sunshine silver mining &...

Sunshine Silver Mining & Refining

The Next North American Silver Major…

Precious Metals Summit

September 2017

Sunshine Silver Mining & Refining: Where the Owners and Managers Really Live Above the Shop

“The reception we receive for SSMRC should be excellent. As an institutional-qualityvehicle it has it all: high-quality assets in safe jurisdictions, with a management team andsupportive shareholder base that have proven track records of creating extraordinary valuefor investors, while executing successful strategies in socially and environmentally friendlyways.

The Sunshine Mine is a brand… as well as the iconic jewel of American silver mining. Fromthe highest grade large primary silver mine in the world’s safest jurisdiction to an end-product refinery that will produce silver bars certified for direct delivery to COMEX, theSunshine complex is slated to be the only completely autonomous and fully integratedsilver mining operation in the United States.

Los Gatos is one of the most exciting virgin discoveries of silver and zinc in a NAFTAjurisdiction and, in partnership with Japan's DOWA Mining and Metals, will be SSMRC'sfirst producing mine. The combination of Los Gatos and the magnificent Sunshine deposithas created a branded, blue-chip development profile that is second to none. With arealistic target of more than 15 million ounces of high-quality North American silverproduction per annum, SSMRC is the perfect vehicle for silver and zinc investors who wantto check all the boxes on people, assets and strategy.”

Thomas S. Kaplan, Chairman of The Electrum Group LLC, lead investor of SSMRC, as well as NOVAGOLD Resources Inc.

Building a World Class Silver Mining Company: Two High Grade, Development Assets in Premier Silver Regions

3

A Company-Maker

• New greenfield district-scale silver, gold, zinc and lead discovery

• Owning all required mineral rights and surface rights

• In the right location: Chihuahua State, MX. Mexico is the world’s largest silver producer

• Fourteen mineralized zones defined to-date

• JV with Dowa, owners of Japan’s largest zinc smelter, signed December 2014

• NI 43-101 compliant feasibility study completed in December 2016

• Expected to produce 9.6 million AgEq ounces annually

• Strong community support

Los GatosChihuahua, Mexico

Redevelopment of a World-Class Deposit

• One of the world’s highest-grade large primary silver deposits1

• Former prolific silver producer with an end-product silver refinery certified for direct COMEX delivery

• In the right location: The Silver Valley, Idaho; the largest silver producing region in the United States

• Near-term production and cash flow: Phased growth annual production target of 10 million Ag ounces annually

• Existing infrastructure: Water, power and access

• Have all environmental permits to begin mining operations

• Reduced operating risk given historical production and ongoing mine improvements

• 2011-2014 exploration discovered additional near-surface resources and significant potential for further discovery

Sunshine MineIdaho, USA

1 Defined as primary silver projects with at least 100 million oz. of MI&I resources, inclusive of P&P reserves.

Electrum and Affiliates, 72.0%

Liberty Metals & Mining, 12.0%

Municipal Employees'

Retirement System of Michigan, 5.9%

Tocqueville Asset Management, 3.1%

Management and Directors, 1.6%

Private Investors, 5.4%

Sunshine Silver Mining & Refining: Corporate Structure

4

An institutional shareholder base, led by The Electrum Group, a value-added leader in natural resources investing for more than two decades.

Shares Outstanding: 73.9 million

Warrants: 0.0 million

Options & DSUs: 5.6 million

Fully Diluted: 79.5 million

Debt: US$0 million

Cash (est. at September 30, 2017): US$24.5 million

Sunshine Silver Mining & Refining: Proven Management

5

Stephen OrrExecutive Chairman & CEO

39 years experience

▪ President and CEO, Ventana Gold Corp (through to sale of company)▪ CEO, OceanaGold Limited; ▪ Managing Director Australia & Africa Operations, Barrick Gold Corporation; ▪ President, Homestake Canada Inc.▪ Joined Sunshine Silver in 2011

Roger JohnsonCFO

36 years experience

▪ Vice President and Chief Accounting Officer, Newmont Mining Corporation ▪ Senior accounting/finance positions at Kennecott Utah Copper Corporation, Pasminco Zinc,

and Coopers & Lybrand▪ Joined Sunshine Silver in 2011

Phil PyleVP Exploration & Mexico

36 years experience

▪ Exploration Manager, Linear Gold▪ MIM Exploration, BHP Minerals and AMAX Exploration▪ Joined Sunshine Silver in 2008

John KinyonVP Operations

35 years experience

▪ VP & General Manager - Kensington Operation, Coeur Mining▪ VP Operations - New Zealand Operations, OceanaGold▪ General Manager, Homestake/Barrick Gold’s Eskay Creek Operation▪ Joined Sunshine Silver in 2012

Luis Felipe HuertaProject Manager18 years experience

▪ Project Manager Continental Gold, Buritica Project▪ Project Manager, Fortuna Silver, San Jose Project▪ Project Superintendent, Compania Minera Atococha▪ Joined Sunshine Silver in 2015

Abyl SydykovMetallurgical Manager

21 years experience

▪ Plant/Operations Manager, Anglo Asian Mining Company (Gedabek Gold Mine, Azerbaijan)▪ Corporate Metallurgist, Endeavour Silver▪ Process Manager – Pitarrilla Project, Silver Standard▪ Chief Metallurgist – Alamo Dorado Project, Pan American Silver▪ Joined Sunshine Silver in 2015

Sunshine Silver Mining & Refining: Experienced Board of Directors

6

Stephen OrrExecutive Chairman & CEO

▪ CEO of Sunshine Silver Mining & Refining Corporation

John Ellis▪ Retired Chairman and CEO of Anglogold North American Inc., Independence Mining Company,

Hudson Bay Mining and Smelting Corp.

Marc Faber▪ Publisher of The Gloom, Boom & Doom Report; author of Tomorrow’s Gold – Asia’s Age of

Discovery▪ Director of NOVAGOLD Resources Inc. and Sprott Inc.

Wayne Kirk ▪ Formerly of Thelen Marrin Johnson & Bridges and VP/General Counsel for Homestake▪ Director of Electrum Ltd.

