Discovery Silver : Earnings Document

MANAGEMENT'S DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2022, and 2021

Dated November 23, 2022

DISCOVERY SILVER CORP.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022, and 2021

(Expressed in Canadian dollars, except where otherwise noted)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

This Management's Discussion and Analysis ("MD&A") should be read in conjunction with the unaudited condensed interim consolidated financial statements of Discovery Silver Corp. ("Discovery Silver" or "the Company"), for the three and nine months ended September 30, 2022 ("Q3 2022" and "Q3 2022 YTD") and the related notes contained therein, which were prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") of the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Additional information relating to the Company, including the most recent Annual Information Form ("AIF") for the year ended December 31, 2021, and the Company's audited consolidated financial statements for the year ended December 31, 2021, are available on SEDAR at www.sedar.com. The information provided herein supplements, but does not form part of, the interim financial statements and includes financial and operational information from the Company's subsidiaries. This discussion also covers the three and nine months ended September 30, 2021 ("Q3 2021" and "Q3 2021 YTD"). This document contains forward-looking statements and forward-looking information. Refer to the cautionary language under the section entitled "Cautionary Statement on Forward-Looking Statements" in this MD&A. All dollar ($) amounts are expressed in Canadian dollars ("CAD"), the Company's reporting currency, except where otherwise noted. References to United States dollars are denoted as ("USD").

The Company's certifying officers, based on their knowledge and having exercised reasonable diligence, are responsible to ensure that this MD&A and related condensed interim consolidated financial statements do not contain any untrue statement of material fact, and do not omit any required statement of material fact with respect to the periods reported. The condensed interim consolidated financial statements, together with the other financial information included in this MD&A, present fairly in all material respects the financial condition, results of operations and cash flows of the Company at the date of and for the periods presented in this MD&A. This MD&A contains forward looking information that is subject to risk factors set out in the cautionary note herein.

The Company's Board of Directors' (the "Board") review is accomplished principally through the Company's Audit Committee, which meets periodically to review all financial reports, prior to filing. The Board has approved the condensed interim consolidated financial statements and this MD&A, as well as ensured that the Company's management ("Management") has discharged its financial responsibilities. The information included within this MD&A is prepared as at November 23, 2022.

DESCRIPTION OF BUSINESS

The Company was incorporated on October 10, 1986 under the laws of British Columbia as Ayubowan Capital Ltd. On June 13, 2017, the Company's name was changed to Discovery Metals Corp. On April 14, 2021, the Company's name was changed to Discovery Silver Corp. The Company is listed on the TSX Venture Exchange (the "Exchange" or "TSXV") under the symbol "DSV" and the OTCQX Market® under the symbol "DSVSF". The Company's head office is located at Suite 701 - 55 University Avenue, Toronto, Ontario, M5J 2H7.

Discovery's flagship asset is the 100%-owned Cordero silver project ("Cordero" or the "Project") located in Chihuahua State, Mexico. The completion of a Preliminary Economic Assessment ("PEA") in 2021 confirmed Cordero's potential to be developed into a highly capital efficient mine that offers the combination of margin, size, scalability, and strong leverage to the silver price. The Company's current focus is on the delivery of a Pre- Feasibility Study ("PFS") on the Project, expected to be released during the first quarter of 2023. Additional

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DISCOVERY SILVER CORP.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022, and 2021

(Expressed in Canadian dollars, except where otherwise noted)

information relating to the Company is available on SEDAR at www.sedar.comand on the Company's website at www.discoverysilver.com.

COVID-19 - DISCOVERY SILVER'S RESPONSE AND CONTINUITY PLANS

The Company has successfully maintained drilling and other operations at the Cordero Project with measures in place to facilitate enhanced physical distancing to limit the potential spread of the COVID-19 virus. We are continuing to be proactive, closely monitoring the situation, while attempting to mitigate the health and safety risks resulting from the pandemic. The Company's priority remains the health and safety of its employees, contractors, vendors, and consultants. The Company continues to monitor the directives of the governments and health authorities in Mexico and Canada. To-date, health and safety protocols and the efforts of employees and contractors to manage COVID-19 have been effective, and the Company continues with the same focus and management for its Feasibility Study drill program.

Q3 2022 HIGHLIGHTS

PROJECTS

During Q3 2022, the Company issued several news releases announcing results from exploration activities at the Cordero Project, in addition to corporate development initiatives.

Cordero

Cordero - Phase 2 PFS resource expansion drilling

On July 13, 2022, the Company announced results from 22 holes from its Phase 2 drill program on the Cordero silver project in Chihuahua State, Mexico. These drill results were focused on the expansion of the open pit and the resource in the northeast of the deposit, to be incorporated in a resource update and PFS scheduled for completion in Q1 2023.

