SILVER DOLLAR
RESOURCES

Silver Dollar Resources Inc.

Management’s Discussion and Analysis

Financial year ended August 31, 2024

Containing information as of December 23, 2024

Silver Dollar Resources Inc. • 179 – 2945 Jacklin Road, Suite 416, Victoria, BC, V9B 6J9 • Telephone (250) 474-7999

Caution Regarding Forward-Looking Information

Certain of the statements made and information contained herein and in the financial statements is "forward-looking information" within the meaning of the Securities Act (British Columbia). This includes statements by Silver Dollar Resources Inc. (the "Company" or "Silver Dollar") concerning exploration results, including deposit size, quantities, grades and contained metals, which are generally made on the basis of estimations and extrapolations from a limited number of samples, drill holes and assays. These estimations and extrapolations are subject to uncertainties which include but are not limited to uncertainties in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres. Should one or more of these underlying estimations or extrapolations prove incorrect, actual results may vary materially from those described in forward-looking statements.

Forward-looking statements contained herein also include the Company's future operating costs and exploration plans at its mineral properties. These involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information including, without limitation, the ability of the Company to continue to be able to access the capital markets for funding necessary for operating costs, to acquire and maintain exploration properties and to carry out its desired exploration programs; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or the availability of essential supplies and services; and factors beyond the capacity of the Company to anticipate and control, such as the marketability of minerals, government regulations relating to health, safety and the environment, foreign currency controls, and the scale and scope of royalties and taxes on production. Should one or more of these risks or uncertainties materialize actual results may vary materially from those described in forward-looking statements.

Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Description of Business

Silver Dollar is a junior exploration company whose common shares are listed on the Canadian Securities Exchange and quoted on the OTCQX® Best Market. It is in the process of exploring its mineral properties and has not yet determined whether these properties contain ore reserves that are economically recoverable.

The Company owns the La Joya Silver Project and the Nora Silver-Gold Project located in Durango, Mexico, holds options to purchase the Ranger-Page Silver Project in Shoshone County, Idaho, and it owns the Longlegged Lake and Pakwash Lake gold properties located near Red Lake, Ontario.

The following discussion and analysis of the operations, results and financial position of the Company should be read in conjunction with the consolidated financial statements as of and for

the year ended August 31, 2024 and the notes thereto (the "Financial Statements"). The Financial Statements are incorporated herein by reference.

The Financial Statements have been prepared in accordance with IFRS Accounting Standards ("IFRS") and unless otherwise cited, references to dollar amounts are Canadian dollars. The Financial Statements were prepared on a going concern basis, which presumes the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. The Company had working capital of $2,340,670 as of August 31, 2024. The Company's ability to meet its obligations and maintain its operations is contingent upon additional financing or profitable operations in the future.

Overall Performance and Discussion of Operations

Fourth Quarter Results

During the fourth quarter of the Company's 2024 financial year, its consolidated net loss was $298,261, as compared with a $1,625,110 net loss for the same period last year. This $1,326,849 improvement was caused primarily by a $1,032,036 decrease in non-cash writedowns of exploration and evaluation assets, a $498,020 decrease in foreign exchange loss and a $72,541 decrease in non-cash losses upon settlement of a loan receivable. Offsetting this somewhat were a $230,963 increase in unrealized losses on securities and a $189,621 increase in professional fees.

Annual Results

During its 2024 financial year, the Company experienced a consolidated net loss of $830,619. This represents a $1,007,440 improvement from the $1,838,059 loss last year. The bulk of this change was caused by a $1,032,036 decrease in non-cash writedowns of exploration and evaluation assets. This was reduced by a $230,963 increase in unrealized losses on securities.

Cash Flow

As of its August 31, 2024 financial year-end, the Company had cash and cash equivalents of $2,454,191 as compared with $4,502,151 at the beginning of the financial year – a decrease of $2,047,960. Of this total, $628,070 of cash was used for its operations and $1,339,964 of cash was used for exploration of the Company's silver and gold projects and the acquisition of the Ranger-Page property options. Management expects exploration expenditures to continue at a similar pace in the coming quarters as it continues exploring its La Joya and Nora projects and it begins exploration of its new Ranger-Page Project.

For a detailed breakdown of exploration and evaluation assets for the Company's 2024 financial year on a property-by-property basis as well as for the preceding year, refer to the Consolidated Schedules of Exploration and Evaluation Assets accompanying the Financial Statements.

General

The Company is exploring its new Ranger-Page silver project in Idaho and its La Joya and Nora silver and gold projects in Durango, Mexico. With silver and gold prices near historic highs, management expects world political turmoil, international trade tensions and the consequential upward pressure on inflation to maintain strong precious metal prices. Accordingly, the Company plans to continue its strategy of advancing its mineral properties to add shareholder value.

The Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and

international circumstances. Recent geopolitical events and potential economic global challenges, such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company's business.