William Natbony

▪ Former CEO and Executive Chairman of The Tigris Group Inc.▪ Former senior partner at Katten Muchin Rosenman LLP▪ Director of Gabriel Resources Ltd. and several privately-held companies

David Peat ▪ Former VP/Controller of Newmont ▪ Former VP/CFO of Homestake

Eric Vincent▪ CEO of The Electrum Group LLC▪ Former President of Ospraie Management

Sunshine Silver Mining & Refining: A Proven Track Record of Creating Value

7

Through smart strategic acquisitions and exploration success, multiple milestones achieved over 10 years

Los

Gat

os

Pro

ject

Sun

shin

e M

ine

&

SSM

RC

Co

rpo

rate

➢ Initial acquisition of Los Gatos

➢ Discovery of the Cerro Los Gatos deposit

➢ Filed NI 43-101 resource estimate for Cerro Los Gatos and Esther

➢ Amapola discovery

➢ Completed NI 43-101 resource estimate for Amapola discovery

➢ Filed updated combined Los Gatos NI 43-101 resource estimates

➢ Initial Los Gatos JV discussions with Dowa

➢ Signed LOI for Los Gatos with Dowa

➢ Acquisition of Sunshine Mine

➢ Acquisition of additional surface rights to consolidate land position

➢ Merger of Los Gatos into Sunshine Silver Mines

➢ Liberty Mining & Metals acquires 15% of Sunshine Silver Mines Corp.

➢ Discovery of Sunshine Vein Extension

➢ Filed initial Sunshine Mine NI 43-101 resource estimate and PEA

➢ Acquired Big Creek Refinery

➢ Purchased adjacent mineral rights from Americas Silver

➢ Los Gatos metallurgical work and Conceptual Economic Assessment completed

➢ Signed Los Gatos Joint Venture agreement with Dowa Metals & Mining

➢ Updated Sunshine Mine NI 43-101 PEA

2007 2008 2009 2010 2011 2012 2013 2014

➢ Obtained drilling permits and surface access rights

➢ Commenced exploration drilling at Los Gatos

2015

➢ Reactivated exploration

➢ Initiated Feasibility Study & decline development to access the mineralization

2016

➢ Dowa earns 30% interest in the Los Gatos Project

➢ Completed NI 43-101 compliant feasibility study

Los Gatos Silver-Zinc-Lead Project: Discovery of a New High Grade Epithermal District in Mexico’s Silver Belt

Los Gatos Silver-Zinc-Lead Project:Located ~150km South of Chihuahua City, Mexico

9

Los Gatos Silver-Zinc-Lead Project:New Epithermal Precious Metals District

10

• ~103,000 hectares of mineral rights in 17 contiguous concessions

• No historical workings or previous exploration

• Exploration began in 2006, blind discovery of Cerro Los Gatos & Esther zones in March 2009

• ~5500 hectares of surface rights covering three known deposits (Cerro Los Gatos, Esther and Amapola) and additional exploration lands

• 11 other zones with ore grade intersections

• Only 15km of the 100km of vein strike extent identified thus far has been tested

Los Gatos Silver-Zinc-Lead Project:Dowa Metals & Mining Co.

11

• Founded in 1884, Dowa has been developing mineral resources in order to secure stable, long-term sources of raw materials for its Akita Zinc / Kosaka Smelting & Refining complex and its Onahama Smelting & Refining complex, both in Japan

• Dowa’s Akita Zinc is the largest zinc refinery in Japan, producing about 200,000 tons of eletrolyticzinc per year, as well as electrolytic cadmium, concentrated sulfuric acid, gold, silver, copper and a number of minor metals (i.e. indium, gallium, germanium)

• Dowa is currently involved in the operation of three mines, from which it imports zinc and copper concentrates to feed the Akita Zinc and Onahama Smelting & Refining Complex:

• a 30% interest in the Tizapa Zinc Mine in Mexico (operated by Penoles),

• a shared 50% interest in the Huckleberry Copper Mine in British Columbia (operated by Imperial Metals) ,

• a shared 25% interest in the Gibraltar Copper Mine in British Columbia (operated by Taseko Mines).

Los Gatos Silver-Zinc-Lead Project:Dowa Metals & Mining Joint Venture

12

• In December 2014 Dowa Metals & Mining Co., Ltd. (Dowa) agreed to purchase 30% of the Los Gatos Project by paying US$50 million over two years

• Dowa will have life of mine rights to purchase the Los Gatos zinc concentrate at market rates. Lead concentrate will be sold to an independent smelter

• All earn-in proceeds funded the exploration, feasibility and early development work at Los Gatos. Feasibility was completed by year-end 2016 by TetraTech

• Sunshine Silver Mining & Refining Corporation is the project operator and manages all activities

Decline Construction Infrastructure Prep

• Ramp construction to access the mineralization

• Enables trial mining and bulk sample collection

• Provides exploration drilling platforms for further resource delineation

Technical Studies

Completion of

• Geotechnical

• Hydrogeological

• Metallurgical

• Environmental studies

• Final mine design

Drilling

• Infill drilling within the current resources to confirm continuity

• Extension drilling to expand the mineral resources

• Power line permitting

• Remaining strategic land purchases

• Final infrastructure design

$20.2 Million $6.8 Million $7.7 Million $15.3 Million

Los Gatos Silver-Zinc-Lead Project:Cerro Los Gatos Zone

13

Since Aug 2014, total Ag Eq M&I resources at the Los Gatos project increased by +170%

Source: Dec-16 datapoints per Tetra Tech Feasibility Technical Report; See appendix for resource details & metal prices used for Ag Eq calculations

35

4

51

25

13

23

0 20 40 60 80 100 120

Dec-16

Aug-14

Silver (Ozs Millions)

Measured Indicated Inferred

M&I Resource Increased +196%& Total Resource Increased +90%

407

66

767

402

325

674

0 200 400 600 800 1000 1200 1400 1600

Dec-16

Aug-14

Zinc (Lbs Millions)



195

25

379

189

219

327

0 100 200 300 400 500 600 700 800 900

Dec-16

Aug-14

Lead (Lbs Millions)



