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GR SILVER MINING LTD. Management Reports 2025
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Management Reports
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GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
INTRODUCTION
The following Management Discussion and Analysis ("MD&A") provides relevant information on the financial condition and financial results of GR Silver Mining Ltd. (the "Company" or "GR Silver") for the three and nine-months ended September 30, 2025.
The purpose of this MD&A is to provide readers with management's overview of the past performance of, and outlook for, GR Silver. The report also provides information to enhance readers' understanding of the Company's consolidated financial statements and highlights important business trends and risks affecting the Company's financial performance. It is intended to complement and supplement the Company's consolidated financial statements, but it does not form part of those consolidated financial statements. This MD&A should be read in conjunction with the condensed interim consolidated financial statements for the nine-month period ended September 30, 2025 (the "Interim Financial Statements") and the audited consolidated financial statements and notes thereto for the years ended December 31, 2024, and 2023 (the "Annual Financial Statements").
All financial information in this document, including the Company's financial position, results of operations and cash flows is prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), unless otherwise stated. Unless otherwise stated, all dollar figures included in this MD&A are expressed in Canadian dollars.
The common shares of the Company trade on the TSX Venture Exchange under the ticker symbol "GRSL", on the OTCQB under the ticker symbol "GRSLF", and on the Frankfurt Stock Exchange under the ticker symbol "GPE". The Company is a reporting issuer in provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. All information contained in this MD&A is current as of November 27, 2025, unless otherwise stated.
Forward-Looking Statements
This document contains forward-looking statements, please see section "Forward-Looking Statements".
Qualified Person and Quality Control/Quality Assurance
Marcio Fonseca, M.Sc., D.I.C, P.Geo., the Company's President and Chief Executive Officer and a director and a qualified person as defined by NI 43-101, has supervised the preparation of the scientific and technical information that forms the basis for the mineral property disclosure in this MD&A and has approved the disclosure herein. Mr. Fonseca is not independent of the Company, as he is a shareholder and an officer and director of the Company.
The Company has implemented QA/QC procedures which include insertion of blank, duplicate, and standard samples in all sample lots sent to SGS de México, S.A. de C.V. laboratory facilities in Durango, Mexico, for sample preparation and assaying. For every sample with results above Ag >100 ppm (over limits), these samples are re-assayed by SGS de Mexico. The analytical methods are Four Acid Digest and Inductively Coupled Plasma Optical Emission Spectrometry with Lead Fusion Fire Assay with gravimetric finish for silver above over limits. For gold assays the analytical methods are Lead Fusion and Atomic Absorption Spectrometry Lead Fusion Fire Assay and gravimetric finish for gold above over limits (>10 ppm).
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
DESCRIPTION OF BUSINESS
The Company is in the business of silver exploration, drilling for potential resource expansion on the southwestern edge of the Sierra Madre Occidental, Sinaloa, Mexico. Consistent with the Company's business purpose, its focus is on the San Marcial Property and the Plomasas Property, which are collectively known as the "Plomasas Project". Together these properties comprise a core land package, with numerous silver mineralized zones on surface or at shallow depth in the recently discovered San Marcial Property, including a past producing permitted underground mine at the Plomasas Property, and numerous small-scale historical mine workings indicating potential for future resource growth at the Plomasas Project. The Plomasas Project is located approximately 90 to 100 kilometres east-southeast of Mazatlán, Sinaloa, Mexico (Figure 1) in a prolific mining area, the Rosario Mining District, with nearby historical precious metal producers and with other companies progressing development of precious and base metals mining projects in the region.
The Company has identified multiple epithermal veins and hydrothermal breccias on the Plomasas Project. The recent successful step out drilling programs together with modern modelling of all data has delineated a regional geological setting with multiple targets for resource growth (Figure 2).
The Company's main business activities include exploration through core drilling of mineral exploration properties to define economic precious metals (silver and gold) and base metal deposits with the objective of potential mine development. The Company is currently focused on a step-out drilling at shallow depth and along strike from the current NI 43-101 resource area at the San Marcial Property ("Resource Area"), and a Bulk Sampling Test Mining program on the Plomasas Property, Plomasas Mine, making use of existing permits to collect metallurgical, costing, and engineering data to support future decisions related to installation of a pilot plant on site in 2026.
The Company is a British Columbia corporation. The Company's corporate office address is 1500 – 409 Granville Street, Vancouver, British Columbia, V6C 1T2.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Figure 1 – Plomosas Project Location, Sinaloa, Mexico
Figure 2 – Plomosas Project Areas, including deposits, showings, and drill hole collar locations (pink)
September 30, 2025 Management Discussion and Analysis
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GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
CORPORATE ACTIVITIES – NINE MONTH PERIOD ENDED SEPTEMBER 30, 2025, AND TO DATE OF MD&A
Financing Activities
On August 13, 2025, the Company closed an underwritten brokered private placement of 69,000,000 units at a price of $0.20 per unit for gross proceeds of $13,800,000. Each unit consisted of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at an exercise price of $0.28 per warrant until August 13, 2028. The Company paid cash finders fees of $828,000 and issued 4,140,000 broker warrants. Each broker warrant is exercisable into one unit at an exercise price of $0.20 per share until August 13, 2028.
On May 27, 2025, the Company closed a non-brokered private placement of 14,190,000 units at a price of $0.13 per unit for gross proceeds of $1,844,700. Each unit consisted of one common share of the Company and one-half of one common share purchase warrant and each whole warrant is exercisable into one common share of the Company at an exercise price of $0.19 per warrant until May 27, 2027. The Company paid cash finder’s fees of $104,442 and issued 803,400 agent warrants. Each agent warrant is exercisable into one common share at an exercise price of $0.19 per share until May 27, 2027.
During the period ended September 30, 2025, the Company raised $2,139,452 from the exercise of 14,783,592 warrants with an average exercise price of $0.145 per warrant.
Subsequent to September 30, 2025, and to the date of this MD&A the Company raised $127,246 from the exercise of 845,172 warrants with an average exercise price of $0.15 per share.
Corporate Developments
On October 2, 2025, the Company announced the appointment of Mr. Daniel Schieber as Vice President of Corporate Development & Corporate Relations, to foster existing and new relationships with shareholders and implement corporate development marketing planning.
On October 15, 2025, the Company announced the resignation of Mr. Alejandro Cano, Vice President, Operations. The Company also announced that Mr. Robert Payment, currently serving as Chief Financial Officer (CFO), assumed the role of Corporate Secretary. Mr. Payment succeeds Mr. Blaine Bailey, who retired from the position.
As part of strengthening the management in Mexico, subsequent to September 30, 2025, on November 16th the Company announced the appointment of Dr. Castulo Molina Sotello as Country Manager Mexico. Dr. Molina was previously Senior Vice President for Mexico for Coeur Mining Inc. (Coeur) and also had extensive experience in the exploration and development of Coeur’s Palmarejo Mine in Chihuahua.
Equity Compensation Granted
On January 6, 2025, the Company granted a total of 145,452 deferred share units (“DSUs”) to the Company’s non-executive directors for directors’ fees relating to the calendar quarter ended December 31, 2024, which DSUs will vest one year after their date of grant in accordance with TSXV policies.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
On April 2, 2025, the Company granted 154,836 DSUs to non-executive directors for directors' relating to the calendar quarter ended March 31, 2025, which DSUs will vest one year after their date of grant in accordance with TSXV policies.
On April 2, 2025, the Company granted 860,000 stock options to employees and consultants exercisable at a price of $0.155 for a period of five years and fully vested on the date of grant. The Company also granted 400,000 options to certain executive officers exercisable at a price of $0.155 for a period of five years vesting 1/3 on the grant date, and 1/3 on each of the first and second anniversaries of the grant date.
On June 30, 2025, the Company granted 750,000 stock options to employees exercisable at a price of $0.175 for a period of five years and fully vested on the date of grant.
On July 2, 2025, the Company granted 141,176 DSUs to non-executive directors for directors' fees related to the quarter ended June 30, 2025, which DSUs will vest one year after their date of grant in accordance with TSXV policies.
On July 16, 2025, the Company granted 3,837,205 performance share units ("PSUs") to certain executive officers of the Company vesting one year from the date of grant upon successful completion of specific 2025 Key Performance Indicators.
On October 2, 2025, the Company granted 600,000 stock options exercisable at a price of $0.33 for a period of five years to officers of the Company. The options vest 1/3 on grant, 1/3 on the first anniversary date, and 1/3 on the second anniversary date.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Exploration Updates
On March 3, 2025, the Company announced the resumption of field exploration, focusing on step-out drilling, targeting potential resource expansion at the San Marcial Area of the Plomosas Project.
On April 9, 2025, the Company announced a temporary suspension of field work at the Plomosas Project to allow time for the Government of Mexico to increase security and stability in the project region.
On May 20, 2025, the Company announced the resumption of drilling activities at the San Marcial Property, due to improved security conditions in the project region. Management continues to closely monitor the security situation.
On July 8, 2025, the Company announced that it had initiated Phase I of a two-phase underground sampling program at the historical Plomosas Mine. The program was designed to refine the geological model used in the March 2023 NI 43-101 Mineral Resource Estimate ("MRE"), collect metallurgical data to support a proposed Bulk Sampling Test Mining ("BSTM") initiative, and enhance the existing underground sampling database. Initial Phase I results have returned higher-grade polymetallic mineralization than previously reported in the MRE with assay highlights including up to 3,993 g/t AgEq from chip and channel samples. These results demonstrate the continuity and quality of mineralization in previously unmined areas of the historical mine, supporting engineering work in progress related to potential BSTM implementation, and installation of a pilot plant in 2026. The program benefits from existing permits and infrastructure, as well as access to 7.4 km of underground development, most of which remains in good condition.
On July 25, 2025, the Company announced initial results from its Step-Out Drilling Program at the San Marcial Area confirming extensions of the silver mineralization outside of the MRE boundaries. The program focused initially on two priority zones: the NW Extension and the Parallel Breccia areas, located adjacent to the existing MRE.
Initial results confirm the presence of wide, shallow, silver-mineralized hydrothermal breccias, with notable intercepts including:
- SMS25-05: 26.0 m at 122 g/t AgEq from surface, including 11.9 m at 214 g/t AgEq and 0.9 m at 716 g/t AgEq.
- SMS25-04: 36.0 m at 144 g/t AgEq from surface, including a high-grade interval of 0.3 m at 2,008 g/t AgEq.
- SMS25-03: 0.2 m at 2,359 g/t AgEq at 175.1 m downhole.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
The step- out drilling program progressed with the addition of a third target; the SE Extension in the San Marcial Area (Figure 3). Drilling has delineated new, predominantly silver mineralized zones along NE- and NW-trending structural corridors, associated with a recently identified district-scale intrusive system, and hosted in wide hydrothermal breccias. These discoveries significantly expand the footprint and exploration potential by approximately 250 metres outside of the MRE.
Initial drill holes in the SE Extension were guided by integrated geological modeling and surface sampling data, with future drilling expected to follow up on both shallow and down-plunge targets. The results validate GR Silver’s structural model and reinforce the potential for near-resource and district-scale silver resource growth in the San Marcial Area. Further drilling at the SE Extension was based on successful results from initial step out drill holes.
On August 21, 2025, the Company announced results from its ongoing Step-Out Drilling Program at the San Marcial Area. The drilling, focused adjacent to the 2023 NI 43-101 Resource Area, targeted down-dip and along-strike extensions of known mineralization, specifically at the Parallel Breccia target.
Key highlights included:
-
Hole SMS25-09, intersected 75 m at 293 g/t AgEq, including multiple intervals exceeding 1,000 g/t AgEq. The hole tested 3D geophysical anomalies and successfully confirmed continuity of the main high-grade mineralized structures at least 100 m beyond the Resource Area. Drilling returned a broad, 75 m wide, silver-dominant zone with frequent boiling textures, multiple phases of silver mineralization, and selective gold mineralization. High-grade gold values were encountered in several intervals, confirming the presence of both silver and gold mineralization at depth.
-
Hole SMS25-09 also intersected a wide chlorite-hematite hydrothermal breccia within a favorable structural setting formed by intersecting NW and –NE regional structures. This configuration may host sizeable geological traps in porous volcanoclastic rocks, significantly enhancing the potential for resource expansion at San Marcial. The high-grade silver mineralization remains open down-dip.
-
Hole SMS25-08 confirmed the down-dip continuity of silver mineralization 45 m below historical trenching, intersecting:
- 19.9 m at 250 g/t AgEq, including:
- 3.7 m at 557 g/t AgEq
- 4.2 m at 350 g/t AgEq
-
1.3 m at 954 g/t AgEq
At depth, SMS25-08 also discovered a new high-grade gold-silver vein: 1.0 m at 1,685 g/t AgEq (24.6 g/t Au, 13 g/t Ag). -
Hole SMS25-07A intercepted shallow, wide silver zones including:
- 11.1 m at 71 g/t AgEq, 125 m along strike from previously reported SMS25-04 (36 m at 114 g/t AgEq).
