SILVER GRAIL RESOURCES LTD.

Management’s Discussion & Analysis
for the Quarter Ended
December 31, 2024

2130 Crescent Road
Victoria, BC V8S 2H3
Tel: 778-430-5680 / Fax: 778-430-5681
E-Mail: [email protected]
Website: www.silvergrail.com

MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE QUARTER ENDED DECEMBER 31, 2024

The following management's discussion and analysis of the financial condition of Silver Grail Resources Ltd. ("Silver Grail" or the "Company") and results of operations of the Company, prepared as of March 3, 2025, should be read in conjunction with the unaudited condensed financial statements and the notes thereto for the nine months ended December 31, 2024 which were prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS"). All amounts are expressed in Canadian dollars unless otherwise indicated.

OVERALL PERFORMANCE

The Company is currently an exploration stage company engaged in the acquisition and exploration of mineral properties, primarily in the Stewart region of northwestern British Columbia.

Subject to the results of ongoing exploration and development activities, the Company may require additional capital in the future to continue these exploration and development programs and the administrative costs associated with them. As much as possible, the Company will continue to seek third parties to undertake options on its remaining properties. Again, in addition to the results of ongoing programs, general trends in the overall conditions of the mining industry will largely dictate the Company's ability to raise capital.

OUR BUSINESS

The Company's primary focus for the last 38 years has been exploration for gold and silver on its many properties in the Stewart region of northwestern British Columbia. It also owns outright a cobalt-manganese property in northern Vancouver Island as well as a 50% interest in a cobalt-nickel-magnesium property east of Harrison Lake.

The Stewart region, which forms the most prospective portion of the Golden Triangle of northwestern British Columbia, has seen several important developments in the past seven years. Foremost among these is Pretium Resources' decision to develop its $1 billion gold-silver mine at Brucejack Lake. After 5 years of production Pretium Resources was acquired by Newcrest Mining for $3.5 billion and thereafter Newcrest Mining was in turn taken over by Newmont Corporation, the latter now the largest gold mining company in the world.

Closer to Stewart, Ascot Resources is attempting to put the former Premier mine back into production. Ancillary deposits such as at the Silver Coin, Big Missouri, etc., are part of the Premier property package; Red Mountain, located further south at the headwaters of Bitter Creek is also owned by Ascot and will likely come on stream after Premier has been in successful commercial production for two years. Southeast of Stewart in the Kitsault River drainage, Dolly Varden Silver Corp. has consolidated a number of prospects including the Homestake gold/silver deposit and the formerly producing Torbrit and Dolly Varden silver mines. A neighbouring property, the Golddigger, owned by Goliath Resources is now in its third season of exploration and continues to produce good gold and silver grades from a series of stacked veins. Two of the Company's properties, the Tonga and the Fiji, lie between the Dolly Varden Silver properties and Goliath Resources. Silver Grail owns interests in eight properties in this area east of Stewart and north of Alice Arm. They are the Clone, Ram, Silver Baron, Tonga, Fiji, Gold Mountain, Midas and Konkin Silver properties.

The 2024 exploration season consisted largely of fieldwork carried out on the Ram and Clone properties. The Ram, which has been on the backburner for many years, received a fresh look owing to large areas of virgin ground opening up because of ablation (glacial meltback). Early indications suggest that porphyry copper-gold mineralization exists on the property. Samples taken in 2023 and 2024 on the Clone property, suggest the presence of another porphyry-related system, more likely at depth.

EXPLORATION

Stewart Region Properties

Clone Property

The Clone property is located about 16 kilometers southeast of Stewart, British Columbia. High-grade gold and gold-cobalt shear structures were identified on the Clone property in 1995 and subsequently drilled in 1996-1997. Although several high-grade intersections were obtained in the drilling, continuity of mineralization was erratic. A structural study carried out in 1998 has helped to elucidate controls for the gold mineralization.

An Aeroquest EM-Mag survey flown over the Clone property in early 2006 disclosed a number of geophysical anomalies. The most promising, dubbed the Derby zone, lies 800m northeast of the Main zone and consists of a number of parallel EM conductors (untested to date). During the 2006 field season, all seven holes drilled into the Main Zone intersected gold mineralization. One of the better holes returned 35.5 feet grading 0.178 oz/ton gold. Lingering snow at high elevations precluded a thorough investigation of the geophysical conductors detected during the airborne survey carried out earlier in the year. For details, please refer to the News Release dated November 9, 2006 on file with SEDAR.