40

5

63

37

29

54

0 20 40 60 80 100 120 140

Dec-16

Aug-14

Gold (Ozs Thousands)



Los Gatos Silver-Zinc-Lead Project:Cerro Los Gatos Zone

14

500 metres

Looking Southwest

Ag Au Cu Pb Zn Ag Eq Ag Au Cu Pb Zn Ag Eq

(Mt) (g/t) (g/t) (%) (%) (%) (Moz) (koz) (Mlbs) (Mlbs) (Mlbs) (Moz)

2P Reserves 9.81 247 0.30 0.10% 2.28% 4.75% 604 78.0 94.6 21.6 493.0 1,027.1 190.6

Measured 3.40 318 0.37 0.10% 2.60% 5.43% 726 34.8 40.4 7.5 194.9 407.0 79.4

Indicated 5.80 274 0.34 0.12% 2.96% 6.00% 725 51.1 63.4 15.3 379.0 767.2 135.2

Total Meas. & Ind. 9.20 290 0.35 0.11% 2.83% 5.79% 725 85.9 103.8 22.8 573.9 1,174.2 214.6

Inferred 3.20 128 0.28 0.14% 3.10% 4.60% 514 13.2 28.8 9.9 218.7 324.5 52.9

Total Resources 12.40 248 0.33 0.12% 2.90% 5.48% 671 99.0 132.7 32.7 792.6 1,498.7 267.4

Ore

Tonnes

Grade Contained Metal

Source: Tetra Tech Feasibility Technical Report; See appendix for Ag Eq calculation details

Los Gatos Silver-Zinc-Lead Project:Over 1.6 Kilometers of Development Completed

15

Decline Progress Toward the NW Zone

Decline Portal

Location of Trial Mining in the Central

Zone

Decline Progress Toward the NW Zone

Decline Portal

Location of Trial Mining in the Central

Zone

Decline Progress in the Central Zone

Los Gatos Silver-Zinc-Lead Project:Decline from Surface Intersected Vein on Sept. 14, 2016

16

NW Zone Central Zone

SE Zone

Location of Decline-Vein Intersection

~2.5km

Looking Southwest

Looking Northeast

Los Gatos Silver-Zinc-Lead Project:Trial Mining & Bulk Sample

17

Explosive Round

Ag g/t Pb % Zn %

Round 1 1082.9 10.97 11.82

Round 2 739.3 11.4 11.22

Round 4 571.3 5.95 6.86

Round 5 309.3 3.41 5.55

Round 6 472.7 4.64 4.73

Wtd. Avg. 635.1 7.27 8.04

50 t bulk sample sent to Pilot Processing Plant at SGS Lakefield Research Facility

1

2

4

5

6Results Meaningfully Higher!

Resource model predicted that the trial mining area would average 307

g/t silver, 1.8% lead and 3.3% zinc

Los Gatos Silver-Zinc-Lead Project:Feasibility Study Mine Plan

18

1 Production figures shown represent payable production

2 Feasibility Study based on Ag Price = $20.16/oz., Zn Price = $1.01/lb., Pb Price = $0.92/lb., Au Price = $1318/oz.

2,500 tonnes per day

Mining Rate

11.5 YearsInitial 2P Mine Life

$316 mmExpected Pre-Production Capex

$12.13/Ag oz.All-in co-product

sustaining cost

$5.21/Ag oz.All-in by-product

sustaining cost

$63 mmAverage free cash flow per year2

4.0 YearPayback period

Average Annual Production (100%)1

9.6 mm AgEq Oz.

5.2 mm oz. Ag, 50 mm lb Zn, 37 mm lb. Pb

2016 Feasibility Study Mine Plan Drift and Fill Ore Tonnes 6,735,233

Total diluted and Recovered Ore tonnes 9,808,433 Transverse Ore Tonnes 1,574,123

Diluted NSR $ Value/t 186.48 Longitudinal Ore Tonnes 1,499,076

Diluted AgEq g/t 501.18

Diluted Ag g/t 247.39 Total Waste Tonnes 2,586,170

Total Cash Costs/t 115.22

Diluted Zn% 4.75Production

by Zone

Diluted Pb% 2.28 NW Total Diluted and Recovered Tonnes 3,073,200

Diluted Cu% 0.1 Central Total Diluted and Recovered Tonnes 5,510,086

Diluted Au g/t 0.3 SE Total Diluted and Recovered Tonnes 1,225,147

Los Gatos Silver-Zinc-Lead Project:Feasibility Study Metallurgy

19

• Primary Crusher → 2-Stage Grinding → Conventional Flotation to produce a Lead (high silver) and a Zinc concentrate

• The samples have A×b values of 45-77 and SCSE values of 7.66-9.56 kWh/t, categorizing the samples as softer per JKTech database of SMC tests, which reduces grinding costs

• The samples have BWI intermediate hardness values of 15.3-18.9 kWh/t

• 50 tonne bulk sample from test mining stope shipped to SGS Lakefield for pilot plant testing

• 40-50% of the tailings returned underground as paste backfill, remaining tailings to tailings storage facility (zero discharge)

Los Gatos Silver-Zinc-Lead Project:NI 43-101 Feasibility Study Results

20

Proven & Probable Reserve (including dilution):

Tonnes

Silver Grade

Zinc Grade

Lead Grade

Gold Grade

9.8 million

247 g/t

4.8%

2.3%

0.3 g/t

Initial Mine Life (based on current Proven & Probable reserves) 11.5 years

Production Rate (annual):

Average Tonnage Milled

Recovered Silver

Recovered Zinc

Recovered Lead

Recovered Gold

0.85 million tonnes

5.8 million ozs

64.8 million lbs

39.8 million lbs

5.8 thousand ozs

Preproduction Capital Cost $316 million

Annual Free Cash Flow1 $63 million

Project Payback Period 4.0 years

AIl-In Sustaining Cost (AISC):

Co-Product Basis

By-Product Basis

$12.13/Ag oz

$5.21/Ag oz

Project NAV1:

@ 7.5% discount rate

@ 5.0% discount rate

@ 0% discount rate

$142 million

$209 million

$399 million

Cerro Los Gatos Feasibility Study Summary (100% Basis)

1 Feasibility Study based on Ag Price = $20.16/oz., Zn Price = $1.01/lb., Pb Price = $0.92/lb., Au Price = $1318/oz.

Los Gatos Silver-Zinc-Lead Project:NI 43-101 Feasibility Study NPV Sensitivity

21

Every $5.00 increase in the silver price adds ≈$125 million to the NPV

Every $0.20 increase in the zinc price adds ≈$42 million to the NPV

Note: Analysis based on a 100%project-level basis, a 5% discount rate & 18.5 MXN/USD exchange rate; Metal price assumptions are Ag = $20.16/oz, Au = $1,318/oz, Zn = $1.01/lb & Pb = $0.92/lb

$0

$100

$200

$300

$400

$500

$600

$700

$15.00 $17.50 $20.00 $22.50 $25.00 $27.50 $30.00 $32.50 $35.00

Aft

er-

Tax

NP

V(5

%)

($M

)

Silver Price ($/oz)

Project Sensitivity to Silver Price

$100

$150

$200

$250

$300

$350

$0.90 $0.95 $1.00 $1.05 $1.10 $1.15 $1.20 $1.25 $1.30 $1.35 $1.40 $1.45 $1.50

Aft

er-

Tax

NP

V(5

%)

($M

)

Zinc Price ($/lb)

Project Sensitivity to Zinc Price

Los Gatos Silver-Zinc-Lead Project:Financing for Construction Completed!

22

Debt Facility

Equity Financing

Total

SSMRC (70%) $147M $74M $221M

Dowa Metals & Mining (30%) $63M $32M $95M

Los Gatos Preproduction CAPEX $210M $106M $316M

Los Gatos Project Financing (Millions):

Los Gatos Silver-Zinc-Lead Project:$210M Project Finance Facility Approved

23

Issue • $210 million term loan

Use of Proceeds • To fund ≈ 67% of Los Gatos Mine $316M initial construction cost

Security• All project assets including share pledge from the JV sponsors

(Sunshine & Dowa)

Tenor • 10.5 years

Interest Rate/Fees• LIBOR + margin of 4.35% (includes annual arrangement fee)• 2% One-time upfront fee

Repayment Schedule• 14 consecutive semi-annual instalments / Beginning June 2021 / Final

Dec 2027

Cash Sweep Mechanism • 70% of excess cash flow

Financial Covenants • Accelerated repayment for change of control

Lead Arranger • Dowa Metals & Mining Co. Ltd.

Los Gatos Silver-Zinc-Lead Project:Equity Financing

24

• SSMRC has completed a $36.5 million private placement with $28 million to be an initial equitycontribution to the Los Gatos Project.

• SSMRC has $46 million of equity obligation remaining ($74M - $28M = $46M).

• If SSMRC is unable to provide its remaining $46 million equity contribution, Dowa will continuefunding the Los Gatos Project on SSMRC’s behalf.

• Dowa will treat any funding on SSMRC’s behalf as a project loan with an interest rate ofLIBOR + 1.5%.

• The loan repayment is due on June 30, 2019 when the project is expected to startcommissioning.

• If SSMRC does not repay the loan by the maturity date, Dowa will earn additional equityinterest in the Los Gatos Project.

• SSMRC will have a buy-back option to reacquire the Los Gatos Project equity acquired atthe value credited to Dowa.

• This option can be exercised at any time and expires two years following the Los GatosProject commissioning.

Los Gatos Project Equity Contribution $106 million

SSMRC 70% $74 million

Dowa 30% $32 million

Los Gatos Silver-Zinc-Lead Project:The Timeline to Production

25

➢ Completion of the NI 43-101 compliant Feasibility Study

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

➢ Completion of the Cerro Los Gatos Equity Financing Requirement

➢ Approval of Final Construction Permits for Cerro Los Gatos

➢ Approval of the Cerro Los Gatos Debt Finance Facility

➢ Initiate Cerro Los Gatos Project Construction

Q2 2019

➢ Cerro Los Gatos Project Commissioning Begins

Construction of Cerro Los Gatos Process Plant and other surface Facilities to Annually Produce 5.8M Ag ozs, 64.8M Zn lbs, 39.8M Pb lbs1 at AISC of $5.21/Ag oz

The SSMRC & Dowa Los Gatos Joint Venture will continually Add Value through Resource Expansion & Mine Construction

Ongoing Definition Drilling to increase the Cerro Los Gatos Reserves & Resources

1 Figures shown are metal recovered; Payable metal figures are 5.2 Moz Ag, 50.5 Mlbs Zn & 36.6 Mlbs Pb

➢ MIA submitted to SEMARNAT for approval of surface construction permits

Underground Development started in June 2015 and continues through Cerro Los Gatos Project Commissioning

Q4 2016 Q2 2018 Q3 2018 Q4 2018 Q1 2019

➢ Final Engineering Completed

➢ Long-lead Equipment Ordered

➢ Powerline Construction Started

➢ Earthworks Started

➢ Processing Plant & Other Surface Facilities Construction Started

Q3 2019 Q4 2019

Production Ramp-up Phase

➢ Achieve Design Production of 2500 tpd


(Mt) (g/t) (g/t) (%) (%) (%) (g/t) (Moz) (koz) (Mlbs) (Mlbs) (Mlbs) (Moz)

Indicated 0.46 133 0.04 0.02% 0.70% 2.10% 269 2.0 0.6 0.2 7.1 21.3 4.0

Inferred 2.29 98 0.12 0.05% 1.60% 3.00% 324 7.2 8.8 2.5 80.8 151.5 23.8

Total Resources 2.75 104 0.11 0.04% 1.45% 2.85% 315 9.2 9.4 2.7 87.9 172.8 27.8

Grade Contained MetalOre

Tonnes

Los Gatos Silver-Zinc-Lead Project:Additional District Exploration Targets

26

Other Preliminary Resource Estimates:

• Esther: 1.75MT at 129.7 gAg/t, 1.8% Pb, 3.7% Zn

• Amapola: 1.46MT at 174.1 gAg/t, 0.2%Pb, 0.5%Zn

Other Ore Grade Intercepts:

• Cieneguita: 1.3m at 62.4g Ag/t, 5.4% Pb, 0.9% Zn

• San Luis: 2.0m at 271.0g Ag/t, 0.3% Pb, 0.1% Zn

• Paula Adorada: 4.0m at 180.0 g Ag/t, 0.1% Pb, 0.1% Zn

• San Agustin: 1.3m at 148.0 gAg/t, 1.2% Pb, 2.3% Zn

• Mezcalera: 2.0m At 59.4g Ag/t, 0.1% Pb, 0.1% Zn

• Los Torunos: 1.8m at 34.2 gAg/t, 2.6% Pb, 0.9% Zn

• El Rodeo Hole: 0.8m at 61.5 gAg/t, 3.4% Pb, 4.0% Zn

• Boca de Leon: 2.2m at 90.6 gAg/t, 5.0% Pb, 0.8% Zn

• El Lince: 4.0m at 62.2 gAg/t, 0.0% Pb, 0.1% Zn

1Esther and Amapola resource estimate per TetraTech Aug12 Technical Report (also disclosed in Los Gatos FS technical report); See appendix for Ag Eq calculation details

Esther & Amapola Deposits1


(Mt) (g/t) (g/t) (%) (%) (%) (Moz) (koz) (Mlbs) (Mlbs) (Mlbs) (Moz)

Indicated 0.62 113 0.04 0.02% 0.60% 1.70% 225 2.3 0.8 0.3 8.2 23.2 4.5

Inferred 2.94 87 0.10 0.04% 1.30% 2.50% 274 8.2 9.5 2.6 84.3 162.0 25.9

Total Resources 3.56 92 0.09 0.04% 1.18% 2.36% 265 10.5 10.2 2.9 92.5 185.3 30.4


Tonnes

Esther

Amapola

The Sunshine Mine: An American Silver Legend

Sunshine Silver Mine: We’re in the Sweetest Spot of the District

28

Sunshine

827 g/t AgM&I 75 million oz. Ag

Inferred 221 million oz. Ag

Source: Public filings and Google Earth. Silver grade of total reserves & resources (including inferred) at peer projects. M&I shown is inclusive of reserves. Relative circle size is indicative of MI&I silver grade at the Sunshine Mine and other Silver Valley projects.

1 Historical production grade at the Bunker Hill mine. Not NI 43-101 compliant.

Galena

300 g/t Ag

M&I 42M oz. Ag

Inf. 16M oz. Ag

Lucky Friday

273 g/t Ag

M&I 211M oz. Ag

Inf. 34M oz. Ag

Bunker Hill

226 g/t Ag1

M&I N/A

Inf. N/A

The highest-grade tetrahedrite-dominant mine

in the Silver Valley

Note: Grade shown represents grade of total reserves and resources. Relative circle size is indicative of current weighted average M&I silver grade

248

827

671

855

0

100

200

300

400

500

600

700

800

900

1000

Gra

de

(g/t

)

Average = 206 g/t Ag Average = 340 g/t Ag EqAg Grade (g/t)

AgEq Grade (g/t)

In-Situ Mineral Resource Grades: Global Silver Project Comparisons

29Note: Grades include all Measured, Indicated and Inferred resources; Ag Eq calculations based on Ag = $17.02/oz, Au = $1,205/oz, Pb = $1.02/lb, Zn = $1.21/lb & Cu = $2.57/lb (10Mar17 spot prices)Averages shown exclude SSMRC datapoints; All information is sourced from public disclosure as at 10Mar17

SSO FR SVM

MND

MAG

THO

FVI

SSMRC

FRES-LN PAAS EDR CDE

• Numerous unexplored target areas identified for systematic exploration

• New veins & extensions of known veins discovered in the upper areas of the deposit

• Deposit also open at depth

• Additional high potential zones near previously mined areas

Sunshine Silver Mine: Focus on Shallow Targets

30

Using modern technology to systematically explore a world-class project in a historic and prolific district, to unlock value and create a unique high grade silver mine

Sunshine Silver Mine:Exploration Results

31

Sterling Tunnel Station D Vertical Section

Vertical Section Looking West Summarizing South Yankee Boy Vein Intercepts

Sterling Tunnel

7490

Sterling Tunnel

ST

-2648

1200

1150

1100

1050

ST

-2650

1000

850

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ST

-2651

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60

17

.50

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-2652

500

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500

ST

-2649

14

3.0

027

.700

14

.00

2.5

0

14

.00

63

5.0

0

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2

11

7.0

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550

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-2647

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40

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.20

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ST-2

645

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ST-2

646

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400

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00

550

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9300

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21

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.100

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7.0

5

250

350

250

350

250

250

250

300

200

300

200

200

200

200

250

200

250

ST

-2660

700

150

150

650

150

200

150

600

0.4

77

200

150

150

550

500

150

150

100

100

450

0.5

18

100

100

100

400

100

350

ST

-2656

52.4

0

100

4.7

650

0

100

450

300

4.8

50.4

04

0.6

24

6.5

2

400

0.4

67

0.4

26

350

250

50

50

ST-2

654

5.8

0

63.9

0

500

50

300

450

50

400

50

350

400

50

200

300

450

350

450

500

3.6

91.

10

12.7

0

ST

-265

5

450

250

400

400

500

500

2.2

341

.10

5.8

3250

350

350

45

.20

50

3.1

3

300

450

550

400

50

300

550

300

500

24

7.9

0

19

5.7

0

350

9.7

0

5.0

4

1.7

812

0.0

0

1.6

1

18.20

600

8.60

2.59

ST

-2657

550

2.81

200

650

500

200

600

250

300

450

700

250

150

250

400

0.971

2.87

600

1.1

50

51

.10

12.20

12

.50

750

1.0

7

16.4

0

250

350

14

.20

0.9

63

11

.30

800

650

200

200

150

300

200

150

850

650

200

250

900

150

10.1

0

150

3.8

2

700

1.6

70

356.

