Inc.
Entity Incorporation, State or Country Code	Z4
Entity Primary SIC Number	1040
Entity Address, Address Line One	570 Granville Street
Entity Address, Address Line Two	Suite 501
Entity Address, City or Town	Vancouver
Entity Address, State or Province	BC
Entity Address, Postal Zip Code	V6C 3P1
Entity Address, Country	CA
City Area Code	604
Local Phone Number	694-1730
Title of 12(b) Security	Common Shares, no par value
Trading Symbol	SILV
Security Exchange Name	NYSE
Annual Information Form	true
Audited Annual Financial Statements	true
Entity Common Stock, Shares Outstanding	146,934,814
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Amendment Flag	false
Entity Central Index Key	0001659520
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Document Financial Statement Error Correction [Flag]	false
Business Contact
Entity Addresses [Line Items]
Contact Personnel Name	C T Corporation System
Entity Address, Address Line One	1015 15th Street N.W.
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	DC
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	20005
City Area Code	202
Local Phone Number	572-3100

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	271
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Vancouver, Canada

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents (Note 21)	$ 85,964	$ 50,761
Bullion (Note 9)	19,191	0
Trade and other receivables	114	179
Value-added tax receivables	16,250	15,985
Inventories (Note 10)	49,798	40,203
Prepaids and other expenses	7,216	4,690
Total current assets	178,533	111,818
Non-current assets
Mineral properties, plant and equipment (Note 11)	246,728	228,098
Deferred tax assets (Note 20)	22,723	0
Long-term value-added tax receivables	12,190	15,433
Total assets	460,174	355,349
Current liabilities
Accounts payable and accrued liabilities	17,924	17,676
Tax liabilities (Note 20, 8(a))	33,614	5,740
Derivative liabilities	168	0
Lease obligations	67	116
Debt (Note 13)	0	13,393
Total current liabilities	51,773	36,925
Non-current liabilities
Long-term lease obligations	221	260
Deferred tax liabilities (Note 20)	0	382
Long-term debt (Note 13)	0	36,198
Reclamation provision (Note 14)	5,855	4,590
Total liabilities	57,849	78,355
Equity (Note 15)
Issued capital	406,890	405,811
Share option reserve	11,338	10,945
Currency translation reserve	(3,538)	(13,793)
Deficit	(12,365)	(125,969)
Total equity	402,325	276,994
Total liabilities and equity	$ 460,174	$ 355,349

CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Profit or loss [abstract]
Revenue (Note 16)	$ 245,130	$ 43,510
Cost of sales
Production costs (Note 17)	(74,108)	(13,758)
Depreciation (Note 11)	(21,348)	(1,116)
Royalties	(1,368)	(216)
Total operating expense	(96,824)	(15,090)
Mine operating earnings	148,306	28,420
General and administrative expenses (Note 18)	(15,756)	(9,746)
Exploration and project expenses	(726)	(5,444)
Foreign exchange (losses) gains	(7,247)	27,913
Earnings from operations	124,577	41,143
Interest income	4,035	2,811
Interest and finance expense (Note 19)	(2,713)	(6,589)
Other expense	(2,653)	0
Earnings before income taxes	123,246	37,365
Income tax expense (Note 20)	(6,526)	(6,064)
Net earnings	116,720	31,301
Other comprehensive income
Currency translation adjustment	10,255	(27,987)
Total comprehensive earnings	$ 126,975	$ 3,314
Net earnings attributable to common shareholders
Basic earnings per share (in usd per share)	$ 0.79	$ 0.21
Diluted earnings per share ( in usd per share)	$ 0.79	$ 0.21
Weighted average shares outstanding Basic ( in shares)	146,882	146,164
Weighted average shares outstanding Diluted ( in shares)	147,539	152,190

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating activities
Net earnings for the year	$ 116,720	$ 31,301
Income tax expense (Note 20)	6,526	6,064
Depreciation (Note 11)	21,348	1,937
Share-based compensation expense	4,190	2,398
Unrealized foreign exchange losses (gains)	7,942	(21,868)
Interest income	(4,035)	(2,811)
Interest expense (Note 19)	1,461	6,566
Interest paid (Note 21)	(1,461)	(7,568)
Interest received (Note 21)	4,035	2,715
Income taxes paid	(977)	0
Other operating activities (Note 21)	(242)	0
Net change in non-cash working capital items (Note 21)	2,754	(28,644)
Cash flows from (used in) operating activities	158,261	(9,910)
Investing activities
Payments for mineral properties, plant and equipment	(51,257)	(68,489)
Purchase of bullion	(18,674)	0
Proceeds from derivatives	264	0
Cash flows from (used in) investing activities	(69,667)	(68,489)
Financing activities
Common share proceeds	3,131	2,467
Common share repurchases	(7,145)	0
Proceeds from debt (Note 13)	0	49,583
Repayment of debt (Note 13)	(50,000)	(92,860)
Payments of equipment leases	(112)	(159)
Cash flows from (used in) financing activities	(54,126)	(40,969)
Effects of exchange rate changes on cash and cash equivalents	735	(6,386)
Increase (decrease) in cash and cash equivalents	35,203	(125,754)
Cash and cash equivalents at the beginning of the year	50,761	176,515
Cash and cash equivalents at the end of the year	$ 85,964	$ 50,761

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Issued capital	Share option reserve	Currency translation reserve	Deficit
Beginning balance (in shares) at Dec. 31, 2021		145,649
Beginning balance at Dec. 31, 2021	$ 268,270	$ 401,736	$ 9,782	$ 14,194	$ (157,442)
Changes in equity [abstract]
Total comprehensive earnings	3,314			(27,987)	31,301
Net earnings for the year	31,301				31,301
Foreign exchange translation	(27,987)			(27,987)
Stock options exercised (in shares)		1,507
Shares issued on the exercise of stock options	2,467	$ 4,075	(1,608)
Share-based compensation on option grants	2,943		2,943
Stock options forfeited	0		(172)		172
Ending balance (in shares) at Dec. 31, 2022		147,156
Beginning balance at Dec. 31, 2022	276,994	$ 405,811	10,945	(13,793)	(125,969)
Changes in equity [abstract]
Total comprehensive earnings	126,975			10,255	116,720
Net earnings for the year	116,720				116,720
Foreign exchange translation	10,255			10,255
Stock options exercised (in shares)		1,283
Shares issued on the exercise of stock options	3,131	$ 5,108	(1,977)
Share-based compensation on option grants	$ 2,370		2,370
Share repurchased and cancelled ( in shares)	(1,504)
Share repurchased and cancelled	$ (7,145)	$ (4,029)			(3,116)
Ending balance (in shares) at Dec. 31, 2023		146,935
Beginning balance at Dec. 31, 2023	$ 402,325	$ 406,890	$ 11,338	$ (3,538)	$ (12,365)

Nature of Operations

12 Months Ended

Dec. 31, 2023

Disclosure Of Nature Of Operations [Abstract]

Nature of Operations


1. Nature of Operations

SilverCrest engages in silver and gold mining and related activities, including exploration and mine development from its Las Chispas mine located in Sonora, Mexico.

Basis of Preparation

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Basis of Preparation


2. Basis of Preparation

These consolidated financial statements were approved for issuance by the Board of Directors on March 11, 2024.

Material Accounting Policies

12 Months Ended

Dec. 31, 2023

Material Accounting Policies [Abstract]

Material Accounting Policies


3. Material Accounting Policies