Minera Alamos Inc. — Management Reports 2021

Nov 26, 2021

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MANAGEMENT’S DISCUSSION & ANALYSIS NINE MONTH PERIOD ENDED SEPTEMBER 30, 2021

The following discussion and analysis is management’s assessment of the results and financial condition of Minera Alamos Inc. (“ Minera Alamos ” or the “ Company ”) for the three and nine months ended September 30, 2021 and should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2020 and 2019 and the notes thereto, that have been prepared by management in accordance with International Financial Reporting Standards (“IFRS”). The Company’s most recent filings are available on the SEDAR website. The date of this management’s discussion and analysis is November 25, 2021.

FORWARD LOOKING STATEMENTS

Certain information included in this discussion may constitute forward-looking statements. Forward-looking statements are based on current expectations and various risks and uncertainties. These risks and uncertainties could cause or contribute to actual results that are materially different than those expressed or implied. The Company disclaims any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

BUSINESS OF MINERA ALAMOS

Minera Alamos is a junior mining and exploration company currently dedicated to acquiring, exploring and developing mining projects in Mexico.

The Company was incorporated pursuant to the laws of the Province of Ontario in January, 1934. Through various actions at the end of the 1990’s up to 2006, the Company reorganized itself and amalgamated various subsidiaries to establish its current form. Subsequently, four subsidiaries were acquired– Minera Alamos de Sonora S.A. de C.V.; Molibdeno Los Verdes S.A. de C.V.; Cobre 4H S.A. de C.V.; and Minera Mirlos, S. de R.L. de C.V.

On May 4, 2016, the Company announced the completion of the acquisition of 100% of the mineral claims known as the “La Fortuna” gold project located in the State of Durango, Mexico from Argonaut Gold Inc. and its wholly owned subsidiary Durango Fern Mines, S.A. de C.V. The project is currently in development and it is expected that a construction decision, if deemed appropriate by management, could be made in 2021.

On April 13, 2018, the Company acquired Corex Gold Corporation (“Corex”) as approved by Corex shareholders pursuant to a special meeting held on April 4, 2018. Under the terms of the Agreement, each Corex shareholder received 0.95 common shares of Minera Alamos Inc. in exchange for each Corex share held. The business combination was completed by way of share exchange pursuant to a statutory plan of arrangement under the Business Corporations Act (British Columbia) resulting in Corex becoming a wholly

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owned subsidiary of Minera Alamos Inc. Pursuant to the transaction, the Company issued 150,470,661 common shares valued at $0.14 to the former shareholders of Corex. In connection with this transaction, the Company also issued 22,985,725 warrants valued at $689,886 and issued 6,935,000 share purchase options valued at $798,000 in exchange for the cancellation of Corex warrants and options outstanding. The warrants were valued using the Black-Scholes valuation model using the following weighted assumptions: expected dividend yield 0%, expected volatility 77% risk free rate of return 2.0% and an expected life of 1.13 years. The options were valued using the Black-Scholes valuation model using the following weighted averaged assumptions: expected dividend yield 0%, expected volatility 123%, risk free rate of return of 2.0% and an expected life of 3.26 years.

In September 2020 the Company finalized definitive option agreements with arm’s length parties to acquire 100% of the Cerro de Oro project comprising the Zacatecas I and Zacatecas II concessions near Concepcion del Oro, Zacatecas, Mexico . The acquisition of the two core claims in the district that contain a significant gold prospect increase the Company’s total claim holdings in the Concepcion del Oro district to approximately 6,500 ha in size. The agreements convey 100% ownership to the Company with no underlying royalties subject to meeting a schedule of payments.

The Company is engaged in the acquisition, exploration and development of precious metal properties located in Mexico. To date, the Company has not earned any significant revenues. The Company’s primary focus is the advancement of its Santana gold mine in Sonora, Mexico. The Santana property is located about two and a half hours drive northeast of the City of Obregon. Obregon has regular air service nonstop to Hermosillo and Guadalajara. The project is 100% owned and is approximately 3,500 ha. A pre-commercial bulk sample was mined and processed in 2018 and early 2019. A construction decision was made by management in Q1 2020 and while there were some initial delays caused by the COVID 19 pandemic during the initial preparation and preconstruction activity, construction activities were largely complete by the end of Q2 2021. During Q3 2021, mining activities continued to open up the Nicho Norte starter pit. Gold leaching operations were commissioned at the end of August 2021 utilizing a test area of mineralized material stacked on the leach pad. The first loading of gold in the Company’s carbon plant was initiated in September 2021 with the expectation of the first gold production early in the fourth quarter.

COVID-19

The global outbreak of COVID-19 (coronavirus), has had a significant impact on businesses through restrictions put in place by the Canadian and Mexican governments regarding travel, business operations and isolations/quarantine orders. At this time it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions and quarantine/isolation measures that are currently, or may be put in place by Canada, Mexico and other countries to fight the virus. While the extent of the impact is unknown, we anticipate that this outbreak may cause supply chain disruptions, staff shortages and increased government regulations, all of which may negatively impact the Company’s business and financial condition.