These results highlight mineralization continuity at shallow depths and along major structural trends, supporting the potential for near-resource expansion. Drilling remains focused on extending mineralization in three key target zones. Follow up drilling carried on during H2 2025 to continue advancing these targets.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
On September 9, 2025, the Company announced the major milestone of being granted a key 5-year drill permit for the San Marcial Property. This permit authorized additional step-out drilling to target an extensive area surrounding the MRE. The five-year Informe Preventivo ("IP") issued by the Secretaría de Medio Ambiente y Recursos Naturales ("SEMARNAT") will allow for step-out drill holes at 46 different drill sites. There is no limit on total metreage or number of drill holes that can be drilled at these drill sites. The permit provides for tremendous flexibility for on going step-out drilling and resource growth in the San Marcial Area.
The drill permit also provides the Company options for multiple drill hole orientations in the vicinities of the MRE as well as the ability to explore new targets.
On September 24, 2025 the Company announced as part of the step-out drilling program outside of the MRE, the Company initiated drilling in the Parallel Breccia Target, aiming to define new mineralized zones for future additional drilling and resource growth. Initial drill holes were successful with confirmation of new silver mineralized zones at shallow depth.
Key highlights included:
- Hole SMS25-10A intersected two distinct mineralized zones, with apparently different mineralogical compositions and origins, yet spatially associated and controlled by a NE-SW structural trend that intersects major NW-SE regional structures.
- Hole SMS25-10A intersected 9 m at 374 g/t Ag, including significant grades of Cu and W, from 24.0 m down hole, and 33 m at 1.44 g/t Au from 122.7 m down hole.
- Hole SMS25-10A is the farthest southeast that a drill hole has been drilled in the Parallel Breccia Target to date and indicates continuity of the mineralized structure over at least 500 metres from the Resource Area.
On October 15, 2025, the Company reported the results of Phase II of the Bulk Sampling Test Mining Program (the "BSTM") at the Plomosas Mine. Phase II incorporated additional sampling to support ongoing metallurgical test work at the Servicio Geológico Mexicano laboratory.
The BSTM is progressing towards the following key objectives:
- Confirmation of the presence of high-grade silver mineralized material at 21 selected areas; Phase II mapping and channel sampling in the 21 underground areas; further definition and mapping of accessible underground areas in the historical Plomosas Mine.
- Identification of high-grade, previously blasted, mineralized material, that could be a potential stockpile for pilot plant feed.
- Metallurgical test work and preliminary process engineering assessment: collect representative samples to confirm recoveries estimated by previous test work; establish initial process design criteria (including work indices) that will be the basis for preliminary flow sheets and technical specifications.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Highlights from the Phase II Program were:
Level 975
- 6.7 m at 1,040 g/t AgEq*, consisting of 903 g/t Ag, 0.03 g/t Au, 1.4% Pb, and 1.7% Zn
- 1.2 m at 2,365 g/t AgEq, consisting of 2,264 g/t Ag, 0.08 g/t Au, 0.5% Pb, and 0.9% Zn
Ramp 3
-
4.2 m at 1,018 g/t AgEq, consisting of 49 g/t Ag, 5.12 g/t Au, 6.9% Pb, and 5.9% Zn, including 0.5 m at 2,256 g/t AgEq, consisting of 102 g/t Ag, 35.7 g/t Au, 4.3% Pb, and 14.2% Zn
-
Ag Eq calculations using US$20.00/oz Ag, US$1,600/oz Au, US$0.90/lb Pb, US$1.10/lb Zn and US$3.00/lb Cu, with metallurgical recoveries of Ag – 74%, Au – 86%, Pb – 69%, Zn – 75% and Cu – 80%. Ag Eq = ((Ag grade x Ag Price x Ag recovery) + (Au grade x Au price x Au recovery) + (Pb grade x Pb price x Pb recovery) + (Zn grade x Zn price x Zn recovery) + (Cu grade x Cu price x Cu recovery)/(Ag price x Ag recovery)
On November 19, 2025, the Company announced results from drill hole SMS25-12, extending the mineralization approximately 75 metres (m) below the current San Marcial Resource Area ("Resource Area") in the Plomosas Project. The step-out drilling intersected two silver mineralized zones with multiple intervals of high-grade silver, confirming the potential to expand the silver mineralization beyond the previous Resource Area boundary and remains open at depth.
Key highlights included:
- SMS25-12 intersected two distinct mineralized zones at shallow depth controlled by the intersection of the NW-SE trending San Marcial breccia with N-S trending faults.
- 5.0 m at 232 g/t Ag, from 332.6 m down hole, including
- 0.9 m at 956 g/t Ag,
- 0.2 m at 2,602 g/t Ag and
- 0.3 m at 1,061 g/t Ag
- 8.8 m at 121 g/t Ag including 2.0 m at 284 g/t Ag
- SMS25-12 indicates continuity of the hydrothermal breccia structure for at least 400 m below surface. This bodes well for future resource expansion with another step-out drilling program being planned for the first half of 2026.
- High-grade silver values hosted by volcano-sedimentary units are creating additional drilling targets at the footwall of chlorite-hematite rich breccias.
- Multiple sets of N-S and NW-SE oriented structures are common in the San Marcial Area creating prospective drill targets to guide the upcoming step-out drilling programs in 2026.
- SMS25-11 intersected wide silver mineralization, 25 m at 29 g/t Ag, suggesting that more attractive silver mineralized zones may be hosted laterally to the recently reported SMS25-09 wide, high-grade intercept of 75 m at 260 g/t Ag.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
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GR SILVER MINING LTD
OPERATIONAL HIGHLIGHTS
Property and Resource Highlights
During the nine-month period ended September 30, 2025, the Company continued to advance the review and modeling of exploration data related to the discoveries of wide high-grade silver mineralization hosted in hydrothermal breccias in the SE Extension of the San Marcial Property. This resulted in implementation of a step-out drilling program, targeting delineation of additional resources in the vicinity of the current MRE (Figure 3). The integration of all exploration data using modern software has been a key step in understanding silver mineralization controls in a new geological setting within the San Marcial Property, particularly as related to discovery drill hole SMS22-10, which intersected 101.6 m at 308 g/t Ag and, more recently, SMS25-09, which intersected 75 m at 293 g/t AgEq (75M at 260 g/t Ag). The recent success, that defined continuous wide, high-grade silver mineralization down-dip and along strike, provided key information to support 2025 step-out drilling and drilling planned for 2026.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Figure 3 – General View of the San Marcial Area, including the Step Out Drilling Targets
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
The step-out drilling has concentrated in three areas where wide hydrothermal breccias hosting silver predominant mineralization has been successfully intersected by shallow drill holes. The Company deployed two third-party contract drill rigs and one owner-operated drill rig.
The step-out drilling program has completed the following objectives through September 2025:
- Definition of down dip and down plunge continuity of wide silver mineralization for at least 250 metres from initial discovery hole SMS22-10 (Figure 4).
- Confirmation of presence of boiling textures in SMS25-09, suggesting that San Marcial hosts a well preserved low-intermediate sulfidation epithermal system with potential for continuity laterally and at depth, opening up potential for future resource growth with future drilling programs.
- Confirmation of presence of attractive silver mineralization on the edge of the regional chargeability anomaly (Figure 5), with indications of an extensive footprint and good exploration potential for new discoveries.
Figure 4 – Longitudinal Section – 2025 Step-Out Drilling Results, San Marcial Area
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Figure 5 – Cross Section Illustrating Continuity of Silver Mineralization from Discovery Hole SMS 22-10 to with SMS 25-09.
Table 1 – Summary Activities Step-Out Drilling Program at San Marcial Property (July-September)
| Activity | Results | Notes |
|---|---|---|
| Step-Out Drilling | 2,245 metres drilled | 5 holes completed |
| Drill hole Samples Submitted for Assaying | 3,511 samples assayed |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Table 2 – Summary Activities BSTM Plomosas Property (July – September)
| Activity | Data Collected | Notes |
|---|---|---|
| BSTM (Phase I) Underground Channel Sampling | 21 initial channel and chip samples collected and assayed to review silver-gold-lead-zinc grades. Use data to assist in the definition of upcoming metallurgical test work and Phase II sampling. | Define 21 readily accessible and previously developed sites in the underground mine for potential plant feed for the BSTM. |
| Geological Mapping | Review and field mapping of new areas with surface or shallow underground exposure of silver mineralized, hydrothermal breccias in the vicinity of the current 2023 NI 43-101 resource. | Use geological knowledge based on historical 3D data modelling to explore for silver predominant mineralization in wide mineralized zones at surface or at shallow-depth. |
| Underground Samples | 292 samples collected and assayed. | Supporting engineering studies for BSTM. |
The Company has integrated multi-disciplinary data using modern processing tools and 3D modelling. This exercise has refined the delineation of mineralization controls that assist in the planning of future step-out drilling programs. A new geological model, presenting the key geological relationship between porphyry style intrusive and wide, high-grade silver mineralized hydrothermal breccias, has also been developed. The areas currently prioritized for on-going step-out and resource expansion drilling (shown in Figure 3) are located along major regional structures where silver predominant mineralization commonly occurs in high porosity volcanoclastic units crosscut by NW-SE and N-S oriented structures.
New drill hole targeting has been influenced by the definition of a 2 km-long chargeability anomaly (Figure 6) during the Company’s extensive IP ground survey. The current MRE sits on the NW edge of the anomaly, with indications that 80% of the anomaly remains untested. The focus of the upcoming step-out drilling is to expand silver resources at the San Marcial Property using the Company’s better understanding of silver mineralization controls and their continuity down-plunge, along strike, and on the edges of the anomaly.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Figure 6 – Chargeability Anomaly in the San Marcial Property, a Key Exploration Target
The new geological map (Figure 7), illustrating the location of drill holes completed in Q3/2025, represents improved understanding gained through 3D data modelling of recent drill hole discoveries. It also highlights the exploration potential of the San Marcial Property on the edges of the chargeability anomaly, supporting potential resource expansion.
Recent discoveries from the step-out drilling program, including mineralized epithermal stockwork systems with gold mineralization provides an important proof of concept in extending the San Marcial resource mineralization. The presence of wide high-grade silver mineralization, associated with large intrusive units (diorites-granodiorites) and the presence of gold mineralization in the vicinity of the MRE, were also defined.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Figure 7 – New Geological Map and Exploration Targets, San Marcial Resource Area and New SE Extension Drilling Targets
Figure 8: Geological Section A-B, SE Discovery Area - delineation of a wide, mineralized silver zone
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
On July 8, 2025, the Company released the results of the Phase I BSTM chip and channel sampling program, indicating the potential to delineate higher-grade precious and base metal zones at 21 unmined sites in the historical Plomosas underground mine. Table 3 and Figure 9 illustrate the assay results from samples collected in the 21 site locations.
Table 3 – Summary Phase I BSTM Sampling Historical Plomosas Underground Mine
| Sample Type | Sample ID | Underground Level | Sample Length(m) | Ag Eq* g/t | Ag g/t | Au g/t | Pb % | Zn % | Cu % | Rocktype |
|---|---|---|---|---|---|---|---|---|---|---|
| Chip Mine Face Sample | 80458 | 815 | 877 | 127 | 2.07 | 1.0 | 2.7 | 2.9 | Stockwork - Veins | |
| 80489 | 825 | 211 | 63 | 0.04 | 1.6 | 1.9 | 0.1 | Polymetallic Veins | ||
| 80494 | 862 | 910 | 90 | 0.99 | 11.5 | 8.5 | 0.1 | Polymetallic Hydrothermal Breccia | ||
| 80468 | 883 | 2,423 | 675 | 0.54 | 46.9 | 4.5 | 0.1 | Polymetallic Hydrothermal Breccia | ||
| 80478 | 975 | 370 | 308 | 0.06 | 0.4 | 0.7 | 0.1 | Polymetallic Hydrothermal Breccia | ||
| 80460 | 975 | 365 | 297 | 0.09 | 0.4 | 0.7 | 0.1 | Polymetallic Veins | ||
| 80491 | 975 | 805 | 50 | 0.69 | 12.4 | 5.9 | 0.4 | Polymetallic Veins | ||
| 80474 | 1000 | 822 | 71 | 1.13 | 13.4 | 4.1 | 0.3 | Stockwork - Veins | ||
| 80466 | 1000 | 587 | 36 | 0.48 | 2.1 | 6.9 | 1.1 | Polymetallic Hydrothermal Breccia | ||
| 80479 | 1000 | 170 | 51 | 0.02 | 1.8 | 1.1 | 0.1 | Polymetallic Hydrothermal Breccia - Massive Sulphide | ||
| 80472 | 1000 | 1,000 | 174 | 1.52 | 10.5 | 7.7 | 0.3 | Stockwork - Veins | ||
| Channel Mine Face Sample | 80498 | 833 | 0.8 | 2,019 | 137 | 5.74 | 16.7 | 18.2 | 0.5 | Polymetallic Hydrothermal Breccia - Massive Sulphide |
| 80499 | 833 | 1 | 909 | 71 | 2.32 | 6.7 | 8.8 | 0.3 | Polymetallic Hydrothermal Breccia - Massive Sulphide | |
| 80500 | 833 | 0.75 | 386 | 34 | 0.09 | 8.1 | 1.9 | 0.0 | Polymetallic Hydrothermal Breccia | |
| 80503 | 862 | 1.2 | 1,870 | 96 | 0.54 | 29.8 | 16.8 | 0.6 | Polymetallic Veins | |
| 80504 | 950 | 0.8 | 1,192 | 28 | 0.18 | 29.5 | 5.0 | 0.0 | Polymetallic Veins | |
| 80505 | 950 | 0.6 | 15 | 8 | 0.01 | 0.0 | 0.1 | 0.0 | Polymetallic Hydrothermal Breccia | |
| 80507 | 950 | 0.9 | 64 | 11 | 0.16 | 0.1 | 0.6 | 0.1 | Polymetallic Veins | |
| 80508 | 950 | 0.6 | 3,993 | 310 | 15.20 | 26.2 | 10.2 | 7.2 | Polymetallic Hydrothermal Breccia - Massive Sulphide | |
| 80509 | 1000 | 1 | 421 | 68 | 0.55 | 2.5 | 5.1 | 0.1 | Polymetallic Hydrothermal Breccia | |
| 80512 | 1000 | 1 | 899 | 864 | 0.07 | 0.1 | 0.2 | 0.1 | Stockwork - Veins |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
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GR SILVER
MINING LTD
Figure 9 – Location of 21 Underground Sampling Sites, Phase I BSTM at Historical Plomasas Underground Mine
Plomasas Project NI 43-101 Mineral Resource Estimate
On March 20, 2023, the Company released details of its Plomasas Project NI 43-101 Mineral Resource Estimate, updating resources for the San Marcial, Plomasas Mine and San Juan-La Colorada Areas. On May 3, 2023, the Company filed on SEDAR an independent technical report ("the Report") prepared in accordance with National Instrument 43-101 – Standards of Disclosure of Mineral Projects ("NI 43-101") by Dr. Gilles Arseneau, P.Geo. of ARSENEAU Consulting Services Inc ("ACS"), supporting the updated resource estimate for the Plomasas Project, previously reported in the Company's news release dated March 20, 2023. This Report was filed in accordance with Section 4.2, Sub Section (5)(b) reconciling differences in the silver equivalent ("AgEq") estimation related to the San Marcial Area.
