Tepic Project

Overview

• Hosts a low-sulfidation epithermal gold and silver mineralization lying within the Sierra Madre Geologic Province
• Existing historic resource estimation – Detailed in 2020 Technical Report
• Former Flagship asset of Cream Minerals
• Good preliminary metallurgical test results for both gold and silver recoveries
• Excellent potential to increase the size of the defined Ag-Au mineralized system

Location and Infrastructure

• Lies 22 km, mostly on paved highway from Tepic City, the capital of the State of Nayarit, Mexico.
• Located 15 km from regional airport and 120 km from the Puerto Vallarta Airport
• Workforce familiar with heavy equipment and mining present in surrounding area
• National electrical grid in immediate area
• Industrial supplies, machine and fabrication plants readily available in Tepic
• Most importantly, the project is in a “mining friendly jurisdiction”

Property covers more than 2,600 ha.

• The company holds five mining concessions covering a total of 2,612.5 hectares.
• 100% Owned

Geology and Mineralization

Property hosts an epithermal gold-silver mineralization

• Several identified zones of mineralization extend over a kilometer with widths up to 200m.
• These zones define segments of what is thought to be a single, continuous structure that crosses the property from northwest to southeast.
• 31,537 meters of core drilling in 149 holes, housed in Sierra Madre’s warehouse.
• Phase 2 drill program has been designed to test extensions of the previously defined breccia/vein structures, test newly defined targets and infill the existing drill pattern in order to facilitate the estimation of an updated NI 43-101 compliant resource.

Poor core recovery, averaging 76%, within the mineralized intervals which may have resulted In an underestimation of both gold and silver grades. This is indicated by higher grade sampling in underground workings adjacent to cored intervals. A reverse circulation drilling campaign which would produce 100% recovery, is planned to test this potential.

Exploration Potential:

Recent exploration revealed that the defined Ag-Au mineralization has a great potential for expansion.

An overly complex structural interpretation with inferred faults guided previous drilling and assumed the Dos Hornos breccia veins were cut off.

New structural interpretation based on final 2011 drill program results shows both Dos Hornos structures are open along strike. This adds significant upside to the exploration potential.

Defined Ag-Au mineralization can be expanded at depth and along strike.

Along Strike Expansion Potential.

Tepic Drilling

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Tepic Diamond Drill Results

Notes:

1. Length-weighted averages from uncut assays
2. Intervals reported are hole lengths with true width estimated to be 90% or greater
3. *Gold silver ratio used to calculateAuEqis 75 g/t Ag to 1 g/t Au
4. 0.4 g/tAuEqexternal cut off

Historical Mineral Resources

Historical Mineral Resource Estimate for the project was released in 2013.

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• 2013 Estimate for Cream Mineral Limited, by McBride and Workman of Watts Griffis and McOuat, Consulting Geologist and Engineers (WGM), with effective date March 20, 2013.
• CIM definitions were followed for the Historic Mineral Resources. Historical Resources reported Ag-Au resources for the Dos Hornos, Vita Tomas, and Once Bocas North deposits. WGM estimates were prepared from a polygonal mode, with a minimum horizontal thickness of1.5 m, specific gravity of 2.65 tonnes per cubic metre, cut-off grade of US $75/tonne contained gold + silver, silver values cut to 1,000 g/t, and resource classification projected in an ellipsoidal zone with maximum horizontal and vertical dimensions of, respectively, 30 m and 20 m for Indicated Resources, and 45 m and 30 m for Inferred Resources.
• A Qualified Person has not done sufficient work to classify this Historical Mineral Resource as current Mineral Resources and Sierra Madre is not, therefore, treating the Historical Mineral Resource as a current Mineral Resource. Sierra Madre believes the Historical Resource is reliable, and that it remains relevant to the Project. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
• For full details see Technical report titled " Technical Report on the Tepic Property, Nayarit, México with an effective date of October 21, 2020; prepared by William A. Turner, P. Geol. and Derek Loveday, P. Geo. of Stantec Consulting International LLC.. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is available under Sierra Madre Gold and Silver’s SEDAR profile at www.sedar.com.”

Metallurgy

Previous Metallurgical Results

For full details see Technical report titled " Technical Report on the Tepic Property, Nayarit, México with an effective date of October 21, 2020; prepared by William A. Turner, P. Geol. and Derek Loveday, P. Geo. of Stantec Consulting International LLC.. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is available under Sierra Madre Gold and Silver’s SEDAR+ profile at www.sedarplus.ca."

Maps

Structures Map

Taunas Map

North Zone Map

Image Gallery

Phase 2 Drilling Video

Panoramic View