SELECTED QUARTERLY INFORMATION

The following selected information is derived from the audited year end consolidated financial statements and the unaudited quarterly consolidated financial statements:

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	Quarter Ended September 30, 2021 $	Quarter Ended June 30, 2021 $	Quarter Ended March 31, 2021 $	Quarter Ended December 31, 2020 $
Net income(loss) (000’s)	1,158	1,318	(2,790)	560
Basic and diluted(loss)incomeper share	0.00	0.01	(0.01)	0.01
Total assets(000’s)	34,991	35,151	33,704	33,359
Total liabilities(000’s)	2,220	1,274	1,215	1,476
Shareholders’ Equity (000’s)	32,772	33,877	32,489	31,883

	Quarter Ended September 30, 2020 $	Quarter Ended June 30, 2020 $	Quarter Ended March 31, 2020 $	Quarter Ended December 31, 2019 $
Net(loss)income(000’s)	(2,294)	6,981(1)	(856)	1,463
Basic and diluted(loss)incomeper share	(0.01)	0.02	(0.00)	0.00
Total assets(000’s)	33,232	19,444	12,510	7,345
Total liabilities(000’s)	3,731	3,773	4165	4,255
Shareholders’ Equity (000’s)	29,501	15,671	8,345	3,091

1. Net income for the period reflects the sale of a 3% Net Smelter Royalty for gross proceeds of $5,000,000 and recognition of $4,970,524 FVTPL adjustment on marketable securities.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2021, the Company had working capital of $14,693,690 in comparison to December 31, 2020, of $22,552,593. The September 30, 2021, cash and cash equivalents balance of $12,368,904 will be used for the development of the Company’s Santana gold project, the exploration and development of the Cerro de Oro gold project and the Company’s other mineral properties and for general corporate purposes. All material cash balances are maintained in interest bearing accounts at the Company’s bank in Canada.

The Company’s net cash flows (used in) , after the inclusion of changes to non-cash operating accounts were ($5,522,086) and ($23,691) for the nine month periods ended September 30, 2021 and September 30, 2020, respectively.

The Company’s cash from financing activities was $831,712 for the nine month period ended September 30, 2021, a result of the exercise of 4,210,000 stock options and 1,910,400 warrants during the period for proceeds of $917,540. Subsequent to the period end 48,000 stock options at a price of $0.15 per option were exercised for gross proceeds of $7,200.

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The Company’s investing activities for the nine month period ended September 30, 2021, were a result of the sale of 1,250,000 Prime Mining shares for proceeds of $4,532,500 with a resulting gain on the sale of $1,222,500 and the investment of $7,384,048 in the Company’s mineral properties.

The activities of the Company, which are primarily the acquisition, exploration and development of mineral properties, are financed through the completion of equity transactions such as equity offerings and the exercise of stock options and warrants as well as the issuance of debt. In light of current market conditions, the Company continues to explore various alternate methods to continue the advancement of its projects. There is no assurance that equity capital will be available to the Company in the required amounts, with acceptable terms or at the time required. Please refer to the “Risk Factors” section below.

RESULTS OF OPERATIONS

The Company’s operations during the three and nine months ended September 30, 2021, resulted in a net income of $1,158,559 and net loss of ($313,861) as compared to a net loss of $2,294,414 and net income of $3,831,101 in the comparable prior year period. The Company’s primary operational activity continues to be the advancement of mining activities at the Company’s Santana gold mine with continued exploration and development of the Company’s other major projects. The expenditures and levels of activity relating to the Company’s projects (rounded to the nearest thousand) are described in greater detail below followed by a brief discussion of significant line items in expenses.

Expenses	Three months ended September 30, 2021	Three months ended September 30, 2020	Nine months ended September 30, 2021	Nine months ended September 30, 2020
	$	$	$	$
Exploration and evaluation	971,000	2,226,000	1,493,000	(1,525,000)
Insurance	19,000	18,000	45,000	40,000
Interest expense	-	56,000	-	164,000
Investor relations	101,000	73,000	173,000	218,000
Office and administration	212,000	175,000	497,000	418,000
Professional fees	14,000	64,000	311,000	524,000
Salaries and compensation	366,000	237,000	814,000	581,000
Share-based compensation	(3,190,000)	548,000	-	548,000
Transfer agent & Regulatory fees	66,000	26,000	111,000	105,000
Travel	31,000	18,000	61,000	76,000

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Exploration and evaluation – The expenditures in the period reflect the ongoing costs related to the exploration development and maintenance of the Companies properties located in Mexico. During the nine month period ended September 30, 2021 the Company spent $986,000 on acquisition and holding costs and $507,000 on exploration works on the properties. As of July 1, 2020 all costs incurred related to the Santana project are now being capitalized.

Interest – Interest expense incurred during the period is $Nil on the previously recorded senior secured loan which was repaid in October 2020.

Investor relations – Investor relations expenses during the current nine month period ended September 30, 2021 are a result of the resumption of trade shows and conferences that were impacted due to COVID 19 as compared to the comparative prior year period.

Office and administration – Office and administration expenses increased during the current period as compared to the prior year period reflecting the Company’s continued growth towards becoming a gold producer.

Professional fees – Professional fees decreased for the nine month period ended September 30, 2021 as compared to the prior year period with a corresponding increase in salaries and compensation a result of the Company’s continued growth towards becoming a gold producer.

Salaries and compensation – Salaries and compensation increased for the nine month period ended September 30, 2021 as compared to the prior year period reflecting the Company’s continued growth towards becoming a gold producer.

Share based compensation – The Company has recorded no share based compensation on the stock option grants for the nine month period ended September 30, 2021 reflecting the vesting requirements of the grant of options. Share based compensation will be recorded as the vesting conditions are met.

Travel – Travel expenses for the three month period ended September 30, increased from the comparative prior year period reflecting the reduction in travel restrictions due to COVID 19. Travel expenses for the nine month period ended September 30, 2021 as compared to the prior year period reflecting the overall reduction in travel on the year over year basis due to COVID 19.

EXPLORATION AND DEVELOPMENT ACTIVITIES AND EXPENDITURES

EXPLORATION AND DEVELOPMENT	ACTIVITIES AND EXPENDITURES
	For the nine months ended September 30,
	2021 2020
Santana, Mexico(i)(ii) La Fortuna, Mexico Cerro del Oro, Mexico Los Verdes, Mexico Other	154,552 (4,136,936) 216,203 309,619 927,432 2,125,764 156,382 153,357 38,860 22,941
	1,493,429 (1,525,255)

(i) Subsequent to June 30 2020 all costs incurred related to the project were capitalized.