The combined Mineral Resource Estimate consisted of 85 Moz AgEq (Indicated) and 49 Moz AgEq (Inferred). Details of the combined Plomasas Project Mineral Resource Estimate are shown in Table 4, and the Mineral Resource Estimate is broken down by area in Table 5. Parameters for the estimate are shown in Table 6. The combined Mineral Resource Estimate was unaffected by the disposition of Marlin Gold Mining Ltd ("Marlin") in 2024.
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Table 4: Plomosas Project, Mineral Resource Statement, ACS March 15, 2023 by Resource Category
| Mineral Resource Class | Type | Tonnage (Mt) | Average Grade | Contained Metal | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | Cu (%) | AgEq (g/t) | Ag (Moz) | Au (Koz) | Pb (Kt) | Zn (Kt) | Cu (Kt) | AgEq (Moz) | |||
| Indicated | OP | 11 | 138 | 0.07 | 0.3 | 0.4 | 0.01 | 169 | 47 | 22.9 | 31 | 43 | 1 | 58 |
| Inferred | OP | 3 | 105 | 0.13 | 0.4 | 0.5 | 0.02 | 152 | 9 | 10.8 | 11 | 13 | 1 | 13 |
| Indicated | UG | 4 | 62 | 0.48 | 0.8 | 1.2 | 0.07 | 204 | 8 | 61.6 | 33 | 47 | 3 | 26 |
| Inferred | UG | 6 | 66 | 0.49 | 0.8 | 1.2 | 0.04 | 180 | 13 | 97.4 | 53 | 78 | 2 | 36 |
| Total Indicated | 15 | 117 | 0.18 | 0.4 | 0.6 | 0.03 | 179 | 55 | 84.5 | 64 | 90 | 4 | 85 | |
| Total Inferred | 9 | 78 | 0.38 | 0.7 | 1.0 | 0.03 | 171 | 22 | 108.2 | 64 | 91 | 3 | 49 |
Table 5: Plomosas Project, Mineral Resource Statement, ACS March 15, 2023 by Area
| Area | Mineral Resource Class | Type | Tonnes (Mt) | Average Grade | Contained Metal | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | Cu (%) | AgEq (g/t) | Ag (Moz) | Au (Koz) | Pb (Kt) | Zn (Kt) | Cu (Kt) | AgEq (Moz) | ||||
| San Marcial | Indicated | OP | 9 | 146 | 0.04 | 0.2 | 0.3 | 0 | 161 | 42 | 10.2 | 16 | 28 | 0 | 47 |
| Inferred | OP | 2 | 127 | 0.03 | 0.1 | 0.2 | 0 | 136 | 6 | 1.4 | 1 | 3 | 0 | 7 | |
| San Marcial | Indicated | UG | 1 | 176 | 0.06 | 0.3 | 0.6 | 0 | 206 | 4 | 1.5 | 2 | 4 | 0 | 5 |
| Inferred | UG | 1 | 164 | 0.03 | 0.2 | 0.4 | 0 | 182 | 8 | 1.6 | 3 | 5 | 0 | 9 | |
| Plomosas | Indicated | OP | 2 | 93 | 0.24 | 1.0 | 0.9 | 0.07 | 193 | 5 | 11.9 | 16 | 14 | 1 | 10 |
| Inferred | OP | 1 | 66 | 0.28 | 1.0 | 1.0 | 0.06 | 174 | 2 | 7.8 | 9 | 9 | 1 | 5 | |
| Plomosas | Indicated | UG | 3 | 35 | 0.57 | 0.9 | 1.3 | 0.08 | 204 | 4 | 58.0 | 30 | 42 | 3 | 21 |
| Inferred | UG | 2 | 38 | 0.57 | 0.9 | 1.1 | 0.06 | 175 | 3 | 39.4 | 20 | 23 | 1 | 12 | |
| San Juan/La Colorada | Indicated | OP | 0.1 | 161 | 0.29 | 0.3 | 0.6 | 0.02 | 211 | 0.4 | 0.8 | 0 | 1 | 0 | 1 |
| Inferred | OP | 0.2 | 103 | 0.24 | 0.5 | 0.8 | 0.02 | 159 | 0.7 | 1.6 | 1 | 2 | 0 | 1 | |
| Indicated | UG | 0.1 | 90 | 0.61 | 1.1 | 0.8 | 0.04 | 199 | 0.3 | 2.1 | 1 | 1 | 0 | 1 | |
| Inferred | UG | 2.6 | 34 | 0.69 | 1.2 | 1.9 | 0.04 | 182 | 2.8 | 56.4 | 31 | 49 | 1 | 15 | |
| Total Indicated | 15 | 117 | 0.18 | 0.4 | 0.6 | 0.03 | 179 | 55 | 84.5 | 64 | 90 | 4 | 85 | ||
| Total Inferred | 9 | 78 | 0.38 | 0.7 | 1.0 | 0.03 | 171 | 22 | 108.2 | 64 | 91 | 3 | 49 |
Numbers are rounded
- AgEq is calculated from the metal prices and recoveries using the equation AgEq = ((Au gradeAu priceAu Recovery) + (Ag gradeAg PriceAg Recovery) + (Pb gradePb PricePb Recovery) + (Cu gradeCu PriceCu Recovery) + (Zn gradeZn PriceZn Recovery)) / (Ag Price*Ag Recovery)
(1) Mineral Resources which are not Mineral Reserves, 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 is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration
(4) The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council
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MANAGEMENT DISCUSSION AND ANALYSIS
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GR SILVER MINING LTD
Table 6: Summary parameters adopted for resource estimation and mineral resource reporting - Plomosas Project (2023)
| Plomosas Project | ||||
|---|---|---|---|---|
| Metal Prices | Gold US$/oz | $1,750 | ||
| Silver US$/oz | $22.00 | |||
| Lead US$/lb | $1.10 | |||
| Zinc US$/lb | $1.30 | |||
| Copper US$/lb | $4.20 | |||
| Area | San Marcial | Plomosas Mine | San Juan | |
| Metallurgical Recoveries*** | Gold | 0 | 86% | 79% |
| Silver | 94% | 74% | 71% | |
| Lead | 59% | 69% | 58% | |
| Zinc | 80% | 75% | 47% | |
| Preliminary Cost Assumptions | ||||
| Mineral Resource Reporting*** | Open Pit ("OP") | 30 US$/t | 30 US$/t | 30 US$/t |
| Underground ("UG") | 60 US$/t | 60 US$/t | 60 US$/t |
*** Based on preliminary metallurgical test work completed in 2021 with samples from both areas investigating potential production of precious metal-rich concentrate
*** Preliminary cost assumptions adopted in the Whittle assessment and MSO are based on similar type deposits in Mexico where underground and open pit operations are in progress for a throughput capacity of 1,000 tpd
The Resource Estimate filed on May 3, 2023, was completed by ACS and Mr. S. T. Crowie (Sr. Metallurgist with JDS Energy & Mining Inc.), both of Vancouver, British Columbia, Canada, and integrates resources for the San Marcial, Plomosas Mine and San Juan-La Colorada Areas within the Plomosas Project.
A total of 70 GR Silver drill holes (10,500 metres) were added to the 52 holes used in the previous resource estimate, totalling 122 holes (~19,000 metres) for the San Marcial Area including the SE Discovery Area. At the Plomosas Mine Area, a total of 223 drill holes (16,380 metres) were drilled in specific areas of the existing underground historical mine as part of the infill drilling program. A total of 424 drill holes (60,020 metres) comprises the Plomosas Mine Area database supporting the Resource Estimate. The Company has been successful with expansion of resources since acquisition of the San Marcial and Plomosas Areas (Figure 10).
The Plomosas Project Resource Estimate adopts the key parameter of having a reasonable prospect of economic extraction, utilizing a combination of open pit and underground assumptions. Capping was applied to the original assay values prior to compositing in the mineral resource estimation process.
Highlights of the Resource Estimate (Table 4) including comparison to the previous mineral resource estimates¹ are:
- 72% increase in indicated mineral resources from 32 Moz to 55 Moz Ag
- 21% increase in inferred mineral resources from 18.6 Moz to 22.5 Moz Ag
- 83% increase in indicated mineral resources from 46.4 Moz to 85 Moz AgEq
- 48% increase in inferred mineral resources from 33.0 Moz to 49 Moz AgEq
San Marcial Area
- Indicated mineral resources of 10 Mt at 166 g/t AgEq
- Inferred mineral resources of 3 Mt at 151 g/t AgEq
- 88% of the value of the San Marcial Resource Estimate is comprised of silver
September 30, 2025 Management Discussion and Analysis
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MANAGEMENT DISCUSSION AND ANALYSIS
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> San Marcial resources are potentially amenable to underground mine development with the opportunity for low-cost bulk mineable underground methods due to the wide geometry of the mineralized zone, and resource growth opportunity.
> True width of the modelled San Marcial mineralization averages 22 metres, while the SE Area discovery averages 53 metres in thickness.
Plomosas Mine Area
> 2022 infill drilling resulted in an increase of 137% in the indicated mineral resource tonnage
> 260% increase in indicated mineral resources from 9 Moz to 31 Moz AgEq and AgEq grade increased by 30% and 52%, respectively, in indicated and inferred mineral resources in relation to the previous resource estimate
> Ag ounces represent 20% of total indicated mineral resources at the Plomosas Mine Area
> Ag ounces represent 26% of total inferred mineral resources at the Plomosas Mine Area
> True width of modelled mineralization at the Plomosas Mine Area averages 20 metres, supporting potential for low-cost bulk mineable open pit and/or underground mining methods
> 46% of the value of the Resource Estimate at the Plomosas Mine Area is comprised of precious metals
Key Statistics
> GR Silver has successfully expanded resources at the Plomosas Project (Figure 8) at a low cost of exploration and acquisition (US$0.25/oz)
> Since previous resource estimates in 2019 and 2021, the Company has achieved an estimated exploration cost of US$0.23/oz AgEq discovered
> Indicated Ag ounces have increased 189% since the Company’s inception
> Inferred Ag ounces have increased 220% since the Company’s inception
> Indicated AgEq ounces have increased 236% since the Company’s inception
> Inferred AgEq ounces have increased 408% since the Company’s inception
> The proportion of total indicated resources (oz Ag), now represents 63% of total resources at the Plomosas Project (Tables 4 and 5).
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Figure 10: Resource Growth at the Plomasas Project
GR Silver has been actively and efficiently drilling the Plomasas Project. GR Silver owned and third-party drilling contractors are sourced as needed. Figure 11 illustrates the cumulative metres of drilling already completed by GR Silver in the Plomasas Project.
GR Silver carried out drilling programs on the Plomasas Project from 2019 to 2022, with additional stepout drilling in 2023 and 2025 not included in the MRE. GR Silver’s own rigs, used during the latter stages of this period, were operated by contract and GR Silver employees. GR Silver also contracted third-party drilling companies that drilled the Plomasas and San Marcial Properties during that period. GR Silver also re-drilled some of the IMMSA historical holes replacing a total of 133 historical holes from the database in the Plomasas Mine Area and it also removed 32 IMMSA historical drill holes from the San Juan-La Colorada Area database.
