Discovery Reports Solid Earnings and Cash Flow in Q1 2026

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		March 31,			March 31,			Three months ended December 31,
$ Thousands		2026			2025			2025
Sustaining capital	$	20,689		$	36		$	33,805
Growth capital⁽¹⁾		49,215			3,092			66,054
Leases		—			735			5,933
Total capital expenditures		69,904			3,863			105,792
Working capital changes		(2,847	)		(96	)		(10,468	)
Additions to mining interests, plant and equipment⁽²⁾	$	67,057		$	3,767		$	95,324

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(1) Growth capital includes capitalized exploration expenditures of $7.1 million that meet the Company’s definition of growth capital.
(2) Represents cash expenditures for additions to mining interests, plant and equipment during the period, as reported in the Condensed Consolidated Interim Statements of Cash Flows.

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Operating
Cash
Costs
and
Operating
Cash
Costs
per
Ounce
Sold

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Operating cash costs and operating cash costs per ounce sold are non-GAAP measures. In the gold mining industry, these metrics are common performance measures but do not have any standardized meaning under GAAP. Operating cash costs include mine site operating costs such as mining, processing, administration and royalty expenses but exclude depreciation and depletion and reclamation costs. Operating cash cost per ounce sold is based on ounces sold and is calculated by dividing operating cash costs by volume of gold ounces sold.

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The Company discloses operating cash costs and operating cash cost per ounce sold as it believes the measures provide valuable assistance to investors and analysts in evaluating the Company’s operational performance and ability to generate cash flow. The most directly comparable measure prepared in accordance with GAAP is production costs. Operating cash costs and operating cash costs per ounce sold should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.

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AISC
and
AISC
per
Ounce
Sold

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AISC and AISC per ounce sold are non-GAAP measures. These measures are intended to assist readers in evaluating the total costs of producing and selling gold from current operations. While there is no standardized meaning across the industry for this measure, the Company’s definition conforms to the definition of AISC as set out by the World Gold Council in its guidance note dated June 27, 2013, except for share-based compensation as disclosed below.

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The Company defines AISC as the sum of operating costs (as defined and calculated above), sustaining capital, exploration expense, corporate expenses, lease payments relating to sustaining assets, and reclamation cost accretion and depreciation related to current operations. Corporate expenses include general and administrative expenses, net of transaction related costs, severance expenses for management changes and interest income. AISC excludes growth capital expenditures, growth exploration expenditures, reclamation cost accretion and depreciation not related to current operations, lease payments related to non-sustaining assets, interest expense, debt repayment, taxes, and share-based compensation.

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Operating
cash
costs
and
AISC
Reconciliation

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The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures available for Q1 2026 and Q4 2025:

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Three months ended March 31, 2026
$ Thousands unless otherwise stated	Porcupine		Corporate	Total Consolidated
Production costs	76,184		—	76,184
Royalty expense	7,058		—	7,058
TSA⁽¹⁾⁽²⁾	(2,577	)	—	(2,577	)
Operating cash costs	80,665		—	80,665
General and administrative⁽²⁾	2,059		7,650	9,709
Share-based compensation				—
Accretion of site closure provisions	3,070		—	3,070
Amortization of site closure provision	983		—	983
Sustaining capital	18,986		1,703	20,689
Sustaining leases	978		98	1,076
AISC⁽³⁾	106,741		9,451	116,192
Ounces of gold sold	56,927		—	56,927
Operating cash costs per ounce sold ($)	1,417		—	1,417
Sustaining capital expenditures per ounce sold ($)	334		—	363
AISC per ounce sold ($)	1,875		—	2,041
(1) Transition services agreement (“TSA”). (2) Excludes certain items not reflective of normal operations. (3) Excludes the $156 per ounce impact of share-based compensation.
Three months ended December 31, 2025
$ Thousands unless otherwise stated	Porcupine		Corporate	Total Consolidated
Production costs	73,814		—	73,814
Royalty expense	7,859		—	7,859
TSA⁽¹⁾	(3,047	)	—	(3,047	)
PPA inventory⁽²⁾	(2,231	)	—	(2,231	)
Operating cash costs	76,395		—	76,395
General and administrative⁽³⁾	1,809		12,118	13,927
Share-based compensation	—		461	461
Accretion of site closure provisions	3,688		—	3,688
Amortization of site closure provision	1,043		—	1,043
Sustaining capital	32,908		897	33,805
Sustaining leases	1,740		84	1,824
AISC	117,583		13,560	131,143
Ounces of gold sold	64,479		—	64,479
Operating cash costs per ounce sold ($)	1,185		—	1,185
Sustaining capital expenditures per ounce sold ($)	510		—	524
AISC per ounce sold ($)	1,824		—	2,034