Selected Annual Information

	2024	2023	2022
Revenue	$ -	$ -	$ -
Net loss	(830,619)	(1,838,059)	(1,054,231)
Net loss per share	(0.02)	(0.04)	(0.03)
Total assets	15,855,702	16,031,803	16,557,334
Total non-current financial liabilities	-	-	-
Cash dividends declared	-	-	-

Summary of Quarterly Results

	2024				2023
	4th Quarter	3rd Quarter	2nd Quarter	1st Quarter	4th Quarter	3rd Quarter	2nd Quarter	1st Quarter
Revenue	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Income (loss) for the period	(298,261)	(137,395)	(132,662)	(262,301)	(1,625,110)	253,286	(168,862)	(297,373)
Income (loss) per share	(0.01)	(0.00)	(0.00)	(0.01)	(0.04)	0.01	(0.00)	(0.01)
Total comprehensive loss	(1,185,346)	(86,036)	(42,182)	(398,144)	(929,746)	(133,911)	(14,063)	(151,843)

Variations in operating loss from quarter to quarter typically result from increases in exploration and property acquisition activity. During periods of greater activity, professional fees, consulting fees, costs relating to regulatory approvals, and travel and promotion costs will typically increase.

During the third quarter of 2023, non-cash foreign exchange gains contributed to the marked increase in operating income, while during the fourth quarter of 2023, net loss increased when management deemed it prudent to write down the value of certain of its exploration and evaluation assets.

The differences between loss for the period and total comprehensive loss are the result of currency exchange differences on translating foreign operations.

The quarterly results summarized herein were prepared in accordance with International Financial Reporting Standards and are expressed in Canadian dollars.

Liquidity and Capital Resources

The Company does not yet generate positive cash flow from operations and is therefore reliant upon the issuance of its own common shares to fund its operations. The Company completed a non-brokered private placement of shares and warrants in October 2024 for gross proceeds of $1,500,000. As of the date hereof, the Company is adequately funded for the short- and medium-term. To continue to fund its long-term exploration plans, the Company must raise additional equity capital. There is, however, no certainty that such financings will be completed.

The Company has no debt obligations and no commitments other than as described herein and in its Financial Statements.

Management expects that the Company presently has enough working capital to fund operating costs through at least December 2025. However, additional working capital will be required to fund its future exploration plans and such exploration is dependent upon the availability of that additional working capital.

Mineral Exploration Activities

Ranger-Page Silver Project, Idaho, USA

Silver Dollar has commenced its initial drilling campaign at the recently acquired Ranger-Page Project in Shoshone County, Idaho (see news release of November 26, 2024). The Project area, encompassing the Government Gulch Option and Joint Venture Agreement and the Page Mine Mineral Rights Lease and Option Agreement, consolidates the western end of the Silver Valley mining corridor under a single operator for the first time.

Figure 1: Location of the Ranger-Page Project in the Coeur d'Alene Mining District

Project Highlights

A drill-ready project in a world-class silver district where over 90 mines have operated since the first major silver-lead-zinc discovery was staked in 1884.
Ideally situated ~1.5 kilometres (km) south of Interstate 90 Freeway and the town of Smelterville, the Project features power, water, year-round access to local infrastructure and a workforce skilled in exploration and mining.
The Project comprises two contiguous patented lode claim groups with surface access rights in place to conduct exploration activities.
The exploration permitting process is with the State of Idaho, with no requirement for federal permitting.
The land package covers six historic mines with the option to acquire ownership of the Project's mineral rights, which are not currently subject to any royalties.
Multiple exploration targets developed over the last two years that are ready to drill after the systematic use of modern exploration techniques for the first time.

Primary target areas are up- and down-plunge from historic underground mining, along strike where induced polarization (IP) surveys identify anomalies, and where surface trenching identified near surface mineralization.
Additional exploration targets have been identified away from historic mine infrastructure, using soil geochemical data, mapping, and ground IP survey data.
The Project borders the Bunker Hill mine where the restart of production is planned for the first half of 2025.

Figure 2: Looking NW from the Ranger-Page Project with I-90 and the town of Smelterville on the right

Geology

The Coeur d'Alene Mining District is one of the most significant silver mining regions in the world, known for its rich deposits of silver, zinc, and lead. The District has produced over 1.2 billion ounces of silver, 7 billion tons of lead, and 3 billion tons of zinc since initial discoveries were made along the south fork of the Coeur d'Alene River in the 1880s. Ore is produced from silver-lead-zinc veins hosted in clastic metasedimentary rocks of the Belt Supergroup. Orebodies show strong stratigraphic control, with most of the production coming from the Revett Formation.

The ore deposits of the Coeur d'Alene Mining District are hosted in structural features characterized by a complex network of faults and folds resulting from tectonic forces of diverse ages and movements. The District lies within the Lewis and Clark shear zone, a regional structural zone several kilometres wide, which includes the Thompson Pass Fault to the north, the Placer Creek Fault to the south, and the Osburn Fault that passes through the middle of the District. Numerous other subordinate district scale faults within the Lewis and Clark shear zone are related to mineralization and are important for exploration.

The 27 km displacement of the Osburn Fault runs through the District's most productive silver belts and along the northern boundary of the Ranger-Page Project. A network of seven secondary faults transverses the Project area, with the north-south trending Page Fault at the western end and the Crown Point Fault at the eastern end intersecting the Osburn Fault. Additional faults include the east-west-trending Curlew, 96, Buckeye and Spring faults and the southeast-northwest-trending Government Gulch Fault (Figure 4).

Mineralization is principally galena-sphalerite and tetrahedrite veins with quartz, carbonate and barite gangue mineralogy. The District is famous for its major discoveries of vast high-grade polymetallic vein systems, with veins that can be 0.5 km in strike length and 2.5 km in dip length.