(ii) During the period to June 30, 2020 the Company sold a 3% Net Smelter Royalty for gross proceeds of $5,000,000.

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Santana

The Company holds a 100% interest in 9 mining claims covering approximately 3,100 hectares located approximately 200 kilometres east- southeast of Hermosillo, Sonora, Mexico accessible via paved highway.

Additionally, the Company holds a 100% interest in two contiguous mining concessions that cover approximately 350 hectares, referred to as Santa Lucia and Hilda 35 Fraccion 1, also part of the Santana Project pursuant to two property option agreements dated December 11, 2007, and an amending agreement dated January 20, 2012, between the Company and private vendors. The Hilda 35 Fraccion 1 is also subject to a 2% net smelter return royalty (“NSR”). Each 1% NSR can be purchased for USD $1,000,000 within the three years following the conclusion of the feasibility study with positive results, in two contiguous mining concessions referred to as Santa Lucia and Hilda 35 Fraccion 1, located in Sonora State, Mexico, pursuant to two property option agreements dated December 11, 2007, and amending agreement dated January 20, 2012, between Corex and private vendors.

To date more than 30,000 meters of drilling has been completed on the project. A phase 1 drilling program was completed at Santana ( see news release dated May 3[rd] , 2018 ) following the receipt of successful community approvals associated with combining Minera Alamos’ Los Verdes contiguous on strike claim into the Santana plan of development.

A bulk test mining program and heap-leach test was completed on the project in 2019. An initial test phase utilized coarse crushing (<3”) with a second phase involving fine crushing (<1/2” to 5/8”) and agglomeration prior to leaching. In total, approximately 50,000 tonnes of mineralized material was placed on the test leach pads and the results of the bulk test work fully support the on-going development of the project with a goal towards commercial scale operation.

The test mining program produced approximately 1,100 oz of gold and 225 oz of Silver. As this was a test mining program all revenue from the sales of gold and silver produced has been credited to exploration and evaluation expenditures.

Bulk test mining operations at the Santana project were governed by a temporary environment/change of land use permit (MIA-ETJ) that was issued by SEMARNAT in 2016. The temporary permits covered changes made to a limited area of the project site which was consistent with the scope of the test activities.

In Q4 of 2019 The Company received the MIA (Manifestacion de Impacto Ambiental or “Environmental Impact Statement”) permit approval from the Federal Agency (Secretaria de Medio Ambiente y Recursos Naturales – SEMARNAT), for the development of the Company’s Santana gold project (“Santana”) in Sonora, Mexico. Together with the previously announced ( see Company News Release dated June 27, 2019) change of land use notification, the receipt of the authorized MIA documentation provides the Company with the key approvals necessary for the construction of a commercial scale mine and gold heap leach processing facilities at the Santana project site. The Santana MIA-ETJ applications were structured to provide the Company with significant flexibility to further optimize the development approach for the project and the ability to expand the project operations organically once resources are increased. The recently approved documents cover the following activities:

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• Approximately 73 hectares approved for mining use in the MIA which includes the required areas for initial development of the Nicho and Nicho Norte gold deposits as well as the related gold extraction and recovery facilities.

• The MIA remains in good standing for a period of 33 years which covers the potential construction, operations and closure stages for the project.

• The scope of the Operating Permit includes the two initial open pit mines, waste dump areas, crushing, heap leach pad, leach solution ponds, gold recovery facilities and all related infrastructure.

Drilling is ongoing at the Santana project following successful Phase 1 and Phase 2 programs. Most recently, a Phase 3 drilling program has been primarily focused on final pit optimization work around the main Nicho deposit and was successful in further expanding the deposit to the south and at depth.

Some of the recent highlights of this drilling are included below:

• Hole S20-145D - 55.3m grading 1.54 g/t Au from 10.5 m down hole

• Hole S20-147D - 284.8 m grading 0.69 g/t Au from surface and ending in mineralization

• Hole S20-148D - 277.2 m grading 0.43 g/t Au ending in mineralization

• Hole S20-149D - 152.7 m grading 0.77 g/t Au from surface (inc. 56.2 m grading 1.39 g/t Au)

• Hole S20-153D - 48.2 m grading 1.21 g/t Au from 10 m down hole

• Hole S20-158D - 53.7 m grading 0.91 g/t Au from 111 m down hole and ending in mineralization

• Hole S21-160D - 242.7 m grading 0.51 g/t Au from 41.9 m down hole

The Company expects that with the work at the main Nicho deposit nearing completion and anticipation of the open pit being developed on the pipe in the coming months the drilling focus will switch to other targets and mineralized pipes on the property in 2022.

During the year ended December 31, 2020, the Company completed the sale of a perpetual 3% net smelter royalty on the Santana property for a gross cash payment of $5,000,000.

In the first half of 2021, the Company announced the completion of all major civil works related to the construction of the gold recovery (carbon) plant, solution ponds and heap leach pad. The Company has selected TRIGUSA as it’s mining contractor for the Santana project and finalized a contract that will cover all mining activities for the project from drilling and blasting to transport and loading of mineralized material onto the pads for gold leaching operations. The Company’s judgement of the stage of the project has changed since it was determined by the Company that the Santana Project is now commercially viable and technically feasible and therefore all expenditures incurred on the project are being capitalized.

At the end of May 2021, the Company announced that it successfully executed the first planned production blast at the Nicho Norte pit at the Santana project. The initial blasting at Nicho Norte provided good fragmentation and further optimization is planned as blasting operations continue. The first material placed on the leach pad was used primarily to test the leaching circuit and commission the carbon plant while mining operations continue to expand as the Company takes a prudent approach to ramping up operations at Santana throughout the remainder of 2021 ahead of more steady state operations planned for 2022 and beyond.