404.0

5

100

150

150

200

950

700

100

100 ST

-2659

100

100

150

1000

750

100

100

50

100

1050

50

50

50

50

50

50

50

800

1100

0 00 0

0

0

0 0

0

0

0

0

0

0

0

00

0

0

0

0

1150

850

1200

1250

900

50

50

50

1300

ST

-2658

5050

1350

100

ST-2

653

100

100

100

100

150

150

st_tunnel_busted

150

200

150

150

0.459

3.27

200

5.10

0.404

Sterling Tunnel

0.4

69

1.2

1

83.2

0

1.2

500.

47820

01.

41

250

200

250

200

250

6.5

7

300

2.3

6

1.3

40

250

300

250

300

350

350

300

400

350

300

400

350

450

400

350

450

500

400

450

0.4

85400

500

0.4

050.

475

550

1.3

9

13.9

0

450

500

2.4

4

0.4

75

8.5

084

.60

0.5

17

0.4

85

12.9

0450

550

600

550

500

3.7

314

.90

1.0

62.

77

600

500

650

43

.90

3.1

716

.30

7.2

1

600

550

ST-2

662

ST

-2663

ST-2

661

550

600

600

ST

-2664

ST

-2665

6725

6890

Sterling Tunnel

0 X

20

0 X

40

0 X

60

0 X

80

0 X

10

00

X

12

00

X

14

00

X

1400 Y

1600 Y

1800 Y

2000 Y

2200 Y

2400 Y

2600 Y

2800 Y

3000 Y

3200 Y

3400 Y

Sunshine Vein

DRILL STATION D

Sterling Tunnel Elevation

South Yankee Boy Split Vein

Sunshine 500 Level

Sunshine 900 Level

DRILL STATION C

6725 Bulk

Sample Stope

DDHIDInterceptLength

(m)

Ag

(grams/tonne)Cu(%) Pb(%)

ST-2651 0.09 555 0.24 0.05

ST-2653 0.67 1234 0.98 0.20

ST-2655 0.73 562 2.20 0.05

ST-2658 1.22 709 0.78 0.41

ST-2659 0.58 708 0.40 0.05

ST-2662 0.67 1575 1.02 0.90

Average 0.66 891 0.94 0.28

SouthYankeeBoySplitVeinSouth Yankee Boy Split Vein

A focus on shallow targets:

South Yankee Boy Split

Vein Discovery


32

Sterling Tunnel Station D Vertical Section

Vertical Section Looking West Summarizing Sunshine Vein Intercepts

Sterling Tunnel

7490

Sterling Tunnel

ST

-2648

1200

1150

1100

1050

ST

-2650

1000

850

950

900

800

850

750

800

700

750

ST

-2651

650

700

600

1.3

60

17

.50

650

600

550

600

ST

-2652

500

550

500

ST

-2649

14

3.0

027

.700

14

.00

2.5

0

14

.00

63

5.0

0

2.8

2

11

7.0

0

550

500

550

450

ST

-2647

450

500

500

450

500

400

2.5

40

16

.20

450

400

450

ST-2

645

450

400

600

ST-2

646

9.5

6

400

19.6

0

0.4

00

550

400

350

22.3

0

350

550

400

350

500

500

350

350

350

300

450

300

450

300

1.0

9300

400

1.4

2

300

21

2.3

0

15

.100

400

300

250

7.0

5

250

350

250

350

250

250

250

300

200

300

200

200

200

200

250

200

250

ST

-2660

700

150

150

650

150

200

150

600

0.4

77

200

150

150

550

500

150

150

100

100

450

0.5

18

100

100

100

400

100

350

ST

-2656

52.4

0

100

4.7

650

0

100

450

300

4.8

50.4

04

0.6

24

6.5

2

400

0.4

67

0.4

26

350

250

50

50

ST-2

654

5.8

0

63.9

0

500

50

300

450

50

400

50

350

400

50

200

300

450

350

450

500

3.6

91.

10

12.7

0

ST

-265

5

450

250

400

400

500

500

2.2

341

.10

5.8

3250

350

350

45

.20

50

3.1

3

300

450

550

400

50

300

550

300

500

24

7.9

0

19

5.7

0

350

9.7

0

5.0

4

1.7

812

0.0

0

1.6

1

18.20

600

8.60

2.59

ST

-2657

550

2.81

200

650

500

200

600

250

300

450

700

250

150

250

400

0.971

2.87

600

1.1

50

51

.10

12.20

12

.50

750

1.0

7

16.4

0

250

350

14

.20

0.9

63

11

.30

800

650

200

200

150

300

200

150

850

650

200

250

900

150

10.1

0

150

3.8

2

700

1.6

70

356.

404.0

5

100

150

150

200

950

700

100

100 ST

-2659

100

100

150

1000

750

100

100

50

100

1050

50

50

50

50

50

50

50

800

1100

0 00 0

0

0

0 0

0

0

0

0

0

0

0

00

0

0

0

0

1150

850

1200

1250

900

50

50

50

1300

ST

-2658

5050

1350

100

ST-2

653

100

100

100

100

150

150

st_tunnel_busted

150

200

150

150

0.459

3.27

200

5.10

0.404

Sterling Tunnel

0.4

69

1.2

1

83.2

0

1.2

500.

47820

01.

41

250

200

250

200

250

6.5

7

300

2.3

6

1.3

40

250

300

250

300

350

350

300

400

350

300

400

350

450

400

350

450

500

400

450

0.4

85400

500

0.4

050.

475

550

1.3

9

13.9

0

450

500

2.4

4

0.4

75

8.5

084

.60

0.5

17

0.4

85

12.9

0450

550

600

550

500

3.7

314

.90

1.0

62.