Ranger-Page Project History

The land package includes six historic mines with the high-grade Page Mine being the largest. Operating from 1916 to 1917 and from 1926 to 1969, it was a top 10 producer in the District having produced over 1.1 billion pounds of combined lead-zinc and 14.6 million ounces of silver.

The Page mine was also the deepest of the six historic mines. It was mined to a depth of 2,644 feet below surface, with Blackhawk mined to 1,200 feet, Crown Point mined to 200 feet, and the remaining three mines (Ranger, Wyoming, and Curlew) only explored and mined near surface.

For comparison, one of the deepest mines in the region is Hecla's Lucky Friday Ag-Pb-Zn Mine. In operation since 1942, it is expected to produce approximately 5 million ounces of silver per year with proven and probable reserves of 78 million ounces of silver, 492,400 tons of lead and 229,380 tons of zinc as of December 31, 2023. The #4 Shaft project, an internal shaft at the Lucky Friday Mine, reaches 9,600 feet (>3 km) below surface and is an important part of the Gold Hunter/Lucky Friday expansion as it provides access to the highest-grade ore in the mine's history.

Figure 3: Ranger-Page claim groups, underground mine workings, and new target areas

Exploration Potential and Initial Drill Target

Major discoveries in the Coeur d'Alene Mining District tend to result from deep exploration down plunge of near-surface mineral showings. Narrow veins near surface can expand into multimillion-ounce ore bodies at depth, where vein structures intersect Revett formation quartzites and other favorable stratigraphy.

Consistent with the exploration history of the District, the Ranger-Page Project exhibits similar discovery potential near surface and at depth. This assessment is based on: (1) the extensive underground mining database, which indicates mineralization continues at depth beyond where previous mining ended; and (2) the latest results from geophysical and geochemical surveys, extensive trenching and sampling, and geological mapping that have identified new target areas with potential near-surface mineralization.

Figure 4: Showing network of faults and coloured IP anomalies dipping along faults toward the south

The initial drill target is the Crown Point Mine area, which is located within a kilometre of the Bunker Hill Mine (Figure 1) that was in production from 1885 to 1981 and is scheduled to restart production in the first half of 2025.

Based on the limited historical records available, mining at Crown Point started in the late 1800s with the first 3,000 tons shipped from the mine being high-grade supergene ores with up to 80 ounces per ton silver and 65% lead. As mining continued, out of the oxidized rocks, head grades dropped to more typical hypogene ore grades of 5 to 30 ounces per ton silver with 20% lead. After mining to 134 metres below ground surface, mining stopped in the 1950s reportedly in part due to fluctuating metal prices and complex lease agreements.

The 2022 IP survey identified a deep polarization anomaly down-plunge from the historic Crown Point Mine that has never been drill tested. The anomaly coincides with surface geochemical data and positive trenching results over the area, which has improved the confidence level in this target and will be the first to be drill tested in 2024. Three holes are initially planned to test the deep anomaly with the objectives of expanding the mineralized footprint 190 metres below the lowest mine workings and locating the deep projection of the Crown Point mineralized system along with the historically reported Shea Zone and the Osburn Fault Zone (Figure 5).

Figure 5: Crown Point target looking north with polarization anomaly and proposed drill holes

Acquisition Summary

The vendors assigned all Ranger-Page-related assets to Silver Dollar's wholly owned subsidiary for cash consideration of $300,000 and the issuance of 6,000,000 common shares in the capital of Silver Dollar. The shares are subject to a statutory four-month hold period and contractual escrow under the following release schedule:

Release Date	Release from Contractual Escrow
August 6, 2024	1,000,000 shares
February 6, 2025	1,250,000 shares
August 6, 2025	1,250,000 shares
February 6, 2026	1,250,000 shares
August 6, 2026	1,250,000 shares

10 -

If Silver Dollar exercises its option under the acquired Government Gulch Agreement it will grant the Vendors a royalty equal to 0.5% of net smelter returns from the Government Gulch property. Further, if Silver Dollar exercises its option under the acquired Page Mine Agreement, it will grant the vendors a royalty equal to 1% of net smelter returns from the Page Mine property; however, Silver Dollar may repurchase half of such royalty (0.5% of net smelter returns) at any time for $500,000.

The technical information herein has been approved by Dale Moore, P.Geo., an independent Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Figure 6: Headframe of the historic Page Mine

La Joya Silver Project, Durango, Mexico

Silver Dollar owns a 100% interest in the La Joya silver-copper-gold property. Optioned from First Majestic Silver in August 2020, Silver Dollar completed the acquisition in 2023 ahead of schedule (see news release of May 25, 2023). First Majestic acquired the Property in 2015 as part of its acquisition of SilverCrest Mines; however, no work was carried out on the Property between 2015 and 2020.

Located in the south-eastern portion of the State of Durango in the Mexican Silver Belt, the Property is an advanced exploration stage property consisting of 15 mineral concessions

totaling 4,646 hectares and hosting the Main Mineralized Trend (MMT), Santo Nino, and Coloradito deposits (Figure 8).

Figure 7: Location of the La Joya Project along with past-producing and operating mines in the area

The Property is situated approximately 75 kilometres (km) southeast of the state capital city of Durango in a prolific high-grade silver region with past-producing and operating mines, including SilverStorm's La Parrilla Mine, Industrias Penoles' Sabinas Mine, Grupo Mexico's San Martin Mine, Sabinas Mine, First Majestic's Del Toro Mine, and Pan American Silver's La Colorada Mine. Access and infrastructure near the Property are excellent (Figure 7).