In June 2021, all construction work at site was completed with the full phase 1 leach pad (approximately 100,000 m2) In Q3 2021, despite unusually heavy seasonal rainfall the site design proved resilient and mining

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activities continued to open up the Nicho Norte starter pit and provide greater working space for larger mining trucks and equipment to operate within it. Mining rates continued to increase through the period. The gold leaching systems were commissioned at the end of August utilizing an initial area of mineralized test material as the basis for final testing of the processing facilities.( see Company News Release dated September 8, 2021). As rainfall returned to more historical norms, gold concentration in the pregnant pond continued to rise in preparation for the commissioning of the carbon recovery plant. Mining activities continued through the end of Q3 2021.

In early Q4 2021, mine production rates approached initial design start-up levels on multiple days with efforts continuing to maintain these levels on a consistent basis during the remainder of the ramp up phase. The Company made an initial delivery of dore containing approximately 400 ounces of gold from the first shipment of carbon ( see Company News Release dated November 4, 2021).

Mining operations at the Nicho Norte starter pit are continuing to ramp-up and the Company has continued to plan for the eventual start of mining activities at the Nicho Main Zone.

Cerro de Oro

In September 2020 the Company finalized definitive option agreements with arm’s length parties to acquire 100% of the Cerro de Oro project comprising the Zacatecas I and Zacatecas II concessions near Concepcion del Oro, Zacatecas, Mexico . The acquisition of the two core claims in the district that contain a significant gold prospect increase the Company’s total claim holdings in the Concepcion del Oro district to approximately 6,500 ha in size.

The agreements convey 100% ownership to the Company with no underlying royalties subject to the Company meeting a schedule of payments. Failure by the Company to make any of the cash payments or share issuances would result in the property being returned to the vendors with no residual interest being retained by the Company. The payment schedule is as follows:

Amount(USD)	Installment Due Date
400,000 cash + 2,000,000 shares(b)	Paid on Closing
300,000 cash(a)+ 500,000 shares(b)	Paid
400,000 cash(a)+ 500,000 shares(b)	24 months from Closing
800,000 cash(a)+ 500,000 shares(b)	36 months from Closing
1,000,000 cash(a)+ 500,000 shares(b)	48 months from Closing

a) Installment payments will be in the form of cash. Alternately, should both parties agree a portion or the entire cash amount can be replaced with the issuance of an equivalent dollar value of shares. Shares, if issued, will be priced at prior days closing on the Exchange, ending on the Installment Date listed in the table above and in accordance with the rules and requirements of securities laws and the TSX Venture Exchange.

b) Payments in shares are subject to any and all restrictions on resale under applicable securities laws and TSX Venture Exchange requirements, typically being a hold period of four months and a day following the date of issue and any and all legending requirements. Should the Vendor elect to sell or dispose of any of the Payment Shares they will give Minera Alamos at least 10 business days advance notice to help facilitate such sales.

c) The Company paid $400,000 USD on signing of this agreement and the Company issued 2,000,000 shares on September 17, 2020. The fair value of these shares was $1,440,000.

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• d) Subsequent to the period ended September 30, 2021, the Company paid $300,000 USD and issued 500,000 shares. The fair value of these shares was $285,000.

In addition to the earn-in commitments in the table above, a final bonus payment of $1,000,000 USD will be payable to the Vendor upon the production of 50,000 ounces of gold from the Cerro de Oro project.

Mineral Resource Estimate

A technical report (NI 43-101 compliant) was prepared which estimates the Cerro de Oro Project, using a gold price of US$1,450/oz and a cut-off grade of 0.18 g/t, has an Inferred Mineral Resource of 48 million tonnes grading 0.41 g/t gold or 630,000 ounces of contained gold. Table 1 shows the Inferred Mineral Resource estimate for the Cerro de Oro Project. (Note to reader: unless stated all currency, references are in US dollars in this section)

Table 1 – Cerro de Oro Project, Estimate of Mineral Resources

Resource Category	Material **Type **	Cut-off Au(g/t)	Tonnes (t)	Au (g/t)	Au (oz)
Inferred	Oxide	0.18	48,000,000	0.41	630,000

Notes:

• The effective date for this mineral resource estimate is November 16, 2020. All material tonnes and metal values are undiluted.

• The mineral resource estimate was prepared under the supervision of Scott Zelligan, P.Geo, an independent consulting geologist.

• Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.

• The Mineral Resources presented herein 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 CIM Council November 29[th] , 2019.

• The number of metric tonnes has been rounded to the nearest million. Any discrepancies in the totals are due to rounding effects.

• A gold price of $1,450/oz was used in the calculation of the Mineral Resources.

• The limits of the Resource constraining pit shell assumed a mining cut-off based on a total operating cost (mining, milling, and G&A) of $8.80/tonne stacked, a metallurgical recovery of 70%, and a constant open pit slope angle of 45 degrees. This constraining pit shell contained a total volume of 59 million tonnes. Inferred resources are too speculative geologically to have economic considerations applied to them.

• The Inferred Mineral Resource is calculated assuming an internal cut-off grade of 0.18 g/t Au, which is considered reasonable and consistent for this type of deposit assuming a heap leach / open pit operation.

• A density of 2.55 t/m[3] was chosen to estimate the tonnage for the oxide materials. A density of 2.70 t/m[3] was used in fresh rock.

The Cerro de Oro Project is a porphyry gold system with associated skarn halos and disseminated and veinletcontrolled gold mineralization characterized by the development of magnetite and quartz veins (A and B veins). These veins developed during an early potassic alteration phase and were later overprinted by silica and sericite (phyllic overprinting) within the inter-mineral porphyritic intrusive phases that form part of a larger intrusive complex.