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(1)  Costs not reflective of normal operations.
(2)  Purchase price allocation represents the depletion of inventories acquired with the business combinations.
(3)  Excludes certain items not reflective of normal operations.

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Average
Realized
Price
per
Ounce
Sold

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In the gold mining industry, average realized price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with GAAP is revenue from gold sales. Average realized price per ounces sold should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. The measure is intended to assist readers in evaluating the total revenues realized in a period from current operations.

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$ Thousands unless otherwise stated	March 31, 2026		Three months ended December 31, 2025
Revenue	$	285,035	$	274,242
Less: Deferred Revenue		5,609		6,181
Sales Refined Gold	$	279,426	$	268,061
Ounces sold		56,927		64,479
Average realized price per ounce sold ($)	$	4,908	$	4,157

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Adjusted
Net
Earnings
and
Adjusted
Net
Earnings
per
Share

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Adjusted net earnings and adjusted net earnings per share are used by management and investors to measure the underlying operating performance of the Company. Adjusted net earnings is defined as net earnings adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the underlying operations of the Company, including foreign exchange gains and losses and other non-recurring items. Adjusted net earnings per share is calculated using the weighted average number of shares outstanding for adjusted net earnings per share.

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								Three months ended
$ Thousands unless otherwise stated		March 31, 2026		March 31, 2025				December 31, 2025
Net earnings	$	81,679		$	(6,452	)	$	65,289
Business development expenses		—			3,534			345
Foreign exchange loss (gain)		(1,732	)		(128	)		4,037
TSA		2,577			—			3,047
Severance		1,766			—			1,853
Shares issued on TTN Resource Development Agreement		—			—			10,868
PPA adjustment – inventory		—			—			2,231
Reclamation expense – discount rate change⁽¹⁾		—			—			45,036
Income tax related to above adjustments		(1,568	)		—			(19,211	)
Adjusted net earnings	$	82,722		$	(3,046	)	$	113,495
Weighted average shares outstanding – basic (‘000s)		810,063			401,122			805,988
Adjusted net earnings per share ($)	$	0.10		$	(0.01	)	$	0.14

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(1) Non-recurring accounting remeasurement from IFRS 3 Business Combinations to IAS 37 Provisions, Contingent Liabilities, and Contingent Assets related to non-operating mine sites acquired through the Porcupine acquisition. Refer to the REVIEW OF FINANCIAL POSITION section of the Q1 2026 MD&A.

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Earnings
before
Interest,
Taxes,
Depreciation,
and
Amortization
(“EBITDA”)

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EBITDA represents net earnings before interest, taxes, depreciation and amortization. EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

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The following is a reconciliation of EBITDA to the consolidated financial statements:

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							Three months ended
$ Thousands	March 31, 2026		March 31, 2025				December 31, 2025
Net earnings	$	81,679	$	(6,452	)	$	65,289
Add back:
Finance costs		14,978		126			16,304
Depreciation and amortization		31,576		—			49,381
Income tax expenses (recovery)		49,692		—			(4,940	)
EBITDA	$	177,925	$	(6,326	)	$	126,034