Figure 8: Planview of the MMT, Santo Nino and Coloradito deposits, and Brazo and Central Dyke zones

12 -

Modern exploration activity began on the Property in 1977, which included extensive drilling by previous operators: Luisman from 1977 to 1997, Boliden from 1998 to 2001, and Solid Resources in 2006. SilverCrest acquired the Property in June 2010 and initiated property-scale mapping and sampling that led to an improved understanding of the skarn and control of the mineralization. Two phases of drilling followed between 2010 and 2012, a 5,753.70 metre (m) Phase I program comprised of 26 holes and a 25,812.65 m Phase II program comprised of 78 holes. A Phase III program of 2,698 m of in-fill drilling comprising 17 holes was also completed between February and March 2014. The SilverCrest drilling was relatively widespread in the MMT and the separate Santo Nino and Coloradito deposits (Figure 8 above, and Figure 9 and Photo 1 below).

Results from SilverCrest's Phase I and II programs along with 5,907.26 m of drilling by Luisman in 18 holes were included in the geological database used as source data for the mineral resource estimation (below) on the MMT and Santo Nino deposits. The mineral resource estimate was based on results from 122 drill holes totaling 37,473.61 m and had an effective date of December 16, 2012.

In December 2013, SilverCrest released a Preliminary Economic Assessment NI 43-101 Technical Report on the La Joya Property based on the mineral resource estimation (see the table below). The mineral resource estimate was reported to conform to CIM definitions for resource estimation at that time. However, a qualified person of Silver Dollar has not done sufficient work to classify the historical resource, and the Company is not treating it as a current mineral resource. Independent data verification and an assessment of the mineral resource estimation methods are required to verify the historical mineral resource.

| ZONE | Ag Eq
Cut-off gpt | Resource
Category | Tonnage
(000) | Ag
gpt | Au
gpt | Cu
% | Ag oz
(000) | Au oz
(000) | Cu lbs
(000) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| MMT | 15 | O
L
A
R
A
L
I
N
I
N | 120,600 | 23.7 | 0.18 | 0.18 | 91,900 | 707.9 | 466,500 |
| | 30 | | 67,600 | 34.7 | 0.23 | 0.25 | 75,400 | 519.4 | 377,400 |
| | 60 | | 26,100 | 58.5 | 0.30 | 0.42 | 49,100 | 255.8 | 240,100 |
| Santo
Nino | 15 | | 6,200 | 20.4 | 0.04 | 0.49 | 4,000 | 8.2 | 66,800 |
| | 30 | | 3,600 | 29.2 | 0.04 | 0.75 | 3,400 | 5.3 | 59,400 |
| | 60 | | 1,800 | 43.1 | 0.05 | 1.20 | 2,500 | 2.9 | 48,300 |
| Total | 15 | | 126,700 | 23.5 | 0.17 | 0.19 | 95,900 | 716.2 | 533,200 |
| | 30 | | 71,200 | 34.4 | 0.22 | 0.28 | 78,700 | 524.8 | 436,800 |
| | 60 | | 27,900 | 57.5 | 0.28 | 0.48 | 51,600 | 258.8 | 288,400 |

The historical resource estimate above for the MMT and Santo Nino Deposits is based on work done or collected by SilverCrest Mines, with an effective date of December 16, 2012.

Key assumptions, parameters, and methods used to prepare the historical mineral estimation:

Silver equivalency cut-off includes silver, gold and copper; and excludes lead, zinc, molybdenum and tungsten values.
Ag Au is 50.1, Ag Cu is 80.1, based on the then 5-year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper and 100% metallurgical recovery. All numbers are rounded.
Inferred Resources were estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
Drill hole spacing for the 122 holes (37,473.61 metres) used in the resource estimation was approximately 75 metres.
The mineral estimation was classified by EBA, a Tetra Tech Company, and was reported to conform to NI 43-101, 43-101CP, and CIM definitions for resources standards at that time.

Note: A qualified person of Silver Dollar has not done sufficient work to classify the historical resource, and the Company is not treating it as a current mineral resource.

Work to date by Silver Dollar has focused on the underexplored Coloradito-Noria area of the Property and is highlighted by the discovery of the Brazo Zone, approximately 1 km west of the Main Mineralized Trend or MMT (Figure 10). Silver Dollar has completed two phases of core drilling, with the Phase I program consisting of 11 holes totaling 2,424 m of drilling (See news releases of March 24, 2022, and May 4, 2022, for assay results) and the Phase II program, consisting of 17 holes totaling 3,428 m of drilling (See news releases of June 13, 2022, August 17, 2022, and October 25, 2022 for assay results).

Figure 9: Model of historical mineral resources for the MMT and Santo Nino deposits

Figure 10: Location of Silver Dollar's Brazo discovery and Phase I and II drill holes

Silver Dollar's latest exploration programs have focused on new target development primarily consisting of geological mapping with limited drill testing to follow up on data from the ground magnetic (MAG) survey conducted in 2022. As previously reported (See news release of December 15, 2022), the MAG survey identified three notable anomalies (Figure 11: S-1, S-2, and S-3):

S-1 is a parallel zone to S-2 located $400\mathrm{m}$ to the east in a generally blind area mostly covered with caliche (hardpan) with limited outcrops of limestone and hornfels. Samples assayed from this area have not returned any significant results to date despite the magnetic reactions exhibited by some of the samples.
S-2, located approximately $400\mathrm{m}$ east of S-3, is now known as the Central Dyke Zone where mineralization is found in association with a dyke that runs north-south to north-northwest through the central part of Cerro Coloradito. This is the priority area for drill target development with exploration results described in detail below.
S-3 is coincident with the Brazo Zone where drill testing in hole NOR-23-030 encountered intense and extensive alteration but did not intersect Brazo style mineralization. A sharp change in the angle of the intrusive contact underscores the importance of the structural mapping that has been taking place to better define future drilling.