A 3,000 ft. drill program was carried out by Elite Diamond Drilling of Revelstoke, BC for the 2008 program. Ten holes were drilled and results were reported on SEDAR on October 19, 2008. A two-phase drilling program was carried out in 2009, funded by optionee Canasia Industries. In the first phase 20 holes were drilled with fair to excellent results as detailed in the News Release dated October 5, 2009 on file with Sedar. In the second phase a further 15 holes were drilled with generally excellent results. Results for this second phase are outlined below:

Drill Hole #	From (m)	From (ft.)	To (m)	To (ft.)	Interval (m)	Interval (ft.)	True Width Coeff.	Gold (g/t)	Gold (oz/t)
21 incl.	11.89	39	19.81	65	7.92	26	0.94	30.37	0.886
	11.89	39	13.72	45	1.83	6	0.94	115.80	3.377
22	15.85	52	19.81	65	3.96	13	0.87	26.23	0.765
24	20.42	67	23.47	77	3.05	10	0.77	4.04	0.118
25	12.50	41	16.15	53	3.65	12	0.85	3.68	0.107
26	12.19	40	16.46	54	4.27	14	0.78	26.39	0.770
	21.03	69	26.21	86	5.18	17	0.78	15.83	0.462
27	15.85	52	17.98	59	2.13	7	0.85	10.81	0.315
28 incl.	10.67	35	23.47	77	12.80	42	0.92	44.75	1.305
	10.67	35	15.54	51	4.87	16	0.92	76.80	2.240
29	20.12	66	26.21	86	6.09	20	0.69	4.81	0.140
30	13.41	44	23.77	78	10.36	34	0.92	6.40	0.187
31	18.29	60	20.12	66	1.83	6	0.85	42.07	1.227
32	19.51	64	24.08	79	4.57	15	0.75	3.96	0.115
33	18.29	60	24.99	82	6.70	22	0.85	11.04	0.322
34	25.30	83	27.43	90	2.13	7	0.78	60.31	1.759
35	24.99	82	29.88	98	4.87	16	0.69	3.81	0.111

The holes were drilled between Trenches 4, 14 and 15 on the H-1 structure and were designed to guide a bulk sampling program. Dip angles for the holes were either minus 20, 30 or 40 degrees. For the purposes of calculating the true width coefficient, the zone was estimated to be vertically dipping. Mineralization is localized within highly silicified semi-massive to massive hematite-specularite and gold occurs as fine disseminations and is associated with the oxide mineralization. The major lithology is observed to be light grey to green andesitic pyroclastics intercalated with fine grained to aphanitic andesite. Clasts are subangular to angular, matrix supported, and range in size from 1-3cm. Quartz-calcite stockwork pervades the unit in moderate abundance.

In 2010, the Company carried out a 16-hole drilling program on the Clone and undertook a bulk sampling program, paid for by optionee Canasia Industries Inc. Results of the drilling program were encouraging and are on file with SEDAR, dated October 15 and 28, 2010. Altogether 38 tons were airlifted out of the property during the bulk sampling program with each ton carefully assayed. Average for the 38 tons came out to 2.0 oz/ton gold.

In 2011, the bulk sampling program consisted of 102 tons with an average grade of 4.0 oz/gold per ton which was removed from the site and shipped to Stewart by helicopter. Metallurgical studies have been completed which show that up to 76% of the gold can be liberated by a fine grind followed by gravity separation. An abbreviated continuation of the ongoing bulk sampling program was carried out on the Clone property in 2012. The Company sent some of the bulk sample for processing and payment was received in 2014.

In 2016, a diamond drilling program consisting of 7 holes was completed on the Clone property targeting two separate areas. Several of the holes had significant values in gold, the two best of which contained intersections averaging 6.43 metres of 17.83 g/t gold and 7.01 metres of 10.38 g/t gold (please refer to sedar.com, February 20, 2017, for full details).

Sky Gold Corp., formerly Sunvest Ventures, an optonee of the property, conducted a large-scale exploration program in 2019 on the Clone, including drilling of several prospects. Various targets were drilled, including some within the Main zone on the property which returned encouraging results. On November 6, 2019, Sky Gold served notice on the Company that it was not continuing with the option.

Teuton and Silver Grail have owned the Clone property jointly since first staking in 1994-5. During that time one of the optionees of the property earned a 50% interest, leaving Teuton and Silver Grail owning 25% each. The interest earned by the optionee was later put up for sale in 2019 when the owner changed its business from mineral exploration to biopharma; it was subsequently acquired by Teuton for $200,000. Silver Grail elected to pay Teuton $100,000 to acquire a 25% interest, which left both companies reverting to a joint ownership (50-50).