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Working
Capital

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Working capital is a non-GAAP measure. In the gold mining industry, working capital is a common measure of liquidity, but does not have any standardized meaning. The most directly comparable measure prepared in accordance with GAAP is current assets and current liabilities. Working capital is calculated by deducting current liabilities from current assets. Working capital should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. The measure is intended to assist readers in evaluating the Company’s liquidity. Working capital is reconciled to the amounts in the Consolidated Statements of Financial Position as follows:

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$ Thousands	March 31, 2026		December 31, 2025
Current assets	$	504,424	$	526,807
Current liabilities		216,238		284,631
Working capital	$	288,186	$	242,176

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FORWARD-LOOKING STATEMENTS

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Except for statements of historical fact, information contained, or incorporated by reference, herein constitutes “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. Such information or statements may relate to future events, facts or circumstances or the Company’s future financial or operating performance or other future events or circumstances. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, and similar expressions, or describes a “goal”, or variation of such words and phrases or states that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Statements relating to mineral resources are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the mineral resources described exist in the quantities predicted or estimated or that it will be commercially viable to produce any portion of such resources. Forward-looking statements in this press release include, but may not be limited to, statements and expectations regarding: outlooks for the Porcupine Complex and the Cordero Project pertaining to production rates, mining and processing rates, total cash costs, all-in sustaining costs, capital spending, cash flow, operational performance, mine life, value of operations and decreases to costs resulting from the intended mill expansion; intended infrastructure investments in, method of funding for, and timing of completion of the development and construction of the Cordero Project, as well as other statements and information as to strategy, plans or future financial and operating performance, such as project timelines, production plans, expected sustainable impact improvements, expected exploration programs, costs and budgets, forecasted cash shortfalls and the ability to fund them and other statements that express management’s expectations or estimates of future plans and performance, as well as the anticipated use of proceeds therefrom and the impact thereof on Discovery’s financial condition; and the Porcupine Complex, including the assumptions and qualifications contained in the Porcupine Technical Report (as defined herein). Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made, including among other things, the future prices of gold, silver, lead, zinc, and other metals, the price of other commodities such as coal, fuel and electricity, currency exchange rates and interest rates; favourable operating conditions, political stability, timely receipt of governmental approvals, licenses, and permits (and renewals thereof); access to necessary financing; stability of labour markets and in market conditions in general; availability of equipment; the estimation of mineral resource and mineral reserve estimates, and of any metallurgical testing completed to date; estimates of costs and expenditures to complete our programs and goals; the speculative nature of mineral exploration and development in general; there being no significant disruptions affecting the development and operation of the project, including possible pandemic; exchange rate assumptions being approximately consistent with the assumptions in the report; the availability of certain consumables and services and the prices for power and other key supplies being approximately consistent with assumptions in the report; labour and materials costs being approximately consistent with assumptions in the report and assumptions made in mineral resource estimates, including, but not limited to, geological interpretation, grades, metal price assumptions, metallurgical and mining recovery rates, geotechnical and hydrogeological assumptions, capital and operating cost estimates, and general marketing, political, business and economic conditions. Many of these assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies, and other factors that are not within the control of Discovery Silver Corp. and could thus cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking statements and forward-looking information.