Figure 11: Coloradito-Noria geology, MAG anomalies, and target areas

15 -

Central Dyke Zone

As previously reported (See news release of February 13, 2013), assay results from 156 channel samples along with 14 rock samples taken from outcrop and dumps have delineated the Central Dyke Zone over a strike length of 770 metres. The highest-grade assay came from a historical underground working called Hueco Grande, where sample #161 (Photos 1A and 1B) returned 7.01 g/t Au, 3,513.4 g/t (123.93 oz/t) Ag, 0.07% Cu, 5.33% Pb and 0.48% Zn.

Photo 1A and 1B: Sample 161 and where it was taken from the Hueco Grande historical working

Note: The rock sample results and the photographs above are selective by nature and may not be representative of the true grade or style of mineralization across the Property.

Ongoing work includes additional trenching and sampling (Photos 2A and 2B) to further expose, sample, and interpret the Central Dyke mineralization with the aim of refining and defining potential drill targets.

Photo 2A and 2B: Trenching and sampling in the Central Dyke Zone

Silver Dollar owns a $100\%$ interest in the La Joya property subject to a $2\%$ net smelter returns royalty on all minerals produced from the Property.

The technical information herein has been approved by Mike Kilbourne, P.Geo., an independent Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Photo 3: Reviewing historical drill core at the La Joya storage facility

Nora Silver-Gold Project, Durango, Mexico

Silver Dollar acquired a $100\%$ interest in the Nora Ag-Au property (the "Property") from Canasil Resources, subject to a $2\%$ net smelter returns royalty (See news release of February 8, 2024).

Figure 12: Location of the Nora property and other mines and deposits in the region

Located in the Eastern Sierra Madre sub-province in the transition to the high plateau of Mexico, the Property lies centrally within the "Silver Trend" that runs from the northwest to the southeast through Durango State. Significant deposits in the region include Endeavour Silver's Guanacevi mine and Fresnillo's San Julián mine on-trend to the northwest, with Endeavour Silver's Pitarrilla project approximately 50 kilometres (km) to the east.

17 -

Pitarrilla is one of the largest undeveloped silver deposits in the world and was discovered by Perry Durning and Frank (Bud) Hillemeyer, Silver Dollar's technical advisors.

The Property is located approximately 200 km north-northwest of the city of Durango, with excellent year-round access via Federal highway, paved road, and local dirt roads. Local infrastructure is available in the towns of Tepehuanes and Santa Maria del Oro and the city of Santiago Papasquiaro, all within 50 km of the Property.

The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins. Mineralization is typical of that found at many mines in the region, with gold and silver associated with galena, sulfosalt minerals, and lesser pyrite, sphalerite, and chalcopyrite.

Photo 4: Looking west into the Nora property with the Candy mine dump visible centre frame

Two principal veins are outcropping on the Nora property:

The Candy vein, which shows evidence of small-scale historical mining activity, is 0.50 m to 2.00 m wide and is exposed in discontinuous outcrops for over 900 m with the fault structure hosting the vein traced over 3 km.
The Nora vein is located 600 m northeast of the Candy vein with a parallel north-south strike and can be traced for 230 m along strike with widths of over 9.0 m.

In connection with the acquisition of the Nora property, Canasil waived certain obligations of Silver Dollar under the Nora Option Agreement on the basis that Silver Dollar encountered certain unresolved discrepancies in verifying the 2020 and 2021 drill results Canasil reported on the Nora property.

While analyzing and relogging drill core as part of its drill target development, Silver Dollar reassayed select core intervals from Canasil's previous drilling. A total of 161 core samples, plus 16 standards and blanks, were submitted to ActLabs in Zacatecas. This included 157 duplicates

of the original core samples from drill holes NRC-20-01, NRC-20-04, NRC-20-06, NRC-21-09, NRC-21-10, NRC-21-11, and NRC-21-12. The ActLabs check assay values received for lead, zinc, and copper closely mirror the original assay values Canasil received from ALS Global in Vancouver; however, the gold and silver values are significantly lower as follows:

Photo 5: Nora property looking north at the main outcrop of the Candy vein structure

For gold: of the 157 samples duplicated, Canasil reported 42 samples $>1$ g/t Au (1.23 - 43.7 g/t) including 18 samples $>5$ g/t (5.3 - 43.7 g/t), whereas Silver Dollar's re-assaying yielded only 3 samples $>1$ g/t Au (1.04, 1.75, and 2.30 g/t).
For silver: of the 157 samples duplicated, Canasil reported 44 samples $>200\mathrm{g / t}$ Ag (133 - 1,924 g/t) including 19 samples $>500\mathrm{g / t}$ Ag (504 - 1,925 g/t), whereas Silver Dollar's re-assaying yielded only 3 samples $>100\mathrm{g / t}$ Ag (129, 158, and 448 g/t).