The inaugural resource estimate incorporates a total of 84 reverse circulation (RC) drill holes (7,112 metres)

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and twelve diamond drill holes (3,786 metres) including 50 RC holes (4,272 metres) drilled by Minera Mexico Pacific S.A. de C.V in 2017 and 2018 and 34 RC holes (2,840 metres) drilled by Noranda. All of the diamond drill holes were completed by Noranda from 1996 through 1998. Drilling to date has focused on the oxide zone with the majority of oxide holes drilled to depths of 60m to 160m. The diamond drill holes were drilled to depths of 80m to 645m to identify mineralization at depth.

La Fortuna

On May 4, 2016, the Company announced the completion of the acquisition of 100% of the mineral claims known as the “La Fortuna” gold project located in the State of Durango, Mexico from Argonaut Gold Inc. and its wholly owned subsidiary Durango Fern Mines, S.A. de C.V. The La Fortuna Gold Project includes the historic La Fortuna mine together with the surrounding concessions, totalling 994 hectares. The property is located in the northwestern corner of the State of Durango, Mexico, about 70 kilometers northeast of the city of Culiacan, Sinaloa.

In August 2016, the Company announced that it had acquired more than 5,400 hectares in additional mineral concessions surrounding the La Fortuna gold project. The new claims were acquired directly from the federal mining authorities in Mexico (Dirección General de Minas) with no payments to any other third parties, increasing the Company’s total land package to over 6,400 hectares.

In 2018 the Company announced the results of an independent Preliminary Economic Assessment (“PEA”). The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) by CSA Global Geosciences Canada Ltd (CSA Global) of Toronto, Canada. ( Note to reader: Unless stated all currency references are in US dollars). Please see the Company’s news release dated August 16, 2018, as filed on SEDAR for complete details.

PEA Summary

	US$	CDN$
Pre-Tax NPV(7.5%)	$103,800,000	$134,800,000
Pre-Tax IRR	122%	122%
After-Tax NPV(7.5%)	$69,800,000	$90,600,000
After-Tax IRR	93%	93%
Pre-Tax Payback Period	9 months
After-Tax Payback Period	11 months
Average Annual Production	43,000 oz Gold, 220,000 oz Silver, 1,000 t Copper (50koz GEO1)
Preproduction Capital	$26,900,000	$34,900,000
LOM Average AISC2	$440/oz	$571/oz
Mine Life	5years
Mill Throughput(avg. tpd)	1,100
Mill Grade & Recovery	3.68g/t Au(90% recovery)
Gold Price	$1,250/oz
Silver Price	$16/oz
Copper Price	$5,725/tonne
FX Rate(CDN$/US$)	0.77

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Notes:

1. GEO – Gold Equivalent Ounces

2. “AISC per ounce” is a non-GAAP financial performance measures with no standardized definition under IFRS; additional reference info at bottom of release

Base case prices for gold, silver and copper were assessed at values approximately 2%-7% below the three-year trailing average prices for each of the metals and below the majority of the publicly available forward looking estimates available as of July 2018.

PEA Cautionary Note:

Readers are cautioned that the PEA is preliminary in nature and there is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Additional work is needed to upgrade these mineral resources to mineral reserves.

Capital & Operating Cost Estimates

Initial and Sustaining Capital Costs (CAPEX)

Area	Initial($000)	Sustaining ($000)	Total($000)
Mining (contractor mobilizations)	$1,000		$1,000
Site Development/Infrastructure	$3,500		$3,500
Mineral Processing	$15,000	$7,100	$22,100
Tailings Management	$2,000		$2,000
Closure		$3,000	$3,000
Salvage Value		($3,000)	($3,000)
Contingencies(incl. owner’s costs)	$5,400		$5,400
TOTAL PROJECT	$26,900	$7,100	$34,000

*Note: Start-up working capital to be provided by concentrate purchasers on credit revolver basis.

Operating Costs (OPEX)

Area	$/tonne	$/unit
	Mineralized Material*2
Open Pit Mining	$11.80	$2.15	per tonne mined
Processing	$15.95	$22.89	per tonne milled
Stockpile/Ore Sorting1	$1.73	$4.00	per tonne sorted
G&A	$3.86	$5.54	per tonne milled
All-In OPEX	$33.34

Notes:

1. “Ore Sorting” as used in the context of the table above is a commercial term referring to sensor- based rock sorting technology and is not related to project resources/reserves. Ore sorting equipment is implemented in Year 3 for upgrading of mid-grade stockpiles

2. “Mineralized Material” represents mined material in excess of 0.8 g/t Au cut-off (includes direct milling material + stockpiled material to be upgraded via ore sorting prior to milling)

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Mineral Resources

This PEA is based on a new mineral resource estimate prepared for the La Fortuna project by Scott Zelligan, P.Geo., as part of the current report. The mineral resource estimate is based on the results from 125 core drill holes completed to date on the project. Wireframes were prepared using the drill hole information combined with geological interpretations of the deposit and validated through observations and sampling of accessible historical underground openings. Further details related to the current mineral resource estimate are presented in a later section. The table below outlines the total base case Mineral Resources, including those that were not included as part of the PEA mine plan.