Since first drilling by GR Silver in 2019, the Company has completed 513 drill holes on the Plomasas Project, for a total of approximately 51,500 metres (Figure 11). Of this total, 121 holes were drilled on the San Marcial Property for a total of approximately 15,500 metres. At the Plomasas Mine and immediate surrounds, the Company has completed 283 holes for a total of approximately 25,000 metres. At San Juan-La Colorada, up until the end of Q1/2023, GR Silver had drilled 60 holes for a total of approximately 5,285 metres. A total of 58 holes have been drilled on other exploration targets within GR Silver’s Rosario Mining District, up until the end of 2022, for a total of approximately 5,250 metres.
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MANAGEMENT DISCUSSION AND ANALYSIS
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Figure 11: Annual Drilling Programs Completed at the Plomasas Project by GR Silver Mining Ltd.
PLOMOSAS PROJECT
History and Background
GR Silver has, over several years, assembled a portfolio of mining concessions, which are wholly owned but subject to various royalties, in the Rosario Mining District, Sinaloa State, Mexico. The key properties which comprise the Plomasas Project, cover 78 square kilometres, encompass a past producing mine and two camps, and feature excellent road access and power to multiple locations. Plomasas Project concessions and their applicable royalties are detailed in Tables 7 and 12, respectively.
From 1976 to 2000, IMMSA drilled 485 holes totalling 85,989 m in the Plomasas Project. From these, 221 holes totalling 42,607 m were drilled in the immediate area of the Plomasas Mine Area – 37,240 m from surface and 5,367 m from underground platforms. There were 166 holes drilled at the San Juan-La Colorada Area totalling 26,990 m. 98 drill holes were completed by IMMSA in other regional exploration targets. Gold-Ore carried out drilling from 2000 to 2002, drilling six holes in 2000 for 602 m and 17 holes in 2002 totalling 2,528 m targeting the San Marcial Area in the NW portion of the Mineral Resource. Aurcana drilled seven holes in the Plomasas Mine Area between 2007 and 2008; three from underground and four from surface platforms, for a total of 1,872 m. Silvermex drilled between 2008 and 2010, completing 29 holes for 5,826 m targeted at the NW portion of the San Marcial mineralization.
In March 2020, GR Silver completed the acquisition of 100% of Minera La Rastra S.A. de C.V. ("MLR"), the company holding the Plomasas Property and other concessions, from First Majestic Silver Corp. The Plomasas Property includes the past-producing Plomasas Mine - a shallow underground mine from which Grupo Mexico historically produced 67,600 t of lead concentrate and 31,400 t of zinc concentrate, with silver - gold credits, between 1986 and 2000. This mine was closed in 2001 due to then prevailing low
September 30, 2025 Management Discussion and Analysis
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commodity prices. As a result of the mine's continuous care and maintenance since that time, 7.4 km of underground tunnels and developments have remained in good condition, providing immediate access for exploration and potential future mining activities. MLR also owns 349 hectares of land covering most of the underground mine and vicinity at the Plomosas Mine. As the Plomosas Mine is a past producer, valid surface rights agreements, as well as some other essential permits, remain in place for current and future use by the Company.
Table 7: Plomosas Project (San Marcial and Plomosas Properties)
| AREA | No. | MINING CONCESSIONS | OWNERSHIP^{a} | TITLE | SURFACE AREA (ha) |
|---|---|---|---|---|---|
| San Marcial Property | 1 | Mina San Marcial | Minera San Marcial | 180998 | 119.0000 |
| 2 | Ampliacion San Marcial | Minera San Marcial | 211650 | 1131.0000 | |
| Plomosas Property | 3 | Plomosas | Minera La Rastra | 168698 | 12.0000 |
| 4 | Segunda Ampl. de Plomosas | Minera La Rastra | 168699 | 100.0000 | |
| 5 | Continuacion de Plomosas | Minera La Rastra | 168700 | 12.0000 | |
| 6 | La Rastra 2 | Minera La Rastra | 183443 | 25.4275 | |
| 7 | San Juan | Minera La Rastra | 188174 | 24.5725 | |
| 8 | La Estrella | Minera La Rastra | 202188 | 261.6800 | |
| 9 | Plomosas 3 | Minera La Rastra | 209251 | 23.2700 | |
| 10 | Plomosas 2 | Minera La Rastra | 210152 | 83.5000 | |
| 11 | La Rastra | Minera La Rastra | 214304 | 5396.0027 | |
| 12 | Plomosas 4 | Minera La Rastra | 225024 | 420.9633 | |
| 13 | Los Arcos | Minera La Rastra | 226222 | 214.1300 |
In addition, the Plomosas Property includes mineralization at the San Juan-La Colorada Area, located approximately three kilometres west of the Plomosas Mine, and near the eastern margin of a small, third-party held concession currently being mined for gold. Artisanal workings are present, as well as shallow underground workings developed on a breccia, known as the San Juan Breccia.
On May 6, 2021, following a successful three-year period of exploration and resource expansion under an option agreement, GR Silver acquired Compañía Minera San Marcial S.A. de C.V., which owns the San Marcial Property.
The Company has now integrated the historical databases for the Plomosas Project, obtained through the aforementioned acquisitions, into a single regional database. The Company's Plomosas Project lies in one of the most prolific geological settings for the discovery of high-grade silver-gold epithermal mineralized systems in Mexico, along the western edge of the Sierra Madre Occidental. A number of world class deposits have been discovered in this setting, including the San Dimas deposit, just 125 kilometres north of the Plomosas Project, and the El Rosario Mine which historically produced millions of ounces of precious metals.
Following successful drilling in 2022, the Company completed an updated mineral resource estimate on March 20, 2023, covering the San Marcial, Plomosas Mine and San Juan-La Colorada Areas. The Report was filed on May 3, 2023, including updates on the estimation of AgEq for the San Marcial Area.
The Company announced on July 17, 2024, that a private, arm's-length Canadian company active in Mexico acquired from the Company 100% of the issued and outstanding shares of Marlin and its Oro Gold
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subsidiary. GR Silver retains a 0.5% NSR Royalty on the Concessions owned by Oro Gold and a 10-year first right of refusal on any disposition of the Concessions by the private company.
Mining History
Mining at the historical Plomasas Mine took place from 1986 to 2000. A total of 2.5 Mt of ore were processed through a 600 tpd crushing-milling flotation circuit (Table 7). During the 14 years of operation, lead and zinc concentrates were the main products, with reported high-grade silver and gold credits. The historical reports indicate annual average grades for each commodity within the following ranges: zinc (1.85% to 2.66%), lead (1.19% to 3.37%), silver (79 g/t to 338 g/t) and gold (0.76 g/t to 1.74 g/t). The room and pillar underground operation selectively mined to only 260 metres depth of a polymetallic hydrothermal breccia hosted in a shallow-dipping regional fault. Extensive historical and current drilling data show additional continuity down dip and along strike as well as new mineralized zones on the footwall and hanging wall of the main zone.
Table 8: Plomasas Mine – Production History 1986-2000
| Plomasas Historic Production Table 1986-2000 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Historic Production. During mining operations, in the Plomasas–La Cruz mine, they extracted lead and zinc minerals with variable silver, gold and copper content, as well as lead and zinc concentrates as shown in the table below. | ||||||||||||||||
| Production Years | ||||||||||||||||
| Concept | Unit | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 |
| ORE MILLED | tspose | 95.133 | 164.974 | 164.239 | 147.611 | 194.279 | 202.976 | 193.729 | 188.227 | 172.983 | 178.282 | 185.026 | 189.611 | 180.884 | 187.471 | 94.381 |
| MILL FEED | ||||||||||||||||
| Au | g/t | 0 | 0 | 0 | 0 | 0 | 0 | 0.64 | 1.74 | 1.61 | 1.06 | 0.94 | 0.63 | 0.75 | 0.56 | 1.17 |
| Ag | g/t | 338 | 334 | 309 | 220 | 204 | 197 | 195 | 177 | 111 | 97 | 116.9 | 79.77 | 88.73 | 96.87 | 103 |
| Pb | % | 2.62 | 1.19 | 1.4 | 1.83 | 2.47 | 3.08 | 3.13 | 3.37 | 2.25 | 2.25 | 2.15 | 1.79 | 1.88 | 1.96 | 1.67 |
| Cu | % | 0.18 | 0.11 | 0.13 | 0 | 0.12 | 0 | 0.16 | 0.22 | 0.15 | 0.13 | 0.11 | 0.16 | 0.16 | 0.13 | 0.19 |
| Zn | % | 1.58 | 0.97 | 1 | 1.22 | 1.4 | 1.83 | 2.66 | 2.28 | 2.28 | 2.17 | 1.85 | 2.02 | 2.42 | 2.08 | 2.57 |
| METAL CONTENT | ||||||||||||||||
| Au | g | 0 | 0 | 0 | 0 | 0 | 0 | 124 | 327 | 279 | 189 | 174 | 120 | 135 | 105 | 110 |
| Ag | g | 32.155 | 55.101 | 50.750 | 32.474 | 39.633 | 39.986 | 37.777 | 33.316 | 19.201 | 17.293 | 21.608 | 15.130 | 16.050 | 18.161 | 9.674 |
| Pb | t | 2.492 | 1.963 | 2.299 | 2.701 | 4.799 | 6.252 | 6.064 | 6.343 | 4.359 | 4.011 | 3.976 | 3.404 | 3.399 | 3.670 | 1.572 |
| Cu | t | 171 | 181 | 214 | - | 233 | - | 310 | 414 | 259 | 232 | 205 | 312 | 291 | 247 | 177 |
| Zn | t | 1.503 | 1.600 | 1.642 | 1.801 | 2.720 | 3.714 | 4.262 | 5.007 | 3.944 | 3.869 | 3.425 | 3.836 | 4.385 | 3.907 | 2.429 |
| RECOVERY | ||||||||||||||||
| Au in Pb, Cu, Zn Concentrate | 0-0-0 | 0-0-0 | 0-0-0 | 0-0-0 | 0-0-0 | 0-0-0 | 48-0-8 | 0 | 48-0-9 | 36-0-14 | 40-0-12 | 36-0-15 | 40-0-18 | 55-0-44 | 0 | |
| Ag in Pb, Cu, Zn Concentrate | 32-0-0 | 67-0-0 | 40-0-0 | 61-0-0 | 67-0-0 | 69-0-0 | 56-0-9 | 56-0-3 | 46-0-12 | 40-0-16 | 40-0-32 | 34-0-19 | 38-0-29 | 49-0-18 | 0 | |
| Pb in Pb Concentrate | 49.5 | 62 | 34.5 | 70 | 79 | 67 | 58 | 59 | 56 | 54 | 56 | 57 | 58 | 64 | 0 | |
| Cu in Cu Concentrate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Zn in Zn Concentrate | 0 | 0 | 0 | 0 | 0 | 0 | 21 | 15 | 36 | 44 | 50 | 51 | 51 | 52 | 0 | |
| CONCENTRATE PRODUCTION | t | |||||||||||||||
| Pb | 2.656 | 3.269 | 4.308 | 4.995 | 8.886 | 9.865 | 6.915 | 2.407 | 3.983 | 3.484 | 3.650 | 3.371 | 3.280 | 4.138 | 2.240 | |
| Bulk | 381 | 56 | 56 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Zn | 0 | 0 | 0 | 0 | 0 | 0 | 2.190 | 1.629 | 3.155 | 3.884 | 4.116 | 4.566 | 5.053 | 4.300 | 2.466 |
Numbers are rounded
*Source: Internal IMMSA reports
The drilling data also indicate high-grade silver and gold mineralization in unmined hanging wall and footwall zones around the mineralized hydrothermal breccia. The Company confirmed the multicommodity nature of the mineralization and high-grade silver and gold zones through its re-examination of the extensive drilling database, its re-logging and re-sampling work, and its delineation of new mineralized zones outside of the historically mined area as a result of its 15,944-metre surface and underground drilling program during 2020 and early 2021 (see News Release dated July 7, 2021).
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Geology
The Plomosas Project is located in the southwestern edge of the Sierra Madre Occidental (SMO), which formed as the result of Cretaceous–Cenozoic magmatic and tectonic episodes related to the subduction of the Farallon Plate beneath North America, and to the opening of the Gulf of California. The local geology at the Project can be subdivided into two distinct underlying rock types: the first distinct rock type comprises bimodal volcanic rock units, dominated by andesitic pyroclastic units, tuffs, and extrusive flows. The bimodal volcanic rock units are underlain by a basal volcaniclastic sedimentary rock unit that is possibly of older Jurassic age.
Mineralization on the Plomosas Property can be described as intermediate- to low-sulphidation epithermal, which occurs at the San Marcial Area, the Plomosas Mine Area and the San Juan–La Colorada Area. Several episodes of mineralization have been identified and are intricately connected to the tectonic and structural evolution of the SMO during the Tertiary.
The San Marcial Property displays indications of a low-sulphidation epithermal system, with four multiphase mineralizing events, as identified by minerographic studies, rich in silver, lead, and zinc. In the San Marcial Property, a number of mineralization styles have been identified, including three main breccia types: a hematitic hydrothermal breccia—hematite + calcite + quartz; a siliceous hydrothermal breccia—chlorite + quartz + pyrite; and a tectonic breccia.
The San Marcial breccia-hosted deposit is strongly associated with a NW–SE-oriented structural trend, and possibly affected by other crosscutting structural features. While the San Marcial deposit is best considered a silver deposit, minor zinc and lead are closely associated with silver.