Further sampling was conducted in 2023 by Silver Grail/Teuton personnel on an area of the Clone property that had only been lightly explored in past years. A first batch of assay data from this work has shown the following results from 25 grab samples: copper values from 66 to 4,450 ppm with an average of 1,640 ppm (0.16% Cu); silver values, a range from 0.20 to 6.24 ppm with an average of 2.34 ppm, and; gold values, a range from 10 to 1,480 ppb gold with an average of 213 ppb gold. Further sampling results from extensions to the east, west and south suggest potential for a porphyry copper-gold system, although results at this stage are considered preliminary. Further sampling in 2024 has supported this thesis.

The Clone property lies along Kyba's "red line" which marks the boundary between Triassic and Jurassic rocks in the region. Proximity to this marker, according to the "red line" theory, enhances potential for discovering porphyry deposits. The red line continues southeast into the Surebet discovery of Goliath Resources where recent drilling suggests that gold and silver bearing structures found in many intersections are related to an intrusive at depth.

Konkin Silver Property

The Konkin Silver property is located 29 kilometers east of Stewart, British Columbia. Present access is by helicopter. Silver Grail and Teuton acquired the Konkin Silver property by staking in 1993-94, as part of a joint acquisition and exploration effort in the region surrounding the Red Mountain gold prospect. Prospecting in 1994 uncovered the central "Konkin Silver" showing, a bow-shaped structure carrying high silver values. It consists of carbonate, quartz, barite, galena, sphalerite and rare ruby silver and native silver in an arcuate structure spanning 35 metres. High silver values are most closely associated with galena which occurs as fine coatings on fractures, as coarse crystalline blebs and as disseminated grains. Maximum thickness of the feature appears to be in excess of 10 metres. Trenching of the Konkin Silver showing returned values up to 9.0m grading 34.94 oz/ton silver, 2.30% lead and 2.02% zinc.

Other similar, but smaller zones were found nearby. The Konkin Silver showing was drill-tested by Silver Standard under option in 1995, but several short holes failed to encounter high-grade silver mineralization conformable with surface results. The following year the property was returned to Teuton/Silver Grail. In 2002 a small program of rock sampling uncovered a new zone of low-grade, but extensive, silver mineralization. After a brief property visit in 1998, Ross Sherlock, PhD, confirmed that the Konkin Silver prospect was located within a VMS environment.

Teuton and Silver Grail acquired by purchase two additional claims within the boundaries of the Konkin Silver property. These claims cover two silver-bearing showings similar to those on the original ground.

During the 2007 field season, Teuton and Silver Grail resumed drilling on the Konkin Silver property, targeting the King Konk and Konkin Silver structures. The program has been completed and results are presented in the News Release on file with SEDAR dated March 5, 2008. In 2008, minor surface sampling was carried out on the property with mixed results. One day was spent on the property by a prospecting crew in 2017, but they were not able to reach the target area due to steepness of the ground.

A Geotech crew in 2018 flew a ZTEM survey over the Konkin Silver property as part of a larger survey including properties to the north. The Geotech report indicates that two areas on the property are prospective for the discovery of gold mineralization (Targets A-9 and A-10) and one area prospective for porphyry mineralization (Target P-3).

The Company drilled four holes on the Konkin Silver in 2021 testing a prominent geophysical anomaly, three of which intersected lengthy intervals of pyritic mudstones. Assays of core samples did not report economic levels of gold and silver. Plans for 2023 exploration include a property visit to test for new exposures along zones of ablation.

In 2023, the Company examined an area of the Konkin Silver property which had recently been exposed by ongoing ablation of local ice cover. This area, viewed from a helicopter, appears to be cut by a large number of barite veins and veinlets. The original Konkin Silver discovery, just to the south of this new zone, was made in a surface outcrop of barite. The Company was unable to find a mountaineering geologist to look at new barite occurrence in 2024.

Midas Property

The Midas claims, originally jointly owned with Teuton Resources, are situated 28 km east of Stewart, BC, and adjoin the Konkin Silver property to the north, and the Del Norte property of Teuton to the south.

The claims cover part of a long, northerly-trending contact zone between volcanic and sedimentary rocks which recent exploration has shown to be related to multiple zones of gold-silver mineralization. Willoughby Creek, which cuts through the property is a well-known placer gold bearing stream.

Prospecting in the 3-ounce area near the border of the Del Norte/Midas claims resulted in the 2003 discovery of quartz float boulders grading up to 3 oz/ton gold, near the same volcanic-sediment contact which hosts the LG mineralization some 6 miles to the north. One day of trenching in 2004 partially exposed a quartz vein mineralized with tetrahedrite.