The QPs from both companies discussed the situation and recommended a further analytical program be carried out to provide some insight into what may have caused the assay discrepancies. However, Canasil did not have the financial resources to contribute to the recommended program and alternatively offered to waive certain of Silver Dollar's consideration obligations under the Nora Option Agreement and transfer $100\%$ ownership of the Nora property to Silver Dollar for the consideration that had been provided to date (as detailed below), subject to a $2\%$ net smelter returns royalty (the "Royalty") with Silver Dollar having the right to buy back $1\%$ of the Royalty for $\$1,000,000$ . As of February 8, 2024, Silver Dollar had incurred a total of approximately $\$134,779$ in exploration expenditures on the Nora property, as full consideration for the acquisition thereof. Silver Dollar is not required to provide any further consideration to Canasil to complete the acquisition and the transfer of the Nora concessions to Silver Dollar has been initiated.

Silver Dollar previously reported selected highlights from Canasil's 2020 and 2021 drilling programs on the Nora property, which included the discrepancies noted above, in its news releases of May 24, 2023, June 20, 2023, and August 1, 2023, on its website, in its material change report dated April 20, 2023, and its Management's Discussion and Analysis of May 31, 2023. In addition to containing discrepancies, the Company determined that the disclosure did not conform to National Instrument 43-101 standards and should not be relied upon.

Accordingly, the Company retracts the non-compliant prior disclosure of results from Canasil's 2020 and 2021 drilling programs in respect of the Nora property from its disclosure record.

Figure 13: Nora property plan view with surface sample locations

As previously reported (See news release of April 16, 2024), fieldwork began in February 2024 as an initial step in the Company's re-evaluation of the Property. The focus of the work was geological mapping and sampling of priority anomalies (Figure 13). A total of 89 rock chip and channel samples and 33 soil samples were collected, including 41 samples from the primary Candy vein target.

Analytical results for all samples were received and highlights included:

Twenty-one samples grading over (>) 100 grams per tonne (g/t) silver (Ag), ten samples $>200\mathrm{g / t}$ Ag, four samples $>500\mathrm{g / t}$ Ag and two samples $>1,000\mathrm{g / t}$ or one kilogram per tonne Ag.
Sample R-053 (Photo 6A) returned 29.61 g/t gold (Au) over 0.35 metres (m), confirming the presence of high-grade gold in the Candy vein structure.
Samples RM-1009 (Photo 6B) returned 2,215 g/t Ag over 0.8 m and RM-1013 returned 1,212 g/t Ag over 1 m, confirming the presence of high-grade silver in the Candy vein structure.
Five samples returned grades $>1\%$ copper (Cu) with two $>3\%$ Cu, confirming the presence of high-grade copper in the Candy vein structure.

Elevated levels of zinc (7 samples >1% Zn) and lead (20 samples >1% Pb) are also encouraging as they seem to be the best pathfinders for geochemistry.

Photo 6A and 6B: Candy Vein Sample R-053 and Candy Vein Sample RM-1009

The table below summarizes additional highlights of the sample results. Note that grams per tonne is equivalent to parts per million (ppm), and 10,000 ppm is equivalent to one percent (1%).

Sample #	Rock Type	Thickness m	Au ppm	Ag ppm	Cu ppm	Pb ppm	Zn ppm
R-053	Vein	0.35	29.61	103	31,040	86,820	5,850
RM-1009	Rhyolite	0.8	2.26	2,215	33,420	18,340	28,120
RM-1013	Vein	1	2.05	1,212	17,710	42,390	13,540
R-071	Rhyolite	0.5	3.80	924	11,980	75,610	4,540
R-066	Vein	0.63	3.98	972	11,300	35,040	7,390
R-038	Rhyolitic Tuff	Selective	3.52	218	7,560	53,260	6,830
R-063	Vein	0.9	2.25	323	2,590	28,710	22,010
R-065	Rhyolite	0.5	2.50	487	547	7,000	539
R-074	Vein	0.6	2.54	79	2,530	76,490	539
R-005	BX	0.5	0.01	225	197	56,660	7,190
R-057	Vein	0.1	4.76	35	766	4,320	545
RM-1001	Rhyolite	0.5	0.82	203	778	27,160	4,030
R-007	Dump	Selective	0.01	234	155	37,520	4,420
RM-1010	Vein	0.3	1.76	154	1,570	12,570	2,250
R-060	Rhyolite	0.9	1.17	137	1,310	15,010	2,070
RM-1005	Rhyolite	0.8	1.38	34	7,570	12,390	4,510
R-059	Vein	1.5	0.16	99	3,450	21,250	15,160
R-068	Rhyolite	0.5	0.26	146	719	10,520	9,760
RM-1008	Vein	1.7	0.24	165	883	2,900	10,570
RM-1011	Vein	0.3	1.60	76	954	5,930	2,880
R-061	Vein	0.3	1.28	103	699	6,530	1,550
R-064	Rhyolite	0.5	0.12	102	544	11,260	16,080
R-069	Vein	0.7	0.12	101	1,050	10,620	12,520
RM-1000	Rhyolite	1	0.18	55	4,100	20,230	4,030
R-054	Vein	0.3	1.01	49	2,190	6,690	1,030
R-070	Rhyolite	0.5	0.07	113	347	5,010	9,440
R-067	Rhyolite	0.5	0.23	130	1,060	3,440	1,220
R-056	Rhyolite	0.6	0.15	88	1,480	13,820	1,370
R-019	Rhyolite	1	0.01	100	118	7,830	8,720

Note: The sample results and photographs above are selective by nature and may not be representative of the true grade or style of mineralization across the Property.