The SE Area discovery at the San Marcial Property, drill hole SMS22-10, confirmed the extension of breccia mineralization along the NW–SE target contact zone, approximately 250 metres to the southeast of the original resource. The SE Area hosts hydrothermal breccia-style mineralization. The host rocks differ from those hosting silver mineralization on the NW portion of the San Marcial Mineral Resource, consisting of a wide chlorite-rich volcano-sedimentary unit which consists of brecciation and stockworks more than 100 metres thick in places and flooded by hematite-calcite-quartz. The mineralization is silver-rich with lesser Pb–Zn–Au. The Company is investigating the potential continuity of this mineralization further to the southeast along the target contact.
At the Plomosas Mine Area, a hydrothermal polymetallic breccia mineralization (Pb–Zn–Au–Ag) mainly occurs as massive to close-spaced disseminated sulphides, with veins, stockworks, and sulphide stringers hosted in brecciated sequences of rhyolite and andesite tuffs. The breccia is hosted in a mainly N–S-oriented shallow-angle fault, dipping west. Quartz and calcite are the main gangue minerals in the breccia. Sulphide mineral assemblages include galena, sphalerite, pyrite, chalcopyrite, and bornite. Silver-rich minerals such as acanthite and argentite are common. Late-stage Ag–Au-rich epithermal quartz veining in high-angle faults is commonly observed overprinting Pb–Zn–Ag mineralization in the hydrothermal breccias and enriching the mineral body with Ag–Au or defining precious metals-only mineralized zones.
At the San Juan–La Colorada Areas in the Plomosas Property, a large intermediate- to low-sulphidation epithermal gold–silver system is hosted predominantly by high-angle faults, whereas the Pb–Zn–Ag mineralization is preferentially in NW–SE-oriented, east-dipping, shallow-angle faults.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Exploration Year ended 2024
Exploration activities in the year ended December 31, 2024, focused on data re-processing, geological and data integration – modelling using existing data, and permitting activities, to support exploration of the new drill targets in the vicinity of the San Marcial Resource.
Resource
The Mineral Resource Estimate ("MRE") filed on May 3, 2023, represents GR Silver's second MRE for the San Marcial, Plomasas Mine, and San Juan-La Colorada Areas, within the Plomasas Project. The MRE incorporates GR Silver drilling to January 4, 2023, on San Marcial, January 20, 2023 on Plomasas Mine and March 3, 2023 on San Juan, and previous drilling completed by First Majestic, Silvermex, Gold-Ore, Aurcana, and IMMSA.
The San Marcial Area MRE is based on 122 drill holes totaling 19,451 m. The Plomasas Mine Area MRE is based on 60,349 m of drilling from 432 validated drill holes. In all, 133 historical IMMSA drill holes—those which were only partially sampled—were removed from the database because nearby recent drilling indicated that the mineralized zone was wider than depicted by the old IMMSA partially sampled holes. The San Juan-La Colorada Area MRE includes 54,823 m of drilling from 294 holes. Other areas have historical drill holes that have not been incorporated in this update of the NI 43-101 MRE for the Plomasas Project.
The reasonable prospect of eventual extraction was defined by generating a Whittle-optimized pit shell based on the metal prices and recoveries given in Table 9, and assuming a total open pit mining cost and processing cost of US$30/t supported by data collected from similar deposits and operations in Sinaloa State. Underground resources were restricted to shapes defined by stope optimizer software assuming combined underground mining and processing costs of US$60/t supported by data collected from similar deposits and operations in Sinaloa State.
Table 9: Recoveries for the San Marcial, Plomasas Mine, and San Juan-La Colorada Areas
| Metal | Price (US$) | Recoveries (%) | ||
|---|---|---|---|---|
| San Marcial | Plomasas | San Juan-La Colorada | ||
| Copper | 4.20/lb | 80 | 80 | 26 |
| Lead | 1.10/lb | 59 | 69 | 58 |
| Zinc | 1.30/lb | 80 | 75 | 47 |
| Gold | 1,750/oz | 80 | 86 | 79 |
| Silver | 22.00/oz | 94 | 74 | 71 |
Notes: ${}^{a}$ Metal prices are derived from Energy & Metals Consensus Forecasts long-term pricing (December 2022); oz = troy ounce.
The independent QP estimates that the Plomasas Project contains combined Indicated Mineral Resources totalling 15.0 Mt grading 0.18 g/t Au, 117 g/t Ag, 0.4% Pb, and 0.6% Zn; and 9.0 Mt of Inferred Mineral Resources grading 0.38 g/t Au, 78 g/t Ag, 0.7% Pb, and 1.0% Zn.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
^{}[]
GR SILVER MINING LTD
OUTLOOK
Our Primary Objective for 2025: Expansion of the Mineralization Footprint at San Marcial Property
Management recognizes that the Company’s greatest value driver is the expansion of mineralization at the highly prospective San Marcial Property. Important knowledge has been gained through the discovery of a new geological setting in the form of wide, silver predominant mineralization hosted in hydrothermal breccias. GR Silver has conducted an initial 2,245-metre step-out drilling program to delineate new mineralized zones and will undertake additional drilling in the upcoming year to progress potential resource expansion in 2026.
The Company’s drive for mineral resource expansion has been greatly aided by data modelling studies in conjunction with the globally regarded Centre for Ore Deposit and Earth Sciences (CODES) at the University of Tasmania. The main objective of these modelling studies is to fully understand silver mineralization controls and learn how to apply results to optimize upcoming drilling and exploration programs. This partnership with Dr. Paula Montoya unlocks key information to assist the Company to define new mineralized zones that collectively may be comparable to other major silver districts in the Sierra Madre Occidental. Importantly, fine-tuning of the geological model at San Marcial has already yielded several high-priority targets for further drilling. Four of these targets were selected for step-out and exploration drilling (news release dated March 3, 2025) and tested during 2025.
The Company has continuously increased resources at the San Marcial Property since its acquisition. The Company believes the studies in progress, in particular with CODES, may result in the further expansion of the resource to the northwest and southeast, as well as in sub-parallel zones. Initial step-out drilling after the 2023 MRE continued to demonstrate wide, silver predominant mineralization at relatively shallow depths, extending the mineralized footprint as much as 500 m along strike to the southeast. We believe that follow up drilling to depth and down-plunge to the southeast is highly prospective at San Marcial.
The identification of the controls on mineralization at San Marcial resulted in the recognition of the presence of the wide mineralized SE Area Discovery zone at a shallow depth, despite not outcropping. Geological interpretation, lithogeochemical sampling, and geophysical modelling together with the analysis of key structural corridors provides a template for new exploration and drilling, recognizing that mineralization can be blind, i.e., not obvious at surface.
GR Silver has been engaged in securing the necessary permits for expanded drill programs on the San Marcial Property. On September 9, 2025, GR Silver received a key 5-year drill permit for the San Marcial Area authorizing additional step-out and exploration drilling in an extensive area surrounding the current NI 43-101 Resource Area. The five-year Informe Preventivo (“IP”) issued by the Secretaría de Medio Ambiente y Recursos Naturales (“SEMARNAT”), will allow for the drilling of step-out and exploration holes at 46 new drill sites in the San Marcial Area.
The 3,000-metre step-out drilling program planned for 2025 was designed using existing access roads in the target areas while the Company awaited approvals for a much larger drilling program. The 13-hole 2025 drilling program, targeting near surface, high-grade silver mineralization, has now been completed. Details of subsequent drilling campaigns will be provided as the programs are initiated.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
On July 8, 2025, the Company announced detailed sampling at the Plomasas Mine and reported high-grade silver results. The initial underground sample program at the historical Plomasas Underground Mine was designed around the following goals:
1- To understand and model the continuity of recently mapped high-grade silver zones, post completion of the NI 43-101 resource, in the Plomasas Mine.
2- To collect samples for additional metallurgical test work that will define key process parameters for implementation of a BSTM Program at the Plomasas Mine (Table 3).
3- To create a more detailed database of underground samples to assist in reconciliation between the current NI 43-101 resource model and future areas targeted to be part of a BSTM.
Surface exploration efforts continue with the support of data modelling and the assessment of mineral prospectivity along the major regional structures in the Plomasas Project. Initial reconnaissance of silver mineralized hydrothermal breccias outcropping in the northwest and southwest areas at the San Marcial Property, on the edge of a large geophysical anomaly (chargeability) has encouraged the Company to continue surface exploration. To date, only 20% of the footprint defined by coincident geophysical and geochemical anomalies (Figure 6) and highlighted by the drill hole SMS22-10 intercept that cut 101 m averaging 308 g/t Ag (including 0.8 m grading 7,139 g/t Ag) at shallow depth, has been tested.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
OTHER PROJECTS
GR Silver subsidiaries hold title to the following additional mining concessions (Table 10) and mining concession applications (Table 11) in the Rosario Mining District. Applicable royalties are noted in Table 12.
The Company's non-core concessions remain available for partnership or outright purchase and outreach has been made to encourage potential monetization.
Table 10: Other Mining Concessions
| No. | MINING CONCESSIONS | TITLE | AURFACE AREA (ha) |
|---|---|---|---|
| GOLDPLAY DE MEXICO, S.A. DE C.V. | |||
| 1 | Habal | 246381 | 1738.99 |
| 2 | San Pablo | 236078 | 80.00 |
| 3 | San Pablo 2 | 226963 | 220.00 |
| 4 | Las Dos Chiquitas | 232406 | 278.16 |
| 5 | Baluarte 2 | 226962 | 50.00 |
| 6 | Habal Sur | 243620 | 1406.57 |
| 7 | Tigra Negra Fracc. II | 228755 | 2.70 |
| 8 | Tigra Negra Fracc. III | 228756 | 1.35 |
| 9 | Tigra Negra Fracc. IV | 228757 | 1.35 |
| 10 | Tigra Negra Fracc. V | 228758 | 1.35 |
| 11 | Placer II | 246149 | 11107.24 |
| 12 | Yauco | 246808 | 4518.99 |
| MINERA LA RASTRA, S.A. DE C.V. | |||
| 1 | Rosario 4 | 212656 | 239.78 |
| 2 | Rosario I | 221093 | 406.69 |
| 3 | Rosario II | 228255 | 736.18 |
| 4 | La Chispera | 213510 | 10.00 |
| 5 | La Chispera II | 225866 | 226.07 |
| 6 | Potrero No. 2 | 195916 | 221.00 |
| 7 | El Potrero | 203534 | 100.00 |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
^{}[]
GR SILVER
MINING LTD
Table 11: Other Mining Concession Applications
| No. | MINING CONCESSION APPLICATIONS | TITLE | AURFACE AREA (ha) |
|---|---|---|---|
| GOLDPLAY DE MEXICO, S.A. DE C.V. (Applications) | |||
| 1 | Indio Fracc. I | 59/7706 | 32.77 |
| 2 | Indio Fracc. II | 59/7706 | 0.38 |
| 3 | Indio Fracc. III | 59/7706 | 3.89 |
| 4 | La Union 2 Fracc. 1 | 95/13335 | 5549.91 |
| 5 | La Union 2 Fracc. 2 | 95/13335 | 18.86 |
ROYALTIES
A summary of royalties applicable to GR Silver’s mining concessions is included in the following Table 11.