In 2005, when Teuton optioned its northerly adjoining Del Norte property to Sabina Silver Corp. ("SBB"-TSX), the Midas claims were also included in the agreement.

In 2006, Sabina Silver drilled three holes into the 3-Oz showing on the Midas property, encountering promising intercepts of bulk tonnage-type gold mineralization spatially related to a gold-rich vein. The best result was in Hole SDN-06-02 which returned a wide interval of gold mineralization grading 2.52 g/t gold (0.07 oz/ton) over 32.4 meters. True width is estimated at 29.2 meters or 96 feet. Within this intersection, a sub-interval ran 26.77 g/t gold (0.78 oz per ton) over 0.7 meters.

In 2007, Sabina Silver drilled an additional 9 holes into the 3-Oz showing. Results are detailed in the News Release on file with SEDAR dated December 3, 2007. By spending $2,500,000 on the combined Del Norte-Midas property, Sabina earned a 50 interest.

In July 2014, Sabina entered into a purchase and sale agreement with Teuton whereby Teuton purchased all of Sabina's 50% interest in the Del Norte-Midas property. Ownership of the Midas property is now 75% Teuton, 25% Silver Grail.

A Geotech crew in 2018 flew a ZTEM survey over the Midas property as part of a larger survey including properties to the north. The Geotech report indicates that two areas on the property are prospective for the discovery of gold mineralization (Targets A-7 and A-8) and one area prospective for porphyry mineralization (Target P-2). No work was undertaken in 2019. A drill program was scheduled for the Midas and possibly also the adjoining Konkin Silver property in 2020. A drill permit was received for the combined properties

too late in the season to safely complete a program. The property was drilled during the 2021 season but the hole was stopped at 565m for mechanical reasons before reaching target depth at 800m.

Tonga-Fiji Property

The Company and Teuton jointly own the Tonga-Fiji property situated 24 kilometers north of Alice Arm, British Columbia. In 2005, a helicopter airborne EM-Mag survey was commissioned over the Tonga property, as a precursor to diamond drilling. Due to inclement weather, this survey was postponed until early January-February 2006. Results show a large zone of anomalous EM responses that is coincident with silver and molybdenum geochemical anomalies obtained in earlier soil, silt and talus fine surveys.

In September 2006, a drilling program was started on the Tonga property and completed in early October. Seven holes were drilled at various sites, testing geochemical and geophysical targets. Results are detailed in a News Release dated January 16, 2007, on file with SEDAR.

To the north of the Tonga, on the adjoining Fiji property surface prospecting in 2006 disclosed two promising zones containing gold and silver mineralization. This area was tested by drilling in 2007. Assay results were received and are detailed in the News Release on file with SEDAR dated March 5, 2008. During the 2019 field season, Company personnel discovered a new structure at least 300m long that had been exposed by retreating ice on the Fiji property. One sample taken from a lower portion of the zone returned encouraging silver values.

However, Homestake Resources (formerly Bravo Gold), owners of the adjoining Homestake property, continue to add tonnage to the resource on the two deposits occurring east of the common boundary between the Fiji and Homestake properties. In 2012, Homestake reported discovery of a new zone which lies only a few hundred meters east of the common boundary. This new zone was drilled by Homestake in 2012 with positive results. On July 11, 2016 Homestake was officially taken over by Auryn Resources which subsequently changed its name to Fury Gold Mines. The Homestake property was then purchased from Fury Gold by Dolly Varden Silver Corp., which completed the transaction in February of 2022. In 2023, Dolly Varden reported a new gold-rich zone was discovered northwest of their Homestake Silver deposit. Hole 23-389 reported 79.49 g/t Au and 60 g/t Ag over 12.45 meters including 1,335 g/t Au and 781 g/t Ag over 0.68 meters within a broad mineralized zone grading 15.26 g/t Au and 20.05 g/t Ag over 66.50 meters.

In 2023, Silver Grail/Teuton personnel carried out prospecting and rock geochemical sampling over areas of the Fiji recently exposed by meltback of local ice and snow fields.

Ram Property

The Ram property, jointly owned by Silver Grail and Teuton Resources, is located about 18km south-southeast of Stewart, BC, adjoining the Red Mountain gold property. Red Mountain has a Measured and Indicated resource of 1,271,000 tonnes grading 7.63 g/t gold and 21.02 g/t silver (782,600 total ounces of gold and 2,155,800 total ounces of silver). It is permitted provincially and federally. Owner Ascot Resources plans to put it into production after achieving profitability at the Premier mine, its main project. Ascot Resources poured its first gold bar at the Premier mine north of Stewart, BC, in April of 2024. An old road leads up Bitter Creek from Hwy 37A for 13 km; another 7 km of road is necessary to connect it to Red Mountain.