Mineral Resource Estimates (1.0 g/t Au cut-off grade)

Resource Category	Au (g/t)	Tonnes (t)	Au	Ag	Cu	Au	Ag	Cu
	Cut-off		(g/t)	(g/t)	(%)	oz	oz	t
Measured	1.0	1,755,400	2.96	17.5	0.23	167,100	987,800	4,000
	1.5	1,309,700	3.55	19.5	0.25
	2.0	1,012,100	4.09	21.0	0.28
	2.5	795,300	4.59	22.4	0.30
	3.0	639,400	5.04	23.5	0.32
Indicated	1.0	1,714,300	2.59	15.5	0.21	142,800	854,400	3,600
	1.5	1,241,400	3.11	17.5	0.24
	2.0	886,400	3.65	19.2	0.27

Resource Category	Au (g/t)	Tonnes (t)	Au	Ag	Cu	Au	Ag	Cu
	Cut-off		(g/t)	(g/t)	(%)	oz	oz	t
	2.5	626,600	4.24	21.0	0.30
	3.0	458,500	4.80	22.2	0.32
Measured + Indicated	1.0	3,469,700	2.78	16.5	0.22	309,800	1,842,200	7,600
	1.5	2,551,100	3.34	18.5	0.24
	2.0	1,898,500	3.88	20.2	0.27
	2.5	1,421,900	4.44	21.8	0.30
	3.0	1,097,900	4.94	23.0	0.32
Inferred	1.0	156,300	1.72	8.5	0.09	8,600	42,700	100
	1.5	78,612	2.21	9.2	0.10
	2.0	38,059	2.73	11.1	0.12
	2.5	18,169	3.28	13.1	0.14
	3.0	7,589	4.04	15.6	0.18

Notes:

1. The effective date for this mineral resource estimate for La Fortuna project is July 13, 2018. All material tonnes and metal values are undiluted.

2. Mineral Resources are calculated assuming a cut-off grade of 1.0 g/t Au, which is considered reasonable and consistent for this type of deposit with open pit mining methods.

3. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of

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mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.

1. The mineral resources presented here were estimated using a block model with a parent block size of 5 m by 5 m by 5 m sub-blocked to a minimum block size of 0.6 m by 0.6 m by 0.6 m using ID3 methods for grade estimation as this method best represented the grade distribution in the sample data.

2. Due to the geometry of the deposit and the nature of the grade distribution, the estimation was divided between the upper and lower portions of the mineralized volume with search parameters optimized for each portion.

3. Individual composite assays were capped at the following values according to histogram/probability and decile analyses – 30 g/t gold, 60 g/t silver, 1% copper.

4. A density of 2.65 t/m[3] was chosen for the tonnage estimate. Data available from dry bulk density studies indicated an average density of 2.72 t/m[3] for mineralized material, while the quartz monzonite material had an average density of 2.61 t/m[3] . The value of 2.65 was chosen by averaging the two then rounding down to the nearest 0.05 interval to be conservative.

5. The mineral resources presented here 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 CIM Council May 10, 2014.

6. The mineral resource estimate was prepared by Scott Zelligan, B.Sc., P.Geo., and independent resource geologist of Coldwater, Ontario.

7. Gold price is US$1,250/ounce, silver price is US$16/ounce, and copper price is US$5,725/tonne.

8. The number of metric tonnes is rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects.

An initial review of the most recent exploration data from the La Fortuna gold project confirms potential for growth beyond the project’s current Measured and Indicated Mineral Resources. Three distinct zones of mineralization were identified along parallel structures that correspond to the primary regional faulting in this region of Mexico (NW-SE). In addition to the Fortuna Main Zone (and extensions) where the Company’s current resource is located, these also include the Ramada Zone and the PN Zone. All three areas contain numerous historical mine workings and have been sampled and mapped at surface. Defining the continuity of the mineralization throughout these extended zones will be the focus of the Company’s upcoming exploration activities.

Two permit applications were submitted and have been granted for the La Fortuna project. They consist of the Environmental Impact Statement (Manifestacion de Impacto Ambriental) and an Environmental Risk Study (Estudio de Riesgo Ambiental).

In May 2017, additional rights and options were granted on La Fortuna in connection with a private placement. The Subscriber and the Company entered into an investment agreement (the “Investment Agreement”) which provides for the following:

• Royalty Option : The Subscriber was granted an option to purchase up to a 4.0% NSR in the La Fortuna Property for total consideration of $9 million.

• Royalty/Stream Right : As long as the Subscriber holds common shares equal to at least 10% of the issued and outstanding common shares of the Company, on a non- diluted basis, the Subscriber will have a participation right on any and all royalties, streams, or similar interests granted on properties belonging to Minera Alamos.

The Company and Osisko Gold Royalties (“Osisko”) have mutually agreed to extend the option period of the

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La Fortuna royalty agreement until May 15, 2022. The extension provides additional time for the Company to evaluate project development sequencing following the start up of operations at the Santana gold mine and to maintain financing flexibility for the construction capital required for the building of a gold operation at the La Fortuna project.

Los Verdes

The Los Verdes property is located in the community of Santa Ana, municipality of Yecora, in the state of Sonora, Mexico. It is situated approximately 200 kilometres east-southeast of Hermosillo, the capital of Sonora and 190 kilometres northeast of Ciudad Obregon.

The Company is currently considering strategic alternatives for this project based on current industry/market expectations and a re-sizing of the planned operation.

RELATED PARTY TRANSACTIONS

Details of transactions between the Company and other related parties are disclosed below.

Related parties include the Board of Directors, close family members and enterprises which are controlled by these individuals as well as certain persons performing similar functions.

The remuneration of directors and key management of the Company for the nine month period ended September 30, 2021 and 2020 was as follows:

Aggregate compensation Stock-based compensation	2021 $ 2020 $
	339,000 362,000 - 266,000
	339,000 628,000

Included in accounts payable and accrued liabilities at September 30, 2021, payable to key management of the Company was $228,000 (December 31, 2020 - $138,000) in relation to outstanding compensation.

Included in accounts receivable as at September 30, 2021, is an amount of $262,233 (December 31, 2020 – $139,233) due from key management of the Company.