TABLE 12: Royalties applicable to GR Silver concessions
| Name of Concession Owner | Concession & Royalty Details | Details of Buy-Back Rights |
|---|---|---|
| Minera La Rastra | Concessions: “Plomosas”, “Segunda Ampl. de Plomosas”, “Continuación de Plomosas”, “La Rastra 2”, “San Juan”, “Potrero No. 2”, “La Estrella”, “El Potrero”, “Plomosas 3”, “Plomosas 2”, “Rosario 4”, “La Chispera”, “La Rastra”, “Rosario I”, “Plomosas 4”, “La Chispera II”, “Los Arcos” and “Rosario II” |
Royalty: Monthly royalties are payable to Industrial Minera Mexico, S.A. de C.V., depending on the price of zinc (Zn), as indicated below:
(a) 3.5% when the price of Zn is equal or more than US$1.50 per lb;
(b) 3.0% when the price of Zn is equal or more than US$1.20 per lb;
(c) 2.5% when the price of Zn is equal or more than US$1.00 per lb; and
(d) 1.75% when the price of Zn is less than US$1.00 per lb | N/A |
| Minera La Rastra | Concessions: “Plomosas”, “Segunda Ampl. de Plomosas”, “Continuación de Plomosas”, “La Rastra 2”, “San Juan”; “Potrero No. 2”, “La Estrella”, “El Potrero”, “Plomosas 3”, “Plomosas 2”, “Rosario 4”, “La Chispera”, “La Rastra”, “Rosario I”, “Plomosas 4”, “La Chispera II”, “Los Arcos” and “Rosario II”
Royalty: 2.0% NSR royalty payable to Royalty & Streaming Mexico, S.A. de C.V. | Minera La Rastra has the one-time right at any time to buy back half of this royalty (i.e. 1%) for US$1,000,000 plus VAT |
| Minera San Marcial | Concessions: “Mina de San Marcial” and “Ampliación San Marcial”
Royalty: 3.0% NSR royalty payable to Met-Sin Industriales, S.A. de C.V. | Minera San Marcial has the right to buy back this royalty for US$600,000 plus VAT per 1%, which right can be exercised at any time and from time to time in whole or in part. |
| Minera San Marcial | Concessions: “Mina de San Marcial” and “Ampliación San Marcial”
Royalty: 0.75% NSR royalty is payable to EMX Royalty Corporation | Minera San Marcial has the right to buy back this royalty for CAD$1,250,000 plus VAT, which right can be exercised at any time |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
^{}[]
GR SILVER
MINING LTD
TABLE 12.1: Royalties applicable to GR Silver concessions (Non-Core Concessions)
| Name of Concession Owner | Concession & Royalty Details – Non-Core Concessions | Details of Buy-Back Rights |
|---|---|---|
| Goldplay de Mexico | Concessions: “Habal”, “San Pablo 2”, “Baluarte 2”, “Las Dos Chiquitas”, “San Pablo”, “Tigra Negra Fracc. II”, “Tigra Negra Fracc. III”, “Tigra Negra Fracc. IV” and “Tigra Negra Fracc. V” | |
| Royalty: 1.0% NSR royalty payable to Camargo. | Goldplay de Mexico has the right to buy back this royalty for US$1,000,000 plus VAT, which right can be exercised at any time. | |
| Goldplay de Mexico | Concessions: “Habal”, “San Pablo 2” and “Baluarte 2” | |
| Royalty: 0.5% NSR royalty payable to Erme Enriquez Minjarrez | Goldplay de Mexico has the right to buy back this royalty for US$1,000,000 plus VAT, which right can be exercised at any time. | |
| Goldplay de Mexico | Concessions: “Habal Sur”, “El Placer II” and “Yauco” | |
| Mining Concession Applications: “La Union 2 Fracc. 1” (File 95/13335) and “La Union 2 Fracc. 2” (File 95/13335) | ||
| Royalty: 1.0% NSR royalty payable to Sandstorm Gold Ltd. (“Sandstorm”) | N/A | |
| Goldplay de Mexico | Concessions: “El Habal”, “San Pablo 2”, “Baluarte 2”, “Las Dos Chiquitas” and “San Pablo” | |
| Royalty: Concessions are subject to an option agreement in which Sandstorm has the exclusive right to acquire a 1% NSR royalty at an exercise price of US$1,000,000 per 0.5% NSR. | N/A | |
| Goldplay de Mexico | Concessions: “Habal Sur”, “El Placer II” and “Yauco” | |
| Royalty: 1.0% NSR royalty payable to Oro Gold de Mexico | N/A | |
| Goldplay de Mexico | Mining Concession Applications: “Indio Fracc. I” (File 59/7706), “Indio Fracc. II” (File 59/7706), “Indio Fracc. III” (File 59/7706), “La Union 2 Fracc. 1” (File 95/13335) and “La Union 2 Fracc. 2” (File 95/13335) | |
| Royalty: 1.0% NSR royalty payable to Oro Gold de Mexico | N/A |
September 30, 2025 Management Discussion and Analysis
33 | Page
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
SELECTED FINANCIAL INFORMATION AND RESULTS OF OPERATIONS
The following table sets out selected financial information with respect to the Company's Interim Financial Statements for the three and nine-month periods ended September 30, 2025. The following should be read in conjunction with the Annual Financial Statements for the years ended December 31, 2024, and 2023.
| Summary of Operations | Three months ended | Nine months ended | ||
|---|---|---|---|---|
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |
| $ | $ | $ | $ | |
| Total expenses | (2,821,939) | (4,631,301) | (5,850,412) | (11,595,008) |
| Net income (loss) for the period | (2,822,682) | 25,735,963 | (5,858,949) | 20,624,150 |
| Income (loss) per share - basic | (0.01) | 0.08 | (0.02) | 0.07 |
| Income (loss) per share - diluted | (0.01) | 0.07 | (0.02) | 0.06 |
| Balance Sheet Summary | September 30, 2025 | December 31, 2024 | ||
| --- | --- | --- | ||
| $ | $ | |||
| Current assets | 12,778,888 | 1,406,503 | ||
| Non-current assets | 8,187,404 | 8,313,801 | ||
| Total assets | 20,966,292 | 9,720,304 | ||
| Current liabilities | 1,544,567 | 1,372,351 | ||
| Non-current liabilities | 241,270 | 526,120 | ||
| Total liabilities | 1,785,837 | 1,898,471 | ||
| Working capital | 11,234,321 | 34,152 |
During the nine-month period ended September 30, 2025, the Company had a net loss of $5,858,949 (September 30, 2024, net income of – $20,624,150). Total expenses decreased to $5,850,412 (September 30, 2024 - $11,595,008), a decrease of $5,744,596 or 50%. The decrease in total expenses for the nine-month period ended September 30, 2025, was primarily attributed to reduced expenditures in relation to the disposition of Marlin Gold Mining Ltd. ("Marlin") which closed July 16, 2024. During the nine months ended September 30, 2025, the Company recorded concession fees of $700,606 (September 30, 2024 - $7,806,650), a decrease of $7,106,044 or 91% due to the disposition of the La Trinidad project held by Marlin. The net income for the period ended September 30, 2024 was primarily related to a gain on the disposition of Marlin of $24,266,842 and the retirement of concession fees, which had become statute barred, of $6,496,684 offset by total expenses and other items.
The Company's operations for the nine-month period ended September 30, 2025, were focused on the continued exploration of the San Marcial Area of its Plomasas Project in Mexico. Exploration expenditures for the nine-month period ended September 30, 2025 were $2,310,012 (September 30, 2024 - $1,202,601). The Company's working capital at September 30, 2025, improved to $11,234,321 (December 31, 2024 - $34,152) due to equity financings completed during the period raising gross proceeds of $15,644,700 as well as from the exercise of warrants which raised $2,139,452.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
^{}[]
GR SILVER MINING LTD
Summary of significant Balance Sheet items for the period ended September 30, 2025
The primary factors affecting the changes to the balance sheet items were as follows:
- Cash increased to $12,390,227 (December 31, 2024 - $1,162,225), an increase of $11,227,972, due to equity financings completed which raised aggregate gross proceeds of $15,644,700 as well as $2,139,452 from the exercise of warrants.
- Raised gross proceeds of $2,139,452 from the exercise of warrants.
- Raised gross proceeds of $1,844,700 in a non-brokered private placement financing of 14,190,000 units at a price of $0.13 per unit.
- Raised gross proceeds of $13,800,000 in an underwritten private placement financing of 69,000,000 units at a price of $0.20 per unit.
- Incurred cash-based share issue costs of $1,235,118 in relation to private placements completed during the period.
- Cash of $5,299,041 was utilized in operating activities for operations and exploration activity.
- Value added taxes ("VAT") receivable increased to $485,093 (December 31, 2024 - $208,316) in relation to VAT incurred during the period in Mexico.
- Exploration and evaluation assets of $7,129,308 (December 31, 2024 - $7,424,819) decreased by $295,511 in relation to the change in estimates of the timing of reclamation obligations.
- Accounts payable and accrued liabilities decreased to $493,534 (December 31, 2024 - $631,496) a decrease of $137,962 or 22%.
- Mining concession fees payable increased to $1,051,033 (December 31, 2024 - $740,855) an increase of $310,178 which is related to the non-core Goldplay concessions that will not be further developed by the Company.
- Reclamation obligation of $241,270 (December 31, 2024 - $526,120) decreased by $284,850 due to the change in estimates of the timing of expected reclamation activities net of accretion expense for the period.
Discussion of results – Three-Month Period Ended September 30, 2025
The Company's net loss for the three-month period ended September 30, 2025, was $2,822,682 (September 30, 2024 – net income of $25,735,963). During the period the Company's total expenses were $2,821,939 (September 30, 2024 - $4,631,301). Significant fluctuations during the three-month period included the following:
The Company incurred concession fees of $375,121 (September 30, 2024 - $3,422,935). The reduction resulted from the Company's disposition of Marlin, and a corresponding reduction of concession fees related to the La Trinidad Project.
Consulting of $124,694 (September 30, 2024 - $22,560) related to fees for accounting, project investigation, and other operational services from independent contractors.
Depreciation of $36,417 (September 30, 2024 - $45,266) related to depreciation of the Company's equipment. The Company disposed of certain exploration equipment in the prior year therefore there was a corresponding decrease in depreciation.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Exploration expenditures were $1,362,523 (September 30, 2024 - $446,473) as per the table below:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| $ | $ | |
| Community relations | 40,124 | 222,247 |
| Consulting | 53,116 | - |
| Drilling | 849,727 | (915) |
| Engineering | 102,908 | - |
| Environmental / reclamation | 66,897 | 12,408 |
| Field | 93,267 | 48,425 |
| Geochemistry | 3,105 | 162,605 |
| Geological | 136,872 | 2,802 |
| Metallurgical | 16,507 | - |
| Topography | - | (1,099) |
| Total | 1,362,523 | 446,473 |
Exploration activities during the quarter focused on recommencement of drilling, with data re-processing, geological modelling, and data integration to support exploration of the new targets in the vicinity of the San Marcial discovery and resource.
Investor relations of $165,235 (September 30, 2024 - $35,302) related to the Company's engagement with ICP as the Company's Market Maker, as well as the Company's participation and presentations at corporate investor events.
Office expense of $89,931 (September 30, 2024 - $83,521) related to general corporate administration, office supplies, and rent.
Professional fees of $126,063 (September 30, 2024 - $126,942) were related to Audit, legal, and accounting services.
Salaries and director's fees of $287,290 (September 30, 2024 - $222,299) related to salaries paid to the CEO, Executive Chairman, employees in Mexico, and directors' fees paid in cash.
Share-based compensation of $192,271 (September 30, 2024 - $201,649) related to the grant and vesting of certain equity instruments, including stock options, deferred share units, and performance share units. In the prior period a higher number of equity instruments were granted or vested relative to the current period.
Transfer agent and filing fees of $22,523 (September 30, 2024 - $15,182) related to transfer agent, TSX-V sustaining fees, OTCQB fees, and SEDAR+ filing fees.
Accretion expense on reclamation provision was $3,687 (September 30, 2024 - $1,792) in relation to obligations related to camp reclamation.
Foreign exchange loss of $60,786 (September 30, 2024 – $723,347) was related to the translation of the Company's Mexican operations from Mexican pesos to Canadian dollars as well as foreign currency variances recorded upon the settlement of certain foreign currency-denominated transactions. As a result of the disposition of Marlin the Company is less exposed to foreign currency fluctuations.
September 30, 2025 Management Discussion and Analysis
36 | Page
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Interest income of $37,013 (September 30, 2024 – expense of $69) related to interest paid or accrued in relation to deposits held in guaranteed investment certificates.
The Company closed the disposition of Marlin Gold Mining Ltd. ("Marlin") on July 16, 2024, and recorded a gain on disposition of $24,266,842 which represented the value of consideration (a 0.5% NSR valued at $Nil) less the net assets of Marlin which were negative $24,266,842.
The September 30, 2024, loss on sale of marketable securities of $113,772 related to the change in value of the shares of Mako Mining Corp. from date they were received to the date of disposition.
Loss on sale of equipment of $Nil (September 30, 2024 – gain of $6,108) related to the disposition of non-essential exploration equipment.
The September 30, 2024, recovery of value added tax of $286,809 related to the receipt of value added tax which had previously been written off.
The September 30, 2024, retirement of concession fees of $6,496,684 related to concession fees associated with the La Trinidad Project which became statue barred and were therefore no longer payable.
Other income of $26,717 (September 30, 2024 – $150,161) related to the rental of the Company's equipment in Mexico and other miscellaneous non-recurring items. In the prior period the Company engaged in bulk processing of material by contract mining operators on the Company's non-core mineral concessions which did not occur in the current period.
Discussion of results – Nine-Month Period Ended September 30, 2025
The Company's net loss for the nine-month period ended September 30, 2025, was $5,858,949 (September 30, 2024, net income of – $20,624,150. During the period the Company's total expenses were $5,850,412 (September 30, 2024 - $11,595,008). Significant fluctuations during the nine-months included the following:
The Company incurred concession fees of $700,606 (September 30, 2024 - $7,806,650). The reduction resulted from the Company's disposition of Marlin, and a corresponding reduction of concession fees related to the La Trinidad Project.
Consulting of $194,958 (September 30, 2024 - $64,995) related to fees for accounting, project investigation, and other operational services from independent contractors.
Depreciation of $129,684 (September 30, 2024 - $145,317) related to depreciation of the Company's equipment. The Company disposed of certain exploration equipment in the prior year therefore there was a corresponding decrease in depreciation.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Exploration expenditures were $2,310,012 (September 30, 2024 - $1,202,601) as per the table below:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| $ | $ | |
| Community relations | 98,273 | 511,508 |
| Consulting | 53,116 | - |
| Drilling | 1,195,267 | (915) |
| Engineering | 102,908 | - |
| Environmental / reclamation | 138,641 | 15,545 |
| Field | 346,711 | 285,593 |
| Geochemistry | 15,429 | 380,566 |
| Geological | 343,160 | 10,304 |
| Metallurgical | 16,507 | - |
| Total | 2,310,012 | 1,202,601 |
Exploration activities during the quarter focused on recommencement of drilling, with data re-processing, geological modelling, and data integration to support exploration of the new targets in the vicinity of the San Marcial discovery and resource.