Although the Ram has been owned by Silver Grail and Teuton Resources for more than 30 years, it has received little attention. This year, 2024, a prospecting crew flew into the property to examine areas of ablation (glacial meltback). The crew immediately noticed that large, virgin areas had been exposed by retreat of ice and snowfields.

In the northern portion of the property, south-southwest of Red Mountain, a 400m long outcrop of porphyritic rock was discovered containing large sections with malachite staining (green copper carbonate formed from surface weathering of copper sulfides). Numerous grab samples and sawcuts taken from this body have shown chalcopyrite accompanied by pyrite, magnetite, K-feldspar, and occasionally, a bismuth mineral (the latter identified by XRF). The samples will soon be sent for assay before the end of the 2024 program. The composition of the porphyry intrusive suggests similarity to a suite of Goldslide Intrusions discovered to the north at the Red Mountain property; more work is required to determine if the comparison is valid.

A second large zone, the Mitch Zone, has been discovered southwest of the Malachite Porphyry, and features en echelon stringers of massive, coarse to medium-grained pyrite mineralization verging from a

few millimeters to 2-4 cm in size. In one area the stringers carry massive chalcopyrite to a maximum thickness of 5 centimeters. Grab samples and sawcuts were taken in this area.

The Mitch zone lies within a discrete magnetic anomaly which runs north-south, the same strike as the mineralization. This linear mag anomaly, is on the eastern edge of an oval-shaped total mag anomaly with a length of about 1km on its long, NNW-SSE axis. The shape and size of this oval-shaped magnetic anomaly is characteristic of that around a porphyry copper deposit but is not a definite sign that such a body exists. This geophysical information comes from an airborne VTEM survey flown by Teuton and Silver Grail in 2006.

The new finds at the Ram property are considered highly prospective for discovery of a porphyry copper-gold deposit, such as has been found elsewhere within the Golden Triangle. Much more work is needed to validate this assertion. Teuton and Silver Grail are contemplating expanded sampling and geological mapping, to be followed by an Induced Polarization survey. Targets identified by this work would then be followed up by diamond drilling. Pictures, figures, maps and videos related to the new Ram discoveries can be found at http/ramproject.gold.

Assays from the 2024 work on the Ram have now been received and are presently being compiled. Preliminary findings confirm that the Malachite Porphyry area contains copper-gold mineralization; some of the samples also contain molybdenum and rhenium.

Royalty properties in the Stewart Region

A number of properties have now been acquired by various optionees, leaving the Company with Net Smelter Royalty ("NSR") interests or a share in NSR interests. These are as follows:

Bay Silver Property

The Bay Silver property controls the old United Empire mine from which limited production of high-grade silver was seen in the 1920's. Ore from the mine was shipped to the valley floor below by way of a tramline, portions of which still remain on the property. The property contains numerous silver-rich showings some of them developed by hundreds of feet of tunnels. In 1983 and 1984, high-grade ore was trenched from silver-lead-zinc veins, first explored in 1919. The No. 4 zone consists of a 1.2-metre-wide vein which strikes northeast and dips 20 degrees southeast. The vein contains 0.6 metres of massive galena, sphalerite and tetrahedrite in the hanging wall and 0.6 metres of quartz with disseminated sulphides in the footwall.

In previous assessment reports, a 0.61-metre chip sample across the vein assayed two grams per tonne gold, 8679.7 grams per tonne silver, 20.3 per cent lead and 20.2 per cent zinc. The No. 3 zone is reported as being located about 100 metres south of the No. 4 zone. This shear zone contains long lenses of quartz mineralized with pyrite, pyrrhotite, galena and sphalerite. These lenses are up to 1.8 metres wide associated with a stockwork of sulphide stringers and are hosted in schist which has a strike of 150 degrees.

The lower showings, 300 metres east of the No. 4 zone, consist of two quartz-sulphide veins. The southernmost vein lies along the contact between a large granodiorite dike on the east and hornfelsed argillite to the west. The vein contains lenses of pyrrhotite, sphalerite, galena and tetrahedrite in a gangue of quartz. In a previous assessment report, a 0.91-metre chip sample across the vein assayed 42.30 grams per tonne gold and 1,273 grams per tonne silver. A second vein 120 metres to the north assayed 15.96 grams per tonne gold and 2,268 grams per tonne silver over a narrow width.