COMMITMENTS AND CONTINGENCIES

The Company is obligated under premises leases to pay rents as follows:

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	September 30,	December 31,
	2021	2020
MaturityAnalysis – contractual undiscounted cash flows	$	$
Less than one year	22,396	104,847
Year two	-	-
Total undiscounted lease liabilities	22,396	104,847
Effect of discounting	(3,398)	(3,462)
Present value of leasepayments	18,998	101,385
Less currentportion	(18,998)	(101,385)

ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES

Disclosure and use of critical accounting estimates

The preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. These estimates are reviewed periodically, and as adjustments become necessary, they are reported in earnings in the period in which they become known.

Readers should refer to Note 4 of the consolidated financial statements for the nine month period ended September 30, 2021, for a summary of critical accounting policies and estimates.

Accounting standards and interpretations effective during the current period

IAS 1 – Presentation of Financial Statements (“IAS 1”) and IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) were amended in January 2020 to refine the definition of materiality and clarify its characteristics. The revised definition focuses on the idea that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements. The amendments are effective for annual reporting periods beginning on or after November 1, 2023.

RISK FACTORS

Due to the nature of its business, the Company is subject to various financial, environmental and operational risks that should be carefully considered by readers. In addition to other information set forth elsewhere in the financial statements, readers should carefully review the following risk factors.

Future Capital Requirements Risk

The Company will require additional financing in order to grow and expand its operations. It is possible that required future financing will not be available or, if available, will not be available on favourable terms. If the Company issues new shares at any time to finance its operations or expansion plans, control of the Company may change and shareholders may suffer dilution of their investment. If adequate funds are not available, or are not available on acceptable terms, the Company may not be able to take advantage of opportunities, or otherwise respond to competitive pressures and remain in business.

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Exploration, Development and Mining Risk

Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate including, among other things, unprofitable efforts resulting not only from the failure to discover mineral deposits but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. Unusual or unexpected formations, formation pressures, fires, power outages, labour disruptions, flooding, explosions, cave-ins, landslides and the inability to obtain suitable or adequate machinery, equipment or labour are other risks involved in the operation of mines and the conduct of exploration programs. The Company will for the short term rely upon consultants and others for exploration, development, construction and operating expertise. Substantial expenditures are required to establish mineral resources and mineral reserves through drilling, to develop metallurgical processes to extract the metal from mineral resources and, in the case of new properties, to develop the mining and processing facilities and infrastructure at any site chosen for mining.

The Company's projects are at the exploration and development stage. The Santana project has entered into the development stage. The Los Verdes and La Fortuna projects have a defined resources determined by a Preliminary Economic Assessment to be potentially economic. Development of the Los Verdes and La Fortuna projects would follow only if additional favorable results, regulatory approval and financing are obtained.

The business of exploration for minerals and mining involves a high degree of risk. Few properties that are explored are ultimately developed into producing mines.

No assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that funds required for development can be obtained on a timely basis. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are: the particular attributes of the deposit, such as size, grade and proximity to infrastructure; metal prices, which are highly cyclical; and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals, environmental protection and others. The exact effect of these factors cannot accurately be predicted, but the combination of these factors may result in the Company not receiving an adequate return on invested capital.

The Company carefully evaluates the political and economic environment in considering any properties for acquisition and continued advancement of projects it holds, and its current strategy is to pursue projects in the mining friendly environment of Mexico. There can be no assurance that additional significant restrictions will not be placed on the Company’s projects and any other properties the Company may acquire, or its operations.

Environmental Risk

The Company’s projects are in remote areas of Mexico where mining has been carried out in the past and where it is currently being pursued. Its projects will be undertaken with the aim to achieve and maintain International Finance Corporation (“IFC”) Performance Standards, as they relate to environmental responsibilities, as well as to follow all applicable standards in Mexico. The Company has undertaken baseline environmental studies to define the status of the environment at its most advanced property and to identify mitigation measures appropriate for its operations. The Company realizes that there is a risk that an environmental condition may exist that could delay or prevent the project from advancing or producing, but

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no such factor has arisen in the Company’s investigations to date. The Company has an Environmental Policy that commits it to operating in an environmentally responsible manner, ensuring compliance by the Company and its employees with all applicable environmental regulations and commitments.

Foreign Operations Risk

Currently, the Company’s exploration projects are in Mexico and the Company manages a number of risks related to operating in a foreign jurisdiction, including security of rights and title, repatriation of funds, availability of a skilled and dependable workforce, access to permits for operation, and stability of the government. Management’s assessment of these risks is low as title to minerals is provided in law and is administered fairly and predictably, surface rights are obtainable by negotiation as guided by law, permits are available in a time frame provided by law and regulation, there is a skilled and available workforce, and the government has been openly supportive of foreign investment in general and expansion in the mining industry. Changes to these conditions could have a materially adverse effect on the Company’s business, financing opportunities, and results of operation.

Foreign Currency Risk

The Company is subject to foreign exchange risk as the Company has certain assets and liabilities, and makes certain expenditures, in Mexican Pesos and US dollars. The Company is therefore subject to gains and losses due to fluctuations in the Mexican Pesos and the US dollar relative to the Canadian dollar. The Company does not hedge its foreign exchange risk.

Sensitivity analysis

Based on management's knowledge and experience of the financial markets, the Company believes the following movements are reasonably possible over a twelve-month period.

As at September 30, 2021, the Company has monetary assets denominated in Mexican Pesos of approximately MXN $103,000,000 (December 31, 2020 –MXN $60,284,633). A 10% change in the value of the Canadian dollar relative to the Mexican Pesos would result in a corresponding change in net income approximately $642,000 (December 31, 2020 – $386,000) based on the balance of these amounts held in Mexican Pesos as at September 30, 2021.

