Orogen holds 2% NSR royalty



•   Initial production started November 2021, with commercial production in Q1 2022

•   P&P Reserves: 337,000 ounces gold and 4.9 million ounces silver

•   M&I Resources (inclusive of Mineral Reserves): 406,000 ounces gold and 5.8 million ounces silver

•   Inferred Resources: 440,000 ounces gold and 10.6million ounces silver

First Majestic Silver Corp. completed its 100% earn-in for the project in September 2018, with US$1.5 million cash payment for a net smelter return (“NSR”) royalty for both Ermitaño (2% NSR) and Cumobabi (1.5% NSR) projects. During the option agreement, First Majestic paid US$75,000 upon signing the Agreement and US$50,000 each anniversary thereafter, completing over US$500,000 in exploration expenditures in the first year, and delivering a Production Notice specifying mine and construction plans with accompanying permits.

The Ermitaño Property consists of 165 square kilometres of contiguous mineral tenure located approximately 145 kilometres from Hermosillo and only 3.5 kilometres southeast of First Majestic’s Santa Elena gold-silver mine in Sonora, Mexico.

Royalty Generation Timeline

•   Ermitaño acquired by Orogen in 2011

•   Partnered to Inmet/FQM 2011-2014

•   Partnered to Silvercrest in 2014

•   First Majestic bought Silvercrest in 2015

•   Orogen invested an estimated $100,000 into Ermitaño

•   Silvercrest and First Majestic together have spent an estimated $80M developing the project

•   Production ramp up in Q1 2022

PFS Q4 2021 Highlights*:

•   Estimated US$12.25 million in revenue over next seven years

•   Only 35% of the total resources presently converted to the currently defined P&P Reserves

•   Annual 5,000 metres of underground infill drilling to increase the confidence of indicated and inferred resources and 15,000 metres of near mine drilling explore for expansions to the known mineralized areas

•   Ermitaño deposit remains open to the east and offers excellent opportunity to expand on the existing reserves and resources

* Source of Measured and Indicated resource table: https://www.firstmajestic.com/projects/exploration-development/ermitano/

Resource announced by First Majestic on November 24, 2021

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