Investor relations of $352,685 (September 30, 2024 - $90,533) related to the Company's engagement with ICP as the Company's Market Maker, as well as the Company's participation and presentations at corporate investor events.
Office expense of $248,267 (September 30, 2024 - $281,776) related to general corporate administration, office supplies, and rent.
Professional fees of $337,350 (September 30, 2024 - $645,933) were related to Audit, legal, and accounting services. The decrease can be attributed to lower transactional activity during the current period as the Company was engaged in strategic activities such as the sale of Marlin Gold Mining Ltd. and the Waiver and release entered with Mako Mining Corp.
Salaries and directors' fees of $751,407 (September 30, 2024 - $683,443) related to salaries paid to the CEO, Executive Chairman, employees in Mexico, and directors' fees paid in cash.
Share-based compensation of $668,537 (September 30, 2024 - $602,763) related to the vesting of certain equity instruments, including stock options, deferred share units, and performance share units. In the current period a higher number of equity instruments vested relative to the prior period.
Transfer agent and filing fees of $68,569 (September 30, 2024 - $50,486) related to transfer agent, TSX-V sustaining fees, OTCQB fees, and SEDAR+ filing fees.
Travel of $88,337 (September 30, 2025 - $20,511) related to site visits and travel to Mexico by executive management to advance the Company's exploration objectives as well as travel to investor conferences.
Accretion expense on reclamation provision was $10,661 (September 30, 2024 - $5,335) in relation to obligations related to camp reclamation.
Foreign exchange loss of $105,740 (September 30, 2024 – gain of $364,779) was related to the translation of the Company's Mexican operations from Mexican pesos to Canadian dollars as well as foreign currency
September 30, 2025 Management Discussion and Analysis
38 | Page
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
variances recorded upon the settlement of certain foreign currency-denominated transactions. As a result of the disposition of Marlin the Company is less exposed to foreign currency fluctuations.
Interest income of $42,763 (September 30, 2024 – expense of $1,894) related to interest paid or accrued in relation to deposits held in guaranteed investment certificates.
The September 30, 2024, gain on disposition of indemnification asset of $176,299 related to additional consideration received upon entering a Waiver and Release Agreement whereby the Company released a prior vendor from the indemnification of a reclamation liability related to the La Trinidad Property.
The Company closed the disposition of Marlin Gold Mining Ltd. ("Marlin") on July 16, 2024, and recorded a gain on disposition of $24,266,842 which represented the value of consideration (a 0.5% NSR valued at $Nil) less the net assets of Marlin which were negative $24,266,842.
The September 30, 2024, gain on sale of marketable securities of $182,928 related to the change in value of the shares of Mako Mining Corp. from date they were received to the date of disposition.
Loss on sale of equipment of $Nil (September 30, 2025 – loss of $68,218) related to the disposition of non-essential exploration equipment.
The September 30, 2024, recovery of value added tax of $393,397 related to the receipt of value added tax which had previously been written off.
The September 30, 2024, retirement of concession fees of $6,496,684 related to concession fees associated with the La Trinidad Project which became statue barred and were therefore no longer payable.
Other income of $65,101 (September 30, 2024 – $413,676) related to the rental of the Company's equipment in Mexico and other miscellaneous non-recurring items. In the prior period the Company engaged in bulk processing of material by contract mining operators on the Company's non-core mineral concessions which did not occur in the current period.
LIQUIDITY AND CAPITAL RESOURCES
The Company's approach to managing liquidity risk is to forecast cash flows required for its planned operating, investing and financing activities so that it will have sufficient liquidity to meet liabilities when due. Management expects that cash flows related to operating, general and administrative, and exploration and evaluation activities will be funded by the Company's cash on hand. While the Company's current cash is sufficient to settle its current liabilities, it may be insufficient to finance all currently proposed, planned or anticipated general and administrative and exploration, evaluation and resource development program activities, and the Company could have to seek additional financing in order to further fully evaluate its projects, or modify its planned programs as appropriate. The Company will continue to forecast its cash flows and investigate opportunities to obtain further financing, if necessary, through transactions to maintain liquidity, such as equity placements, debt or joint venture arrangements. The quantity of funds to be raised and the terms of any equity financing that may be undertaken will be negotiated by management as opportunities to raise funds arise. There can be no assurance that such funds will be available on favorable terms, or at all.
September 30, 2025 Management Discussion and Analysis
39 | Page
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
As of September 30, 2025, the Company had a working capital of $11,234,321 (December 31, 2024 – working capital of $34,152). Included in current liabilities is $1,051,033 in relation to Mexico concession fees payable for the Company’s Goldplay concessions. The Goldplay concessions are considered non-core and the Company does not expect to make these payments during the fiscal 2025 year.
During the nine-month period ended September 30, 2025, the Company completed the following equity transactions:
- On May 27, 2025, the Company raised gross proceeds of $1,844,700 in a non-brokered private placement financing of 14,190,000 units at a price of $0.13 per unit. Each unit consisted of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at an exercise price of $0.19 per warrant until May 27, 2027. The Company paid cash finders fees of $104,442 and issued 803,400 agent warrants on the same terms.
- Issued 14,783,592 common shares upon the exercise of warrants for proceeds of $2,139,452.
- On August 13, 2025, the Company closed a brokered private placement of 69,000,000 units at a price of $0.20 per unit for gross proceeds of $13,800,000. Each unit consisted of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at an exercise price of $0.28 per warrant until August 13, 2028. The Company paid cash finders fees of $828,000 and issued 4,140,000 broker warrants. Each broker warrant is exercisable into one unit at an exercise price of $0.20 per share until August 13, 2028.
The table below highlights the Company’s cash flows during the periods ended:
| Net cash provided by (used in) | September 30, 2025 | September 30, 2024 |
|---|---|---|
| $ | $ | |
| Operating activities | (5,299,041) | (2,952,197) |
| Investing activities | (22,021) | 1,609,310 |
| Financing activities | 16,549,034 | 3,563,509 |
| Cash, beginning | 1,162,255 | 100,573 |
| Cash, end | 12,390,227 | 2,321,195 |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Update on Prior Use of Proceeds Disclosure:
| Financing | Principal purpose as previously disclosed to September 30, 2025 | Financing Amount, net of share issue costs $ | Estimated Actual Expenditures $ |
|---|---|---|---|
| Non-brokered private placement February 9, 2024, of 6,700,000 units at a price of $0.10 per unit | General working capital and work programs on the Company’s Plomosas Project | 615,760 | 615,760 |
| Non-brokered private placement September 29, 2024, of 14,807,338 units at a price of $0.16 per unit | General working capital and exploration in the San Marcial Area of the Plomosas Project | 2,220,372 | 2,220,372 |
| Non-brokered private placement May 27, 2025, of 14,190,000 units at a price of $0.13 per unit | Exploration on the San Marcial Area of the Plomosas Project and general working capital. | 1,713,217 | 1,713,217 |
| Underwritten private placement August 13, 2025, of 69,000,000 units at a price of $0.20 per unit | Step-out drilling on the San Marcial Area of the Plomosas Project, Plomosas Mine Area Bulk Sampling, and general working capital. | 12,696,365 | 306,138 |
SUMMARY OF QUARTERLY RESULTS
The following table sets forth selected quarterly consolidated financial information for each of the last eight quarters:
| September 30, 2025 | June 30, 2024 | March 31, 2025 | December 31, 2024 | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Net loss | (2,822,682) | (1,485,223) | (1,471,048) | (1,339,307) |
| Earnings (loss) per share - basic | (0.01) | (0.00) | (0.00) | (0.02) |
| Earnings (loss) per share - diluted | (0.01) | (0.00) | (0.00) | (0.02) |
| Total assets | 20,966,292 | 10,525,242 | 10,259,903 | 9,720,304 |
| Working capital | 11,234,321 | 981,010 | 496,694 | 34,152 |
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |
| $ | $ | $ | $ | |
| Net income (loss) | 25,735,963 | 25,598 | (5,137,411) | (13,577,529) |
| Earnings (loss) per share - basic | 0.08 | (0.02) | (0.02) | (0.08) |
| Earnings (loss) per share - diluted | 0.07 | (0.02) | (0.02) | (0.08) |
| Total assets | 11,116,943 | 10,215,975 | 10,232,676 | 10,723,449 |
| Working capital (deficiency) | 635,851 | (27,358,404) | (29,098,544) | (23,706,229) |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
During the quarter ended September 30, 2025, the Company recorded a net loss of $2,822,682. During the quarter the Company's total expenses were $2,821,939, the most significant items were concession fees of $375,121, consulting fees of $154,694, exploration expenditures of $1,362,523, investor relations of $165,235, office of $89,931, professional fees of $126,063, salaries and benefits of $257,290, and share-based compensation of $192,271.
During the quarter ended June 30, 2025, the Company recorded a net loss of $1,485,223. During the quarter the Company's total expenses were $1,482,769, the most significant items were exploration expenditures of $567,750, investor relations of $65,044, professional fees of $74,009, salaries and benefits of $232,730, and share-based compensation of $263,762.
During the quarter ended March 31, 2025, the Company recorded a net loss of $1,471,048. During the quarter the Company's total expenses were $1,475,538, the most significant items were concession fees of $291,697, exploration expenditures of $379,739, investor relations of $122,406, salaries and benefits of $231,387, and share-based compensation of $142,339.
During the quarter ended December 31, 2024, the Company recorded a net loss of $1,339,307. During the quarter the Company's total expenses were $1,048,822, the most significant items were exploration expenditures of $287,608, professional fees of $124,694, and salaries and director fees of $250,322, and share-based compensation of $144,801. Other items included an incremental a gain on disposition of Marlin of $132,054 related to VAT which was considered impaired at the disposition date, and a provision for VAT of $78,499.
During the quarter ended September 30, 2024, the Company completed a private placement raising gross proceeds of $2,369,174 and had warrants exercised for proceeds of $121,230. The Company recorded a net income of $25,735,963 and incurred expenses of $4,631,301 which included $3,422,935 in concession fees, $446,473 in exploration expenditures, salaries of $222,299, professional fees of $126,942, and share based compensation of $201,649. Other items included foreign exchange expense of $723,347, a gain on disposition of its Marlin subsidiary of $24,266,842, a loss on marketable securities of $113,772, a recovery of VAT of $286,970, retirement of concession fees of $6,496,684, and other income of $149,801.
During the quarter ended June 30, 2024, the Company had warrants exercised for proceeds of $653,377, recovered $623,981 in value added tax and incurred expenses of $2,427,740 which included $374,447 in exploration expenditures, $867,423 in concession fees, salaries of $221,145, professional fees of $348,644, and share based compensation of $395,787. The Company also incurred a foreign exchange gain of $1,957,851 and an unrealized gain on marketable securities of $296,700.
During the quarter ended March 31, 2024, the Company completed a private placement for gross proceeds of $620,000, recovered $58,838 in value added tax and incurred expenses of $4,536,768, which included $381,680 in exploration expenditures, $3,516,292 in concession fees, salaries of $239,999, professional fees of $170,347 and other of $228,450.
During the quarter ended December 31, 2023, the Company completed an initial tranche of a private placement for gross proceeds of $1,432,511 and incurred expenses of $4,694,620, which included $315,448 in exploration expenditures, $3,728,414 in concession fees, net of retirement of $(4,732,000), salaries of $233,704 and professional fees of $152,170.
September 30, 2025 Management Discussion and Analysis
42 | Page
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
^{}[]
GR SILVER
MINING LTD
SHARE CAPITAL
Details of the Company's capitalization are as follows:
| September 30, 2025 | Date of MD&A | |
|---|---|---|
| Common shares | 431,121,605 | 433,166,777 |
| Warrants | 87,153,247 | 86,308,075 |
| Stock options | 10,370,000 | 10,970,000 |
| DSUs | 684,532 | 684,532 |
| PSUs | 5,037,205 | 3,837,205 |
RELATED PARTY TRANSACTIONS
Key management personnel compensation for the periods ended was:
| September 30, 2025 | September 30, 2024 | |
|---|---|---|
| $ | $ | |
| Salary paid to Marcio Fonseca (President and CEO) | 201,250 | 195,000 |
| Salary paid to Eric Zaunscherb (Executive Chairman, Director) | 75,000 | 75,000 |
| Consulting fees paid to Robert Payment (CFO and Corporate Secretary) | 65,250 | - |
| Salary paid to Luis Coto (VP Exploration) | 28,087 | - |
| Salary paid to Alejandro Cano (Former VP Operations, Mexico) | 115,650 | 107,414 |
| Consulting fees paid to Blaine Bailey (Former CFO and Corporate Secretary) | - | 58,500 |
| Director fees paid to Trevor Woolfe | 7,500 | - |
| Director fees paid to Larry Taddei | 7,500 | - |
| Director fees paid to Jessica Van Den Akker | 7,500 | - |
| Director fees paid to Brent McFarlane | 7,500 | - |
| Stock based compensation to Directors and Officers | 389,377 | 379,884 |
| Total | 904,614 | 815,798 |
| Share-based compensation | September 30, 2025 | September 30, 2024 |
| --- | --- | --- |
| Marcio Fonseca (President and CEO) | 60,637 | 76,215 |
| Eric Zaunscherb (Executive Chairman, Director) | 60,637 | 76,215 |
| Robert Payment (CFO and Corporate Secretary) | 22,593 | - |
| Blaine Bailey (Former CFO and Corporate Secretary) | 40,000 | 69,159 |
| Trevor Woolfe (Director) | 31,177 | 42,550 |
| Larry Taddei (Director) | 31,177 | 42,550 |
| Jessica Van Den Akker (Director) | 24,878 | 16,688 |
| Brent McFarlane (Director) | 24,878 | 16,688 |
| Alejandro Cano (Former VP Operations, Mexico) | 55,235 | - |
| Luis Coto (VP Exploration) | 38,165 | - |
| Fernando Berdegue (Former Director) | - | 39,819 |
| Total | 389,377 | 379,884 |
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
These transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
Directors' fees of $30,000 were included in accounts payable and accrued liabilities at September 30, 2025. $7,500 was owed to each of Trevor Woolfe, Larry Taddei, Jessica Van Den Akker, and Brent McFarlane.