The Company is exposed to market price risk on its marketable securities. A 10% change in the price of the underlying shares would result in a change in the fair value of the marketable securities by approximately $234,000 (December 31,2020 - $353,000).

The Company's functional currency is the Canadian dollar and major purchases are transacted in Canadian dollars, Mexican pesos and US dollars, which consist primarily of expenses. The Company’s operations are in Canada and Mexico, and the Company does not engage in hedging activities as there is no material difference between the initial transaction amount and the settled transaction amount in respect of foreign currency transactions, since the time between the date of the initial encumbrance and the date the outlay is settled, is less than 90 days.

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Credit Risk

Credit risk arises from the non-performance by counterparties of contractual financial obligations. The Company maintains substantially all of its cash with major financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Management believes that the credit risk concentration with respect to these financial instruments is remote.

Uninsurable Risk

In the course of exploration, development and production of mineral properties, certain risks, and in particular, labour disputes, fires, flooding and unexpected or unusual geological operating conditions including rock bursts, cave-ins, pit slope failures and earthquakes may occur. It is not always possible to fully insure against such risks and the Company may decide not to take out insurance against such risks as a result of high premiums or other reasons.

Future Profits/Losses and Production Revenues/Expenses Risk

There can be no assurance that significant losses will not occur in the near future or that the Company will be profitable in the future. The Company’s operating expenses and capital expenditures may increase in subsequent years as consultants, personnel and equipment associated with advancing exploration, development and, if warranted, commercial production of the Company’s projects and any other properties the Company may acquire are added as needed.

The amounts and timing of expenditures will depend on the progress of ongoing exploration and development, the results of consultants’ analyses and recommendations, and the rate at which operating losses are incurred, the execution of any joint venture agreements with strategic partners, and the Company’s acquisition of additional properties and other factors, many of which are beyond the Company’s control. The Company currently has commitments for operating leases that can be funded from working capital, and will manage its future commitments consistent with its financial position.

Although the Company may receive revenues from operations in the current year the Company may continue to incur losses unless until such time as the Company’s projects and any other properties the Company may acquire enter into commercial production and generate sufficient revenues to fund its continuing operations. The development of the Company’s projects and any other properties the Company may acquire will require the commitment of substantial resources to conduct the time-consuming exploration and development of the properties. There can be no assurance that the Company will generate any revenues or achieve profitability. There can be no assurance that the underlying assumed levels of expenses will prove to be accurate.

Competition Risk

The international mining industry is highly competitive and the Company will compete with other mining companies, many of which have greater resources and experience. Competition in the precious metals mining industry is primarily for: mineral rich properties that can be developed and can produce economically; the technical expertise to find, develop and operate such properties; the labour to operate the properties; and the capital for the purpose of funding such properties. Such competition may result in the Company being unable to acquire desired properties, to recruit or retain qualified employees or to acquire the capital necessary to fund its operations and develop its properties. The Company’s inability to compete with other mining companies

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for these resources would have a material adverse effect on the Company’s results of operation and business.

Key Employees Risk

The Company depends on a number of key employees, the loss of any one of whom could have an adverse effect on the Company.

Fluctuating Mineral Prices Risk

Commodity prices are highly volatile and factors beyond the control of the Company may affect the marketability of metals discovered, if any. Metal prices have fluctuated widely in the past. Since the Company is not a producing entity, price risk only potentially impacts the valuation of the Company’s projects and their carrying values in its financial statements, and the Company has not suffered impairment in any carrying values to this point in time.

Conflicts of Interest Risk

The Company’s directors and officers may serve as directors or officers of other natural resource companies or companies providing services to the Company or they may have significant shareholdings in other resource companies. Situations may arise where the directors and/or officers of the Company may be in competition with the Company. Any conflicts of interest will be subject to and governed by the law applicable to directors’ and officers’ conflicts of interest. In the event that such a conflict of interest arises at a meeting of the Company’s directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms. From time to time, several companies may participate in the acquisition, exploration and development of natural resource properties thereby allowing for their participation in larger programs, permitting involvement in a greater number of programs and reducing financial exposure in respect of any one program. It may also occur that a particular company will assign all or a portion of its interest in a particular program to another of these companies due to the financial position of the company making the assignment. In accordance with applicable laws, the directors and officers of the Company are required to act honestly, in good faith and in the best interests of the Company. In determining whether or not the Company will participate in a particular program and the interest therein to be acquired by it, the directors will primarily consider the degree of risk to which the Company may be exposed and its financial position at that time.

Share Price Volatility Risk

The market price of the Company’s shares is highly volatile and may be significantly affected by factors such as actual or anticipated fluctuations in the Company’s operating results, announcements of technological innovations, changes in estimates or analysis by securities analysts, new exploration projects by the Company or its competitors, government regulatory action, general market conditions and other factors.

OFF-BALANCE SHEET ARRANGEMENTS

The Company had no off-balance sheet arrangements as at November 25, 2021.

FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS

The Company’s excess cash reserves are held in an interest bearing Canadian bank account.

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OUTSTANDING SHARE DATA

Common Shares:

The Company has authorized an unlimited number of common shares, with no par value, of which 446,196,353 shares are issued and outstanding as of the date hereof.

Share Purchase Warrants:

As of the date hereof, there are no purchase warrants outstanding.

Stock Option Plan:

As of the date hereof, there are 25,219,500 options outstanding under the Company's stock option plan for employees, directors, officers and consultants of the Company.

QUALIFIED PERSON

Mr. Darren Koningen, P. Eng., Minera Alamos Inc.’s CEO, is the Qualified Person responsible for technical content of this document. Mr. Koningen has supervised the preparation of, and approved the scientific and technical disclosures utilized herein.

“Darren Koningen” Chief Executive Officer

“Janet O’Donnell” Chief Financial Officer

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