UNICO SILVER LIMITED — Capital/Financing Update 2021

Jan 7, 2021

ASX Announcement

Drilling resumes at Conserrat

8 January 2021

Highlights

• Drilling has resumed at the Conserrat project, a recent gold and silver discovery located in the Santa Cruz province of Argentina.

• Two drill rigs are on site including a diamond and reverse circulation (RC) rig.

• Drilling will commence at the Mia prospect to test a new gold and silver zone discovered late last year (4.1m at 1gpt Au, 644gpt Ag or 10gpt AuEq[1] from 175m)

• Mineralisation is interpreted to be a new mineralised shoot that is open in all directions

• Electrical Tomography (ET) geophysical surveying has been completed at the Patricia prospect and has defined several Mia-type targets for scout RC drill testing.

• Gold and silver assays for holes at Florencia and Emilia Este are delayed due to Christmas closures but are anticipated to be received in mid-January.

• Systematic regional exploration has resumed at Conserrat with additional geophysical surveys and surface sampling planned for Q1 2021.

Managing Director Todd Williams states: We are pleased to be back in the field following the Christmas break and look forward to further drilling at the new mineralised gold and silver zone discovered in hole DDH-MI20-065 late last year. The company is well funded for 2021 and is focused on making new discoveries at Mia and elsewhere within the project.

1Gold equivalent grades calculated at spot price of U$1945/oz gold and U$27.4/oz silver (Au + Ag/71.1)

E: info@e2metals.com.au

Non-Executive Director

ASX Announcement

Summary

E2 Metals (E2 or the Company) is pleased to announce that drilling has resumed at the Conserrat project following the Christmas and New Year break. Conserrat is located in the Santa Cruz Province of Argentina and is host to a new greenfields gold and silver discovery centered 25 kilometers along trend from AngloGold Ashanti’s Cerro Vanguardia mine (historical and current reserves 8.9Moz Au, 137Moz Ag).

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Figure 1: Conserrat Project

Upcoming plans

Two drill rigs are on site including a diamond and Reverse Circulation (RC) rig.

The work program will initially comprise follow up drilling at the Mia prospect to test a new gold and silver zone discovered at depth beneath known high-grade mineralisation ( see ASX announcement 22 December 2020, Drilling expands gold and silver mineralisation at Mia ).

Drilling resumes at Conserrat E2 Metals Limited • www.e2metals.com.au

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ASX Announcement

Previously reported gold and silver assay results for Mia and the new zone are in Figure 2:

DDH-MI20-065: 14m at 0.4gpt Au, 218gpt Ag (3.4gpt AuEq[1] ) from 169m, including

• 4.1m at 1gpt Au, 644gpt Ag (10gpt AuEq[1] ) from 175m, and

14m at 0.75gpt Au, 12gpt Ag (0.9gpt AuEq[1] ) from 194m

Preliminary interpretation is that the high-grade silver mineralisation intersected in DDH-MI20065 relates to a second mineralised shoot that has developed at the intersection of the Lara Vein with a separate strike-parallel structure. This shoot is interpreted to be distinct from shallow highgrade mineralisation discovered in October last year ( see ASX announcement, 28 October 2020, Exceptional gold and silver drill results from Mia ) which is shown to be plunging shallowly to the west (see Figure 3).

Initially, three diamond drill holes for 775m are planned to test the new gold and silver zone on a 75m by 50m grid, with the view to provide a preliminary interpretation on the extent and plunge of mineralisation to inform future infill drilling.

RC Drilling will also be completed early in the program at the Patricia prospect to test the northwestern extension of two mineralised structures identified from an Electrical Tomography (ET) survey completed late last. A similar ET survey was completed earlier at Mia ( see ASX announcement, 15 December 2020, further high-grade results at Mia ) and was instrumental in locating mineralised structures intercepted in hole DDH-MI20-065.

Systematic regional exploration has resumed at Conserrat with additional geophysical surveys and surface sampling planned for Q1 2021.

A large number of gold and silver assay results remain outstanding for the Florencia and Emilia Este prospects with laboratory turnaround times extended due to the Christmas and New Year’s break. All results are anticipated in mid-January.

For enquiries please contact:

Todd Williams Managing Director M: + 61 4 2222 5211

This announcement is authorised for release to the market by the Board of Directors of E2 Metals Limited.

Drilling resumes at Conserrat E2 Metals Limited • www.e2metals.com.au

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ASX Announcement

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Figure 2: Mia Prospect drill holes and gold silver results (Datum WGS UTM19S) Note to simplify map labels prefix “MI20” has been removed from collar IDs

Drilling resumes at Conserrat E2 Metals Limited • www.e2metals.com.au

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ASX Announcement

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Figure 3: Mia long section (Datum WGS UTM19S) Note to simplify map labels prefix “MI20” has been removed from collar IDs

Drilling resumes at Conserrat E2 Metals Limited • www.e2metals.com.au

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ASX Announcement

Streamline Competent Person Statement

This report contains information extracted from previous ASX releases which are referenced in the report. The Company is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and content in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Forward Looking Statement

Certain statements in this announcement constitute “forward-looking statements” or “forward looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause 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 statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the Company’s current expectations regarding future events, performance and results, and speak only as of the date of this announcement.

All such forward-looking information and statements are based on certain assumptions and analyses made by E2M’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; changes in commodity prices; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, and the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations.

Readers are cautioned not to place undue reliance on forward-looking information or statements. Although the forward-looking statements contained in this announcement are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this announcement and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this announcement.

Drilling resumes at Conserrat E2 Metals Limited • www.e2metals.com.au

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