The property was originally jointly owned by Silver Grail Resources and Teuton Resources Corp. In August 2018, it was optioned to AUX Resources (formerly Auramex Resources). To acquire a 100% interest in the Bay Silver property, AUX Resources was required to make an initial payment of $10,000 and to issue 20,000 shares upon Exchange acceptance, to be divided equally between Teuton and Silver Grail. To complete the option, payments aggregating a further $110,000 and 80,000 shares are required over the next four years, again to be divided equally. Teuton and Silver Grail will retain a collective 2% NSR, one half of which can be bought down for $1,000,000, with a minimum advance annual royalty of $50,000 to begin after 7 years. Auramex has now satisfied all of the payments.

Silver Crown Property

The Company originally owned a 50% interest in eleven claims in the Bear River Ridge area known as the Silver Crown property, Teuton Resources owned the other 50% interest. These were optioned to AUX Resources (formerly Auramex Resources) in 2019 in a deal allowing AUX Resources to earn a 100%

interest by paying Teuton and Silver Grail $120,000 and 100,000 shares of AUX Resources over a four year period. A 2% NSR is payable, one half of which can be purchased for $1,000,000; a $50,000 annual advance royalty is payable after 7 years. Auramex has now satisfied all of the payments and will only be responsible for the NSR and advance royalty payments.

Mt. Boy Property

Silver Grail acquired the key claims of the historic Mountain Boy property (the "Mt. Boy Property") in the early 1990's. The property is situated 12 miles north of Stewart, BC, on American Creek. Several small, high-grade shipments of silver-bearing ore were shipped from the property in the 1920's and 1930's. Two veins, the Main and High-Grade, have been explored by a network of tunnels.

In the late 1990's, Silver Grail optioned the property to Mountain Boy Minerals Ltd. ("Mountain Boy") who subsequently earned a 50% interest by making substantial cash payments to Silver Grail. Mountain Boy constructed a road into the property from the highway, rehabilitated several adits, took large bulk samples and carried out diamond drilling programs.

In January 2004, the Company granted Mountain Boy an option to earn its remaining 50% interest for cash payments totaling $237,500 over four years. Subsequently, the Company revised its previous agreement with Mountain Boy and accepted $25,000 and 250,000 shares of Mountain Boy as a final payment on Mountain Boy's purchase of the Company's 50% interest in the Mt. Boy Property. The Company retains a 2% Net Smelter Royalty, which can be purchased by Mountain Boy for $1,000,000 until 18 months following the commencement of commercial production.

Additional Stewart Region Properties

The Company, jointly with Teuton, owns interests in several other properties throughout the Stewart region that were acquired in the previous years by staking. Minor prospecting was carried out on certain of these claims in 2004. Among these properties, the Silver Baron (formerly Silver Bell property) and Gold Mountain (formerly called the Bud) claims were all the subject of airborne geophysical surveys in early 2006. Several interesting targets were detected during the surveys and these were to be followed up by ground-truthing and sampling during the 2006 field season, but this was precluded by lack of finances. In 2022, a minor geochemical sampling program was carried out on the Silver Baron property. In 2023, the Company abandoned the Prosperity South property, jointly owned with Teuton Resources.

Silver Grail participated in a small way in Teuton Resources' option of its King Tut and Tuck properties to Pretium Resources in July 2015. Pretium requested that one of the Silver Crown claims be included in the option property because it needed surface rights under the Silver Crown claim for its powerline running from Brucejack Lake to the powerhouse at Divide Lake. It was agreed that the extra claim be added for an additional $100,000, bringing total consideration from $1,700,000 to $1,800,000. Silver Grail owns half of this claim jointly with Teuton, so it received its pro rata share of the $100,000 over the term of the option and has been fully paid.

New Westminster Mining District

Harrison Lake Area Property—Roman Property

The Roman property is owned 50-50 with Teuton Resources Corp. It was first acquired by staking in 1998 and subsequently optioned to Leader Mining in 2001. Leader was interested in examining the magnesium potential as the Roman property covers the western portion of 10km long ultramafic intrusive known to host the metal. Five holes drilled into the property all encountered magnesium with the best result equaling 44.5m of 25.79% Mg (or 42.77% MgO). All holes bottomed in mineralization.

The Roman property also has considerable potential for the discovery of nickel and cobalt deposits within the ultramafic intrusive. A 3D IP survey was conducted over an area previously disclosed as having several soil geochem Ni and Co anomalies. Three anomalous areas of chargeability were defined during the survey, related to the nickel soil geochemical anomalies. The Company and Teuton completed soil geochemical surveys and prospecting on the Roman property in 2018. This was designed to expand known anomalous areas of nickel and cobalt. Assay results were consistent with work done in earlier years (previously, cobalt values in soils have run from trace to over 1,300 ppm).