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Forward-looking information and forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by such statements. In addition to factors already discussed in this document, such risks, uncertainties and other factors include, among others: metal prices, continued access to capital and financing, general economic and market access restrictions or tariffs, changes in U.S. laws and policies regarding regulating international trade, including but not limited to changes to or implementation of tariffs, trade restrictions, or responsive measures of foreign and domestic governments, changes to cost and availability of goods and raw materials, along with supply, logistics and transportation constraints, changes in general economic conditions including market volatility due to uncertain trade policies and tariffs; potential disputes with Indigenous groups in relation to the Porcupine Complex; risks related to unexpected liabilities relating to the Porcupine Acquisition (as defined herein); risks relating to the acquisition of the Kidd Operations; the potential cost synergies associated with closing the Kidd transaction; the future expansion potential associated with the closing of the Kidd transaction and the ability to grow processing capacity as a result thereof; risks related to the nature of acquisitions; the ability to meet of guidance; reliance on information about the Porcupine Complex provided by third parties; regulatory risks associated with the Porcupine Acquisition; the risk that the Company will not realize the anticipated benefits of the Porcupine Acquisition; risks related to integrating the Porcupine Complex; reliance on a third party for transitional services for a period of time after the Porcupine Acquisition Closing; litigation and public attitude towards the Porcupine Acquisition; costs related to the Porcupine Acquisition; increased indebtedness arising from financing the Porcupine Acquisition; risks associated with exploration, development, and operating risks, and risks associated with the early-stage status of the Company’s mineral properties; the nature of exploration could have a negative effect on the Company’s operations and valuation; risk related to the cyclical nature of the mining business; permitting and license risks; risks related to title to land and the potential acquisition of neighboring land packages and the timing thereof; risks related to requiring a significant supply of water for the Company’s operations and being able to source it; the availability of adequate infrastructure for the Company’s operations; risks related to community relations; environmental risks and hazards and the limitations that environmental regulation poses on the Company; market price volatility of the Company’s common shares; uncertainties with respect to economic conditions; the Company’s mineral exploration activities being subject to extensive laws and regulations and the risk of failing to comply with those laws or obtain required permits; the accuracy of historical and forward-looking operational and financial information estimates provided by Newmont and Glencore Canada Corporation; the Company’s ability to integrate the Porcupine Operations; the Kidd Operations; statements regarding the Porcupine Operations and the Kidd Operations, including the results of technical studies and the anticipated capital and operating costs, sustaining costs , internal rate of return, concession or claim renewal, the projected mine life and other attributes of the Porcupine Operations, including net present value, the timing of any environmental assessment processes, reclamation obligations; risks and uncertainties related to operating in a foreign country, and specifically, risks arising from operating in Mexico; risks posed by health epidemics and other outbreaks; climate change risks, including risks associated with increased frequency of natural disasters such as fire, flood and seismicity; the risk that commodity prices decline; cybersecurity risks; risks of adverse publicity; potential dilution to the common shares; risks associated with contractual agreements and subsidiaries; the potential of future lack of funding; credit and liquidity risks; the Company’s history of net losses and negative operating cash flow; the Company’s reliance on a limited number of properties; uninsurable risks; costs of land reclamation; pandemic and global health risks on the Company’s business, operations, and market for securities; the competitive nature of mineral exploration and in the mining industry generally; the Company’s reliance on specialized skills and knowledge; risks associated with acquisitions and integrating new business; future sales of common shares by existing shareholders; risks associated with having multiple shareholders holding over 10% of the common shares; influence of third-party stakeholders; litigation risk; conflicts of interest; reliance on key executives; reliance on internal controls; risks stemming from international conflicts; risks related to changes to tariff and import/ export regulations; global financial conditions; currency rate risks; potential enforcement under the Extractive Sector Transparency Measures Act (Canada); and the potential to pay future dividends.

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Although the Company has attempted to identify important factors that could cause actual performance, achievements, actions, events, results, or conditions to differ materially from those described in forward-looking statements or forward-looking information, there may be other factors that cause performance, achievements, actions, events, results, or conditions to differ from those anticipated, estimated, or intended. Further details relating to many of these factors is discussed in the section entitled “Risk Factors” in the Company’s AIF available on SEDAR+ at www.sedarplus.ca. Forward-looking statements and forward-looking information contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events, or results or otherwise, except as required by applicable law. There can be no assurance that forward-looking statements or forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. All forward-looking statements and forward-looking information attributable to the Company is expressly qualified by these cautionary statements.

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