DISCLOSURE OF MANAGEMENT COMPENSATION
In accordance with the requirements of Section 19.5 of TSXV Policy 3.1, the Company provides the following disclosure with respect to the compensation of its directors and officers during the period:
- During the period ended September 30, 2025, and the year ended December 31, 2024, the Company did not enter any standard compensation arrangements made directly or indirectly with any directors or officers of the Company, for their services as directors or officers, or in any other capacity, with the Company or any of its subsidiaries except as disclosed under "Related Party Transactions".
- During the period ended September 30, 2025, and the year ended December 31, 2024, officers of the Company were paid for their services as officers by the Company as noted above under "Related Party Transactions".
- During the period ended September 30, 2025, and the year ended December 31, 2024, the Company did not enter an arrangement relating to severance payments to be paid to an officer of the Company as noted above under "Related Party Transactions".
ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS
The following table sets out the following material components for the periods presented:
| Period ended September 30, 2025 | Year ended December 31, 2024 | Year ended December 31, 2023 | |
|---|---|---|---|
| $ | $ | $ | |
| Exploration and evaluation assets or expenditures | 2,310,012 | 1,490,209 | 4,082,583 |
| Expensed research and development | - | - | - |
| Intangible assets arising from development | - | - | - |
| General and administrative expenses | 248,267 | 322,533 | 471,543 |
| Other material costs expensed or recognized as assets | 3,322,691 | (21,097,585) | 21,043,863 |
| Total | 5,880,970 | (19,284,843) | 25,597,989 |
OFF BALANCE SHEET ARRANGEMENTS
The Company does not have any off-balance sheet arrangements.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
^{}[]
GR SILVER MINING LTD
INVESTOR RELATIONS
On November 29, 2024, the Company engaged the services of ICP Securities Inc. ("ICP") to provide automated market making services, including use of its proprietary algorithm, ICP Premium™, in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation. ICP will be paid a monthly fee of $7,500, plus applicable taxes. The agreement between the Company and ICP was signed with a start date of November 29, 2024, and is for four (4) months (the "Initial Term") and shall be automatically renewed for subsequent one (1) month terms (each month called an "Additional Term") unless either party provides at least thirty (30) days written notice prior to the end of the Initial Term or an Additional Term, as applicable.
CRITICAL ACCOUNTING ESTIMATES
The preparation of the Company's condensed interim consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed interim consolidated financial statements, and the reported amounts of revenues and expenses during the reporting year. Areas requiring the use of estimates in the preparation of the Company's condensed interim consolidated financial statements include the carrying value and the recoverability of the exploration and evaluation assets included in the condensed interim consolidated statement of financial position, the assumptions used to determine the fair value of share-based payments in the condensed interim consolidated statement of comprehensive loss, and the estimated amounts of reclamation and environmental obligations. Management believes the estimates used are reasonable; however, actual results could differ materially from those estimates and, if so, would impact future results of operations and cash flows.
CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL ADOPTION
There were no changes in the Company's material accounting policies during the year ended December 31, 2024, that had a material effect on its consolidated financial statements. The Company's material accounting policies are disclosed in Note 2 to its consolidated financial statements for the year ended December 31, 2024.
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Refer to Note 13 of the Company's condensed interim consolidated financial statements for the nine-month period ended September 30, 2025.
RISKS AND UNCERTAINTIES
The Company's principal business activities are the acquisition, exploration, and definition of potentially economically viable mineral resource deposits on mineral properties, which, by nature, are speculative. Companies in this industry are subject to many and varied kinds of risks, including but not limited to; environmental, fluctuating commodity prices, social, political, financial and economics. Additionally, few exploration projects successfully achieve development due to factors that cannot be predicted or foreseen. While risk management cannot eliminate the impact of all potential risks, the Company strives
September 30, 2025 Management Discussion and Analysis
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GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
to manage such risks to the extent possible and practicable. Due to the high-risk nature of the Company's business and the present stage of the Company's various mineral properties, an investment in the Company's common shares should be considered a highly speculative investment that involves significant financial risks, and prospective investors should carefully consider all of the information disclosed in this MD&A and the Company's other public disclosures, including the risk factors disclosed in the "Risks and Uncertainties" section of the Company's MD&A for the year ended December 31, 2024, prior to making any investment in the Company's common shares.
The risk factors described in the "Risks and Uncertainties" section of the Company's MD&A for the year ended December 31, 2024, do not necessarily comprise all of the risks and uncertainties that the Company faces. Additional risks and uncertainties not presently known to the Company or that the Company currently considers immaterial may also adversely affect the Company's business, results of operations, financial results, prospects and price of common shares. These risk factors could materially affect the Company's future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to the Company.
Financing Risks
The Company has limited financial resources, has no source of operating cash flow and has no assurance that additional funding will be available to it for further exploration and development of its projects or to fulfill its obligations under any applicable agreements. There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of its projects with the possible loss of such properties.
Financings are subject to regulatory review and approval. The Company cannot guarantee that such approval will be obtained and/or will be obtained without amendment to the terms of the finance
Foreign Country Risk
The Company's sole material property is located in Mexico. The Company is subject to certain risks as a result of conducting foreign operations, including, but not limited to: currency fluctuations; possible political or economic instability that may result in the impairment or loss of mineral titles or other mineral rights; opposition from environmental or other non-governmental organizations; government regulations relating to the mining industry; renegotiation, cancellation or forced modification of existing contracts; expropriation or nationalization of property; changes in laws or policies or increasing legal and regulatory requirements including those relating to taxation, royalties, imports, exports, duties, currency, or other claims by government entities, including retroactive claims and/or changes in the administration of laws, policies and practices; uncertain political and economic environments; war, terrorism, narco-terrorist actions or activities, sabotage and civil disturbances; delays in obtaining or the inability to obtain or maintain necessary governmental or similar permits or to operate in accordance with such permits or regulatory requirements; currency fluctuations; import and export regulations, including restrictions on the export of gold, silver or other minerals; limitations on the repatriation of earnings; and increased financing costs. Any changes in regulations or shifts in political attitudes are beyond the control of the Company and may adversely affect its business. The introduction of new tax laws, regulations or rules, or changes to, or differing interpretation of, or application of, existing tax laws, regulations, or rules in any of the countries in which the Company currently conducts business or in the future may conduct business, could result in an increase in taxes, or other governmental charges, duties, or impositions. No assurance can be given that new tax laws, rules or regulations will not be enacted or that existing tax laws will not be changed, interpreted, or applied in a manner that could otherwise have a material adverse effect on the Company.
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
Organized Crime Risk
Violence in Mexico is well documented and has, over time, been increasing. Conflicts between the drug cartels and violent confrontations with authorities are not uncommon. Other criminal activity, such as kidnapping and extortion, is also an ongoing concern. Many incidents of crime and violence go unreported and efforts by police and other authorities to reduce criminal activity are challenged by a lack of resources, corruption, and the pervasiveness of organized crime. Incidents of criminal activity have occasionally affected the communities in the vicinity of the Company's operations. Such incidents may prevent access to the Company's property or offices; halt or delay operations; result in harm to employees, contractors, visitors, or community members; increase employee absenteeism; create or increase tension in nearby communities; or otherwise adversely affect the Company's ability to conduct business. The Company can provide no assurance that security incidents, in the future, will not have a material adverse effect on its operations.
Legislative Changes in Mexico
On May 8, 2023, the Mexican Government enacted a decree amending several provisions of the Mining Law, the Law on National Waters, the Law on Ecological Equilibrium and Environmental Protection and the General Law for the Prevention and Integral Management of Waste (the "Decree"), which became effective on May 9, 2023. The Decree amends the mining and water laws, including: (i) the duration of the mining concession titles, (ii) the process to obtain new mining concessions (through a public tender), (iii) imposing conditions on water use and availability for the mining concessions, (iv) the elimination of "free land and first applicant" scheme, (v) new social and environmental requirements in order to obtain and keep mining concessions, (vi) the authorization by the Ministry of Economy of any mining concession's transfer, (vii) new penalties and cancellation of mining concessions grounds due to non-compliance with the applicable laws, (viii) the automatic dismissal of any application for new concessions, and (ix) new financial instruments or collaterals that should be provided to guarantee the preventive, mitigation and compensation plans resulting from the social impact assessments, among other amendments.
These amendments could have an impact on our current and future exploration activities and operations in Mexico. However, the likelihood and extent of such impact is yet to be determined.
GR Silver wholly owns concessions in the Rosario Mining District for which titles and operating permits are held and it is not expected that this will change under the modified legislation, although no assurances can be given as the full impact of the changes are unknown at this time. In addition, while GR Silver has nurtured relationships with in-country stakeholders, enjoyed success in the granting of permits from Mexican authorities and secured long term agreements with neighbouring ejidos, there is no assurance that these relationships and successes will continue. The full impacts of the legislative changes have not yet been completely assessed as the industry waits for the Government to issue changes to the Mining Law Regulations further clarifying the changes. The Company will continue to monitor this closely to best deal with the changes. There is no assurance that these changes will not adversely affect the Company or its Mexican properties and assets.
FORWARD-LOOKING STATEMENTS
This MDA contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. These statements relate to future events or the future activities or performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in preliminary economic
September 30, 2025 Management Discussion and Analysis
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GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
analyses or prefeasibility studies also may be deemed to be forward-looking statements in that they reflect a prediction of the mineralization that would be encountered, and the results of mining that mineralization, if a mineral deposit were developed and mined. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, plans and similar expressions, or which by their nature refer to future events. These forward-looking statements include, but are not limited to, statements concerning:
- the Company's strategies and objectives, both generally and in respect of its specific mineral properties or exploration and evaluation assets;
- the timing of decisions regarding the timing and costs of exploration programs with respect to, and the issuance of the necessary permits and authorizations required for, the Company's exploration programs;
- the Company's estimates of the quality and quantity of the resources at its mineral properties;
- the Company's ability to increase through additional drilling the quality and quantity of the resources at its mineral properties;
- the timing and cost of planned exploration programs of the Company and the timing of the receipt of results thereof;
- general business and economic conditions;
- the Company's ability to meet its financial obligations as they come due, and to be able to raise the necessary funds to continue operations; and
- the Company's expectation that it will be able to add additional mineral projects of merit to its existing property portfolio.
The Company can give no assurance that such expectations will prove to be correct. Inherent in forward looking statements are risks and uncertainties beyond the Company's ability to predict or control, including, but not limited to, risks related to the Company's inability to raise the necessary capital to be able to continue in business and to implement its business strategies, to identify one or more economic deposits on its properties, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, and other risks identified herein under "Risks and Uncertainties".
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results are likely to differ, and may differ materially, from those expressed or implied by forward looking statements contained in this MDA. Such statements are based on several assumptions which may prove incorrect, including, but not limited to, assumptions about:
- the level and volatility of the price of commodities;
- general business and economic conditions;
- the timing of the receipt of regulatory and governmental approvals, permits and authorizations necessary to implement and carry on the Company's planned exploration;
- conditions in the financial markets generally;
- the Company's ability to attract and retain key staff;
- the nature and location of the Company's mineral exploration projects, and the timing of the ability to commence and complete the planned exploration programs; and
- the ongoing relations of the Company with its regulators.
These forward-looking statements are made as of the date hereof and the Company does not intend and does not assume any obligation, to update these forward-looking statements, except as required by
September 30, 2025 Management Discussion and Analysis
GR SILVER MINING LTD.
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2025
GR SILVER MINING LTD
applicable law. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on forward-looking statements.
Historical results of operations and trends that may be inferred from the following discussion and analysis may not necessarily indicate future results from operations. The current state of the global securities markets may cause significant reductions in the price of the Company's securities and render it difficult or impossible for the Company to raise the funds necessary to continue operations.
APPROVAL
The Board of Directors of the Company has approved the disclosures in this MDA.
ADDITIONAL SOURCES OF INFORMATION
Additional disclosures pertaining to the Company, including its most recent, financial statements, management information circular, material change reports, press releases and other information, are available on the SEDAR website at www.sedarplus.ca or on the Company's website at www.grsilvermining.com. Readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
September 30, 2025 Management Discussion and Analysis