A program of rock geochemical sampling was carried out on the Roman property in 2022 and samples from one area confirmed a zone which carried grades from 0.20 to 0.26% nickel.

Cobalt Properties in British Columbia

In 2018, the Company acquired the Pacifico property located on northern Vancouver Island, based on the presence of highly anomalous levels of cobalt in stream geochemistry (as reported by BC Regional Geochemistry Surveys), including the highest value in the province. The claims were acquired for cost of staking from a private company owned by the President of Silver Grail; the private company will retain a 2% NSR. Preliminary stream sediment sampling carried out on the Pacifico property in 2019 indicated highly anomalous cobalt and manganese values from several stream courses, confirming and expanding upon results obtained in earlier silt surveys conducted by the government. An expanded geochem survey (stream sediment and soil sampling) was undertaken in 2020-2021: this work extended the anomalous areas defined in the previous stream courses and identified several new anomalous streams. In addition, a property wide airborne magnetometer survey was completed. Analysis of the airborne results by a geophysicist recommended four specific areas for follow-up. The property was visited in early 2021 by a geologist with petrographic expertise who wrote a favourable report as to its potential.

A small assessment program was carried out on the Pacifico recently. Results are currently being compiled.

RESULTS OF OPERATIONS

For the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023.

The net loss for the nine months ended December 31, 2024 was $21,048 or $nil per share compared to $31,761 (or $nil per share) for the nine months ended December 31, 2023. The difference was largely due to an increase in transfer agent and regulatory fees of $8,151 in the nine months ended December 31, 2023 as compared to $4,235 in the nine months ended December 31, 2024; also, an unrealized loss on marketable securities of $7,694 in the nine months ended December 31, 2023 was larger than the $3,800 unrealized loss on marketable securities in the nine months ended December 31, 2024.

SUMMARY OF QUARTERLY RESULTS

The following is a summary of our company's financial results for the eight most recently completed quarters:

	December 31, 2024 $	September 30, 2024 $	June 30, 2024 $	March 31, 2024 $
Total revenues	–	–	–	–
Net income (loss)	7,499	(24,691)	(3,856)	(149,247)
Earnings (loss) per share – basic and diluted	–	–	–	–
	December 31, 2023 $	September 30, 2023 $	June 30, 2023 $	March 31, 2023 $
Total revenues	–	–	–	–
Net income (loss)	(17,926)	(16,225)	2,390	(38,472)
Earnings (loss) per share – basic and diluted	–	–	–	–

Beginning in September 2013, management began a cost-cutting initiative which sharply reduced quarterly costs. Management and staff volunteered to forego their salaries in order to preserve capital. This cost-cutting initiative has been extended to the past quarters. For the most part, administrative expenses have been kept to under $20,000 a quarter. During those quarters where option proceeds and/or unrealized gains on marketable securities exceed administrative expenses, it is possible to show a small net income. In the quarters where share-based compensation charges are applied, a net loss in excess of the $20,000 average amount can occur.

In comparison to other venture companies, administrative costs are very much on the low end of the scale. In those periods where the Company shows earnings, it is almost always because of receipt of option proceeds in excess of capitalized costs.

LIQUIDITY AND CAPITAL RESOURCES

As at December 31, 2024, the Company had working capital of $77,631 compared to $197,210 as at March 31, 2024.

The Company anticipates it may need additional capital in the near future to finance ongoing exploration of its properties, such capital to derive from mineral property option payments and the completion of further private placements or exercise of outstanding warrants.

Nine months ended December 31, 2024 compared to the nine months ended December 31, 2023:

Operating activities

During the nine months ended December 31, 2024, the Company had net cash of $6,991 used in operating activities compared to $238,666 during the nine months ended December 31, 2023. Overall, the Company had limited operating activity and there was no significant change in business operations.

Investing activities

The Company used cash of $16,451 during the nine months ended December 31, 2024 for exploration and evaluation asset expenditures compared to $241 in the nine months ended December 31, 2023.

Financing activities

The Company had cash of $nil provided by financing activities during the nine months ended December 31, 2024 compared to $300,000 in the nine months ended December 31, 2023.

Capital Management

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash, marketable securities, and equity comprised of issued capital and share-based payment reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issues or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended March 31, 2024.

OFF BALANCE SHEET ARRANGEMENTS

There are no off-balance sheet arrangements to which the Company is committed.

TRANSACTIONS WITH RELATED PARTIES

(a) As at December 31, 2024, the amount of $2,951 (March 31, 2024 - $435) was owed to the President of the Company, Dino Cremonese, P.Eng, which is non-interest bearing, unsecured, and due on demand. During the nine months ended December 31, 2024, the Company incurred exploration and evaluation expenditures of $7,755 (2023 - $nil) to the President of the Company.