77

600

500

650

43

.90

3.1

716

.30

7.2

1

600

550

ST-2

662

ST

-2663

ST-2

661

550

600

600

ST

-2664

ST

-2665

6725

6890

Sterling Tunnel

0 X

20

0 X

40

0 X

60

0 X

80

0 X

10

00

X

12

00

X

14

00

X

1400 Y

1600 Y

1800 Y

2000 Y

2200 Y

2400 Y

2600 Y

2800 Y

3000 Y

3200 Y

3400 Y

Sunshine Vein

DRILL STATION D

Sterling Tunnel Elevation


Sunshine 500 Level

Sunshine 900 Level

DRILL STATION C

6725 Bulk

Sample Stope


(m)

Ag


ST-2625 1.16 1246 0.41 0.13

ST-2627 0.52 520 0.24 0.05

ST-2628 0.55 2142 1.54 0.05

ST-2629 0.79 5799 1.83 0.07

ST-2630 0.09 3703 1.81 0.05

ST-2631 0.15 2191 1.00 0.16

ST-2632 0.64 415 0.15 0.05

ST-2636 0.40 321 0.06 3.34

ST-2637 0.61 2126 1.49 0.12

ST-2638 0.15 1114 0.63 0.05

ST-2640 0.18 1025 0.33 0.00

ST-2641 1.43 3615 0.82 0.05

ST-2644 0.37 1087 0.51 0.05

ST-2645 0.46 765 0.36 0.05

ST-2646 0.18 672 0.25 0.00

ST-2648 1.22 480 0.15 0.16

ST-2653 0.27 624 0.44 0.05

ST-2654 0.49 946 0.28 0.05

ST-2655 0.52 435 0.13 0.00

ST-2656 0.09 1797 0.69 0.00

ST-2658 0.85 829 0.21 0.08

ST-2659 0.88 3044 0.70 0.09

ST-2661 0.37 477 0.16 0.17

ST-2662 0.40 2901 1.11 0.20

ST-2664 0.46 511 0.21 0.05

ST-2665 1.10 634 0.24 0.05

Average 0.55 1516 0.61 0.20

SunshineVeinSunshine Vein


Sunshine Vein Extension

Discovery

33

Sterling Tunnel Station C Vertical Section

Vertical Section Looking West Summarizing 10 Vein Intercepts

7490_asbuildst_tunnel_level

st_tunnel_level

6725_asbuild

1300

ST-264

012

50

1200

1150

1100

1050

1000

950

ST-2

641

1050

900

1000

ST-2

642

850

950

850

900

800

800

850

750

29.9

0

23.1

0

0.7

30

800

750

700

ST-2

643

1200

750

119.

80

1150

23.3

065

0

700

1100

700

1050

600

650

650

1000

950

550

600

600

900

ST

-263

6

1000

850

550

500

950

ST-2644

1150

900

550

800

1100

850

6980_asbuild

20.30

800

1050

500

35.000

27.00

5.21

7.600

24.50

50.000

1.0

2

750

450

1000

750

ST-2

634

1400

1350

1300

50012

50

950

1200

700

3.3

40

9.3

7

1150

700

1100

900

450

1050

650

1000

183.90

1.25

1.56

2.22

24.50

9.92

850

8.19

400

950

650

ST-2

633

700

ST-263

9

450

600

900

800

750

850

650

600

400

700

550

750

800

600

750

350

650

400

3.3

816

.80

1.5

4

550

700

500

700

550

600

350

650

650

500

450

500

550

600

350

1250

1300

1200

1350

1150

300

3.09

1100

21.200

17.10

3.100

1.71

14.30

10.500

1400

600

ST-2638

1050

1000

450

950

550

500

450

400

900

550

300

st_tunnel_level

25.60

32.509.71

850

500

450

400

300

800

400

500

250

750

350

450

400

21.70

700

450

250

350

350

650

400

250

300

600

350

400

200

300

300

350

550

3.9

70

4.9

520

0

350

500

500

450

300

550

250

400

0.4

70

200

600

250

300

0.7

00

250

450

650

350

300

9.8

3

28.2

00

700

250

400

1.4

70

17.6

0

150

250

21.5

0

300

750

200

150

200

350

200

250

150

800

200

250

300

5.8

6

1.9

40

200

0.4

50

850

2.4

7

0.4

70

200

150

250

150

150

800

850

750

100

39.2

0

2.8

2090

0

700

6.7

7

196.

001.

78

3.5

3

19.4

0

1387

.00

2.6

09.

70

900

200

900

850

950

950

650

62.00

35.30

2.88

32.00

800

1000

1.43

14.400

9.83

750

7.16

6.850

2.19 10

50

150

600

700

1000

1100

650

ST-2

629

100

1150

550

600

1200

150

100

37.3

0

4.1

40

550

0.8

90

1.9

813

.80

14.2

00

500

200

1250

13.9

0

13.6

00

500

ST-263

7

950

150

650

450

600

450

700

1.5

515

.70

49.4

01.

89

108.

00

550

750

400

800

500

150

400

100

850

450

350

100

150

900

350

400

8.0

70

7.5

0

1000

100

3.7

5

1.7

10

300

100

950

350

100

300

250

100

300

1000

ST-

2630

250

100

200

50

1050

250

100

50

50

9.01

5.130

150

200

200

400

350

50

450

300

50

350

50

300

400

500

250

250

150100

50

450

150

50

550

500

600

1100

550

200

450

650

50

5.710

45.20

200

400

700

750

350

50

500

50

800

300

150

600

100

150

23.90

850

250

256.0

07.1

7

300

350

100

250

400

200

450

900

550

200

50

500

100

150

950

650

0.440

100

150

550

100

100

1000

50

600

50

600

15.6

0

1150

9.6

2

118.