The technical information herein has been approved by Mike Kilbourne, P.Geo., an independent Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. The QP and the Company have not completed sufficient work to verify the information on the Nora Property, particularly regarding historical exploration, neighbouring companies, and government geological work.

Photo 7: Sampling the main Candy vein structure

Red Lake Area Properties, Red Lake, Ontario

The Red Lake area in northwestern Ontario has produced over 30 million ounces of gold and is one of Canada's most prolific gold mining districts. The discovery of gold under the roots of an upturned tree, by brothers Lorne and Ray Howey, in the summer of 1925 led to North America's last great gold rush and by 1926 over 3,000 people had converged on the Red Lake area to seek their fortunes.

Today, the Red Lake District comprises five communities, all built around 28 past-producing or currently operating gold mines. This mining-friendly, politically stable jurisdiction has a skilled labour force and infrastructure built to serve the mining industry. The latest Red Lake wealth-creating success is Great Bear Resources, and their Dixie Gold discovery, purchased in February 2022 by Kinross Gold for $1.8 billion.

Silver Dollar currently has two discovery-stage projects in the Red Lake Camp.

Pakwash Lake Property

Silver Dollar owns a 100% interest in the Pakwash Lake property, subject to a 1.5% net smelter returns royalty. Located approximately 30 kilometres (km) south-southeast of the town of Red Lake, the 4,252-hectare property is situated in a structurally active area of the Red Lake Mining Division where exploration activity was re-energized with the success of Great Bear (now owned by Kinross Gold) and the numerous high-grade gold discoveries on the Dixie property located

$\sim 7.5 \mathrm{~km}$ to the north. Other active neighbours in the area include BTU Metals who have been drilling untested IP anomalies on their Dixie Halo property for potential base metals (Cu-Zn) as well as gold and silver at their prospect called the TNT Target near the northern boundary of the Pakwash Lake property (see Figure 14).

Figure 14: Location of Silver Dollar's Properties and Neighbours (click on any image to enlarge)

A high-resolution airborne magnetic (MAG) survey completed by Laurentian Goldfields in 2011 identified the numerous geophysical features on the property including two dominant east-west trending MAG lineaments. These lineaments are interpreted to be the Pakwash Lake Fault Zone (PLFZ) and Sydney Lake Fault Zone (SLFZ). These faults are considered deep-seated crustalscale features from a 2006 deep penetrating regional lithoprobe seismic survey and important markers for exploration in the region (Figure 15) and warrant further investigation.

Figure 15: Pakwash Lake Project - Deep Penetrating Regional Lithoprobe Seismic Survey

The Pakwash Lake and Sydney Lake faults and splays run through the property (Figure 16) and orogenic gold deposits are typically associated with crustal-scale fault structures. However, the most abundant gold mineralization is hosted by lower-order splays from these major structures (Kerrich et al. 2000).

Figure 16: 2011 MAG Survey with Interpreted Tracing of the PLFZ and SLFZ Structures Crossing the Property

Longlegged Lake Property

Silver Dollar owns a $100\%$ interest in the Longlegged Lake property, subject to a $1.5\%$ net smelter returns royalty. Located approximately 30 kilometres (km) south of the town of Red Lake, the 2,597-hectare property is situated in a structurally active area of the Red Lake Mining Division $\sim 15$ km south of the Dixie Gold property. Other active neighbours in the area include BTU Metals, who staked a large claim package adjoining the northern boundary of the property (Figure 14) to expand their Dixie-Halo property (referenced above); and Golden Goliath Resources, who reported their Kwai property to the north-east of the property (Figure 14) along the PLFZ has been found to host a repetition of the same sequence of rocks that hosts the LP Zone on the Dixie property.

Silver Dollar completed a heliborne high-resolution magnetic (MAG) survey on the property that identified dominant northeast-southwest MAG lineaments interpreted to be the deep-seated crustal-scale PLFZ (Figure 17). The MAG survey, which included a total of 1,837 line-km on 25-meter line spacing, also identified many curved lineaments (Figure 18) which could be related to shearing and folding where dilation zones may have enabled mineralization to occur.

Figure 17: Longlegged Lake Project - Deep Penetrating Regional Lithoprobe Seismic Survey

Figure 18: 2019 MAG Survey with Interpreted Tracing of the PLFZ and Curved Lineaments Crossing the Property

To further evaluate the anomalous gold in soils along the PLFZ, Silver Dollar completed prospecting and soil sampling of areas interpreted to be prospective to host gold mineralization. A till sampling program of 30 samples was completed to assess the potential of gold in the basal till down-ice direction of the PLFZ. Gold grains within the samples were classified according to

their shape and size to help determine proximity to the potential source, and the sampling results were integrated into the exploration model.

In other locations within the Red Lake area, sulfide mineralization is associated with gold values so an induced polarization (IP) survey was carried out on two areas (Figure 19) selected using the airborne MAG to identify potential sulfide mineralization within or adjacent to the PLFZ. Interpretation of the IP data defined several anomalies with elevated chargeability and coincident elevated resistivities, with the East Grid having significantly higher chargeability values than the West Grid. Future target development work may include prospecting and sampling of the highest-priority anomalies to identify any mineralization at surface, along with soil geochemical surveys over the areas.