(b) As at December 31, 2024, the amount of $107,438 (March 31, 2024 - $14,080) was owed to Teuton which is non-interest bearing, unsecured, and due on demand. During the nine months ended December 31, 2024, the Company incurred exploration and evaluation expenditures of $80,731 (2023 - $191,700) to Teuton.

FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS

Fair Values

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at December 31, 2024 as follows:

	Fair Value Measurements Using
	Quoted prices in active markets for identical instruments (Level 1) $	Significant other observable inputs (Level 2) $	Significant unobservable inputs (Level 3) $	Balance, December 31, 2024 $
Marketable securities	25,581	–	–	25,581

The fair values of other financial instruments, which include cash, accounts payable and accrued liabilities, and amounts due to related parties, approximate their carrying values due to the nature and relatively short-term maturity of these instruments.

Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and marketable securities. The Company limits its exposure to credit loss by placing its cash and marketable securities with high credit quality financial institutions. The carrying amount of these financial assets represents the maximum credit exposure.

Foreign Exchange Rate Risk

Foreign exchange risk is the risk that the Company's financial instruments will fluctuate in value as a result of movements in foreign exchange rates. Foreign exchange risk arises from purchase transactions. The Company is not exposed to significant currency risk.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company currently settles its financial obligations using cash. The ability to do this relies on the Company raising equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs.

All of the Company's financial liabilities have maturities of one year or less. The carrying values of the Company's accounts payables and accrued liabilities and due to related parties on the statement of financial position equal their contractual cash flows.

Price Risk

The Company is exposed to price risk with respect to commodity prices. The Company's ability to raise capital to fund exploration and development activities is subject to risks associated with fluctuations in the market price of commodities.

ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended December 31, 2024, and have not been early adopted in preparing the financial statements.

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company's financial statements.

LEGAL PROCEEDINGS

There are no legal proceedings.

ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE

An analysis of material components of the Company's general and administrative expenses is disclosed in the unaudited condensed financial statements for the nine months ended December 31, 2024. An analysis of material components of the Company's exploration and evaluation assets is disclosed in the unaudited condensed financial statements for the nine months ended December 31, 2024 to which this MD&A relates.

During the nine months ended December 31, 2024, the Company expended $99,300 on mineral property expenditures, allocated as follows:

	$
Clone property, BC	17,652
Konkin Silver property, BC	9,338
Pacifico property, BC	12,749
Ram property, BC	52,605
Roman property, BC	6,397
Silver Baron	559
Total	99,300

DISCLOSURE OF OUTSTANDING SHARE DATA

Share Capital

As at March 3, 2025, the Company has 36,594,622 shares issued and outstanding.

Share Purchase Warrants

As at March 3, 2025, the Company has 3,000,000 share purchase warrants outstanding, with each warrant exercisable at $0.15 per common share expiring on November 13, 2025.

Stock Options

As of March 3, 2025, the Company had the following stock options outstanding:

Number of options outstanding	Exercise price $	Expiry date
877,000	0.15	July 13, 2026

OTHER

Additional information relating to the Company's operations and activities can be found by visiting the Company's website at www.silvergrail.com and by accessing the Company's news releases and filings on SEDAR+ at www.sedarplus.ca.

SILVER GRAIL RESOURCES LTD.
2130 Crescent Road
Victoria, BC V8S 2H3
Tel: 778-430-5680
Fax: 778-430-5681
E-Mail: [email protected]
Website: www.silvergrail.com

CORPORATE INFORMATION

DIRECTORS
Dino Cremonese, P.Eng., Victoria, BC
Robert Smiley, LL.B, West Vancouver, BC
Alexandra Cremonese, B. Com., Toronto, ON
Barry Holmes, MBA, Crofton, BC

OFFICERS
Dino Cremonese, P.Eng., LL.B
President and CEO
Robert Smiley, LL.B, CFO
Deborah Shilling
Corporate Secretary

Registered Office & Corporate Counsel
Beadle Raven LLP.
1090 West Georgia Street, Suite 600
Vancouver, BC V6E 3V7

Transfer Agent
Computershare Investor Services Inc.
3rd Floor, 510 Burrard Street
Vancouver, BC V6C 3B9

Auditors
Charlton & Company
Suite 630, 1111 Melville Street
Vancouver, BC V6E 3V6

Trading Symbol
SVG (TSX Venture Exchange)
KD7 (Frankfurt Stock Exchange)