30

50

10.3

0

2.5

30

5050

650

1050

50

700

0

0

000

00000

0

00

00

0

0

000

150

700

100

11.6

90

61.6

0

0.4

20

25.0

0

29.5

00

15.6

0

6.3

90

23.7

00

71.2

0

50

200

1100

50

250

3.58

1.90

40.50

650

1.35

750

3.3

2

300

1150

750

2.3

9

0.6

70

100

4.950

2.24

800

350

1200

400

150

4.35

1.570

1200

850

700

800

450

900

200

ST-2628

500

950

11.1

00

6.0

8

0.5

00

1.4

3

1.0

90750

2.6

7

1.8

00

2.8

8

1.4

60

44.0

0

550

850

250

1250

ST-2

635

1000

600

1050

300

800

650

40.1

0

61.9

00

50.1

0

59.8

00

900

1100

700

350

1150

750

63.90

850

950

0.6

00

32

.60

400

800

1200

0.8

40

1.0

8

850

450

ST-2

627

900

1000

900

500

950

950

1050

30.80

59.200

41.90

78.200

79.100

74.60

19.700

8.32

8.35

0.620

3.87

550

1000

ST-263

1

1000

600

1100

650

ST

-262

4

1150

700

750 1200

1.62

12.10

9.43

800

850

1250

900

1300

950

ST-2

625

1000

45.600

46.90

4.36

3.920

1.150

313.00

7.63

1050

ST-2632

40

0 X

60

0 X

80

0 X

10

00

X

12

00

X

14

00

X

16

00

X

18

00

X

1200 Y

1400 Y

1600 Y

1800 Y

2000 Y

2200 Y

2400 Y

2600 Y

2800 Y

3000 Y

Sunshine Vein

10 Vein

DRILL STATION C Sterling Tunnel Elevation


Sunshine 900 Level

Sunshine 500 Level

6725 Bulk

Sample Stope


(m)

Ag


ST-2624 0.09 1118 1.47 0.60

ST-2625 0.21 1375 0.11 61.90

ST-2625 0.06 1718 0.63 59.80

ST-2627 0.61 804 1.03 0.84

ST-2628 1.30 1063 0.47 12.80

ST-2631 1.13 1234 0.10 55.87

ST-2632 1.55 1824 0.71 15.89

ST-2635 0.24 477 0.13 13.60

ST-2635 0.46 473 0.07 14.20

ST-2637 1.22 143 0.02 4.71

ST-2638 0.67 336 0.09 9.90

ST-2644 0.37 483 0.08 20.27

Average 0.66 921 0.41 22.53

10Vein

10 Vein


10 Vein Discovery


New Discovery South Yankee Boy Split Vein: Trial Mining

3434

• 1.1 Meter Wide Vein• Grading 2,152 g/t Ag, 1.02% Cu, 2.43% Pb

• 2.2 Meter Wtd. Avg. Mining Width• Grading 1,049 g/t Ag, 0.50% Cu, 1.18% Pb

• 0.3 Meter Wide Vein • Grading 3,869 g/t Ag, 2.05% Cu, 0% Pb

• 1.68 Meter Wtd. Avg. Mining Width• Grading 1,322 g/t Ag, 0.65% Cu, 0.12% Pb

Sunshine Silver Mine: 2014 NI 43-101 Compliant Resource Estimate & PEA

35

Full production mining rate 1,200 tpd

Silver grade 24.8 oz/ton (≈850 g/t)

Silver recovery 92% in Upper; 96% in Lower

Silver production (peak) 10 to 12 million ounces (9.4M average LOM)

Cash costs $9.16/oz

All-In sustaining costs $11.86/oz

NPV(5%)1 $570M

Payback period 6 years

Mine life 24 years

2014 Preliminary Economic Assessment by Tetra Tech & MTB Project Management Professionals

1 PEA technical report metal price assumptions are Ag = $21.26/oz, Cu = $3.00/lb, Pb = $0.96/lb & Sb = $5.00/lb

Ag Cu Pb Zn Ag Eq Ag Cu Pb Zn Ag Eq

(Mt) (g/t) (%) (%) (%) (g/t) (Moz) (Mlbs) (Mlbs) (Mlbs) (Moz)

Measured 1.12 843 843 30.3 0.0 0.0 0.0 30.3

Indicated 1.87 752 752 45.2 0.0 0.0 0.0 45.2

Total Meas. & Ind. 2.98 786 0.00% 0.00% 0.00% 786 75.5 0.0 0.0 0.0 75.5

Inferred 8.17 842 0.22% 0.35% 0.02% 880 221.3 39.6 63.1 3.6 231.4

Total Resources 11.16 827 0.16% 0.26% 0.01% 855 296.8 39.6 63.1 3.6 306.8


Tonnes

Sunshine Silver Mine: Largest Mineral Rights Holder in Idaho’s Silver Valley

36

Sunshine seized the opportunity during the sector downturn to become the largest mineral rights owner in Idaho’s Silver Valley, one of the world’s most prolific silver districts

Sunshine Pine Creek District

First Target: 75 MM OZ Silver

750+ MM Pounds Lead, Zinc & Copper

Sunshine East District


150+ MM Pounds Copper, Lead & Zinc

Sunshine-South



Sunshine Mine

First Target: 400 MM OZ Silver and open at depth

1.5+ B Pounds Copper, Lead & Zinc

Sunshine-Coeur d A’lene



Sunshine Silver Mine: Purchased Sunshine Refinery in 2013

37

• A unique opportunity to be the only vertically integrated silver mining operation in the United States, having acquired the Sunshine Refinery in October 2013, and changed its name to Sunshine Mining & Refining Corporation

The Refinery makes Sunshine a Unique Silver Vehicle:

• Provides vertical integration from mining to refining of 99.98% pure silver bullion & possibly antimony metal

• Offers significant capital and operating expense savings vs. construction of new refinery or external processing of all silver-bearing concentrates

• Reduces risk of regulatory approval or delays as refinery is approved for operation under Sunshine’s existing federal water discharge permit

• Certified for direct delivery to COMEX

Sunshine Mine & Los Gatos:Size & Grade vs. Development Peers

38

Resource Size (100%) & Grade of Construction-Development Peers(1)

(1) Peers per company public disclosure; All resource sizes are shown on a 100% basis and include Measured, Indicated & Inferred resources

The Sunshine & Los Gatos deposits are amongst the highest grade Ag deposits vs. their Silver Development Peers. MAG (shown in green) & Sunshine (shown in blue) are the only companies in the “Construction” phase

297

227

84

15

99

140

32

53

33

63

216

280

359

53

827

465

363

281248

181166

132106

8565

42 40 270

100

200

300

400

500

600

700

800

900

0

50

100

150

200

250

300

350

400

Silv

er R

eso

urc

e G

rad

e (g

/tA

g)

Re

sou

rce

Siz

e (M

oz)

sunshine silver mining &...

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