Figure 19: IP Survey Areas

The technical information herein has been approved by Mike Kilbourne, P.Geo., an independent Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Outstanding Share Data

As of the date hereof, the Company has 56,752,355 common shares issued and outstanding.

Also as of the date hereof, the Company has options outstanding which may be exercised to purchase a total of 2,550,000 shares. Of this total, 400,000 options may be exercised at $0.59 per share until June 26, 2025, 1,850,000 options may be exercised at$ 1.75 per share until December 14, 2025, and 300,000 options may be exercised at $1.75 per share until March 9, 2026.

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The Company also has warrants outstanding which, as of the date hereof, may be exercised to purchase up to 3,089,600 shares at $0.40 per share until October 29, 2026.

Transactions with Related Parties

During its 2024 financial year, the Company paid $60,000 to Anacott Capital Corporation, a corporation controlled by the Company's Chief Executive Officer, in respect of the management and administration of the Company.

Changes in Accounting Policies Including Initial Adoption

New Accounting Standards and Interpretations Recently Adopted

The following standards were adopted by the Company effective September 1, 2023:

Amendments to IAS 8: Definition of Accounting Estimates

These amendments clarify how companies distinguish changes in accounting policies from changes in accounting estimates, with a primary focus on the definition of and clarifications on accounting estimates. The distinction between the two is important because changes in accounting policies are applied retrospectively, whereas changes in accounting estimates are applied prospectively. Further, the amendments clarify that accounting estimates are monetary amounts in the financial statements subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy. The adoption of these amendments had no material impact on the Financial Statements.

Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies

These amendments continue the IASB's clarifications regarding applying the concept of materiality. These amendments help companies provide useful accounting policy disclosures, and they include: requiring companies to disclose their material accounting policies instead of their significant accounting policies; clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and do not need to be disclosed; and clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material. The IASB also amended IFRS Practice Statement 2 to include guidance and examples on applying materiality to accounting policy disclosures. The adoption of these amendments reduced the note disclosures in the Financial Statements.

New Accounting Standards and Interpretations Not Yet Adopted

Amendment to IAS 1: Presentation of Financial Statements

Amendments to IAS 1 clarify the requirements for classifying liabilities as current or noncurrent. The amendments provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. These amendments are effective for reporting periods beginning on or after January 1, 2024. The Company does not expect there will be a material impact on the future financial statements.

IFRS 18 Presentation and Disclosure in Financial Statements

IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies' financial performance for better investment decisions:

a) Three defined categories for income and expenses – operating, investing and financing – to improve the structure of the income statement and require all companies to provide new

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defined subtotals, including operating profit;

b) Requirement for companies to disclose explanations of management-defined performance measures that are related to the income statement; and
c) Enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes.

This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company will be evaluating the impact on future financial statements.

Financial Instruments and Other Instruments

The fair value of the Company's accounts payable and accrued liabilities approximates their carrying value due to the short-term nature of these instruments unless otherwise noted. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

The Company monitors and manages the risks relating to its financial instruments through analysis of exposures by degree and magnitude of risks. These risks include credit risk, liquidity risk and market risk.

Credit risk

Credit risk refers to the risk that another entity will default on its contractual obligations resulting in financial loss to the Company. As of August 31, 2024, such contractual obligations comprised cash and cash equivalents held with high creditworthy financial institutions in the amount of $2,454,191. Management considers this risk to be negligible.

Liquidity risk

Liquidity risk refers to the risk that the Company will not be able to meet its financial obligations when they become due or can only do so at excessive cost. As of August 31, 2024, the Company had working capital of $2,340,670. Management anticipates that the Company will be able to meet its obligations as they become due.

Market risk

Market risk is the risk that the fair value of a financial instrument will fluctuate because of currency risk, interest rate risk and other price risk.

Currency risk

Currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate as a result of changes in foreign exchange rates. The Company has operations in Canada, Mexico and United States and incurs expenditures in Canadian dollars, Mexican pesos and United States dollars. The fluctuation of the foreign exchange rates will have an impact upon the results of the Company. The Company does not hold substantial financial assets and liabilities in currencies other than the functional currency of each individual entity. A fluctuation in the exchange rates between Canadian dollars, Mexican pesos and United States dollars of 10% would result in a $15,400 change in the Company's cash and a nominal change in profit or loss. The Company does not use any techniques to mitigate currency risk.

Interest rate risk

Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Interest earned on cash is at nominal interest rates, and therefore, the Company does not consider interest rate risk to be significant. The Company has no interest-bearing

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financial liabilities.

Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk. Management considers this risk to be negligible.

Fair Value Hierarchy

Financial instruments recorded at fair value in the Consolidated Statements of Financial Position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1 – valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – valuation techniques based on inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3 – valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

The following table presents the financial instruments recorded at fair value in the Consolidated Statements of Financial Position, classified using the fair value hierarchy described above:

Assets as at August 31, 2024	Level 1	Level 2	Level 3
Cash and cash equivalents	$2,454,191	$ -	$ -

Other Information

Additional information relating to the Company is available from the Company's website at https://silverdollarresources.com and on SEDAR+ at www.sedarplus.ca.

ON BEHALF OF THE BOARD

/s/ Michael Romanik

Michael Romanik, President