Highlight intercepts include:

• C22-610intercepted 32.6 m averaging 388 g/t AgEq (115 g/t Ag, 0.05 g/t Au, 3.7% Pb and 4.1% Zn) from 226.6 m, including 17.8 m averaging 660 g/t AgEq (187 g/t Ag, 0.05 g/t Au, 6.5% Pb and 7.2% Zn); the intercept was more than 700 m outside the current resource and approximately 180 m below historic workings at surface
• C22-605intercepted 38.6 m averaging 265 g/t AgEq from 27.2 m (89 g/t Ag, 0.13 g/t Au, 1.8% Pb and 3.0% Zn) within an area previously modeled as low grade/waste
• C22-596intercepted 60.3 m averaging 184 g/t AgEq from 77.2 m (49 g/t Ag, 0.06 g/t Au, 1.2% Pb and 2.5% Zn) approximately 130 m outside the current resource
• C22-609,the furthest northeastern hole drilled by the Company, intercepted 33.1 m averaging 150 g/t AgEq from 233.7 m (54 g/t Ag, 0.08 g/t Au, 0.5% Pb and 1.3% Zn) and 17.7 m averaging 115 g/t AgEq (35 g/t Ag, 0.01 g/t Au, 0.9% Pb and 1.4% Zn) from 198.2 m

This current set of Phase 2 drill holes was focused on expansion of the open pit and the resource in the northeast of Cordero. The drilling in this part of the deposit is widely spaced with drill spacing typically ranging from

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DISCOVERY SILVER CORP.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022, and 2021

(Expressed in Canadian dollars, except where otherwise noted)

approximately 50 m to 250 m. Follow-upstep-out and infill drilling in this area will be planned once the resource model has been updated in 4Q 2022 with this new drill data. C22-610 intercepted a mineralized fracture system approximately 180 m below historic workings at surface that returned 32.6 m of 388 g/t AgEq1 from 226.6 m. C22-609, collared approximately 300 m to the northwest of C22-610, confirmed the potential depth extensions of three parallel sets of historic workings at surface. These holes are the northeastern-most holes drilled by the Company and intercepted mineralization up to 500 m outside the current resource. Historic surface workings extend at least 200 m further to the northeast, highlighting the potential for resource growth in this part of the deposit.

Refer to the Press Release dated July 13, 2022, available on SEDAR at www.sedar.comand on the Company's website at www.discoverysilver.com.

Pre-Feasibility Study Metallurgical Test Results

On August 29, 2022, the Company announced results from its Pre-Feasibility Study ("PFS") metallurgical test program at the Cordero Project. The comprehensive locked-cycle flotation test work was performed on representative samples, designed to supplement the detailed metallurgical test program completed in 2021 and included the Company's first ever testing of rock type blends, high grade samples, and oxide-sulphide blends. Test work was also focused on optimizing reagent usage. All test work was completed at a coarse grind size of ~210 micron.

Highlights from the locked-cycle flotation test work include:

• Silver recoveries of 94-98%, lead recoveries of 89-97% and zinc recoveries of 92-96% on high grade samples of all major rock types.
• Silver recoveries of 83-92%, lead recoveries of 85-92% and zinc recoveries of 81-89% on medium grade samples of blended rock types.
• Oxide-sulphideblend testwork establish oxide-specific recoveries of ~60% for silver, ~40% for lead and ~85% for zinc via flotation; co-processing oxide mineralized material via flotation eliminates the need for heap leach processing at Cordero.
• Test work overall confirmed higher recoveries than what was assumed in the 2021 Preliminary Economic
  Assessment ("PEA").
• All tests were completed at a coarse grind size of p80 passing ~210 micron and demonstrated significantly lower reagent consumption than assumed in the PEA.
• Saleable concentrate grades confirmed and levels of penalty elements for concentrates were insignificant.

These metallurgical test results demonstrate the exceptional metallurgical properties of the Cordero deposit. Recoveries typically ranged from 85-95% at an extremely coarse grind size of ~210 micron. On average, sulphide recoveries were higher than the recoveries included in the PEA, at a significantly lower reagent consumption, highlighting the potential for reduced processing costs. In addition, the flotation testwork of an oxide-sulphide blend returned very positive results with economic recoveries for oxide mineralization for silver, lead and zinc. These results allowed for the elimination of the planned heap leach circuit in the PFS, that will streamline the crushing/grinding circuit, potentially reduce upfront capital expenditures, and simplify the permitting process.

Refer to the Press Release dated August 29, 2022, available on SEDAR at www.sedar.comand on the Company's website at www.discoverysilver.com.

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DISCOVERY SILVER CORP.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022, and 2021

(Expressed in Canadian dollars, except where otherwise noted)

Final Phase 2 Drill Holes at Cordero

On September 28, 2022, the Company announced results from the final 26 drill holes from its Phase 2 drill program on the Cordero silver project in Chihuahua State, Mexico. These drill holes consisted of upgrade and expansion drilling of the PEA pit and expansion drilling of the 2021 resource pit that will be used to support the PFS planned for early 2023.

Highlight intercepts from Phase 2 drilling include:

• 58 m averaging 208 g/t AgEq1 (99 g/t Ag, 0.33 g/t Au, 1.6% Pb and 1.0% Zn) from 78 m and 48 m averaging 231 g/t AgEq1 (100 g/t Ag, 0.63 g/t Au, 1.8% Pb and 0.8% Zn) from 148 m in hole C22-614. These intercepts were from upgrade drilling within the PEA starter pit.
• 125 m averaging 111 g/t AgEq1 (37 g/t Ag, 0.04 g/t Au, 0.4% Pb and 1.6% Zn) from 265 m in hole C22-
• 1. This intercept was directly below the 2021 resource pit in an area previously modeled as waste.
• 42 m averaging 201 g/t AgEq1 (76 g/t Ag, 0.06 g/t Au, 1.0% Pb and 2.4% Zn) from 453 m in hole C22-
• 1. This interval is located approximately 20 m below the resource pit.
• 86 m averaging 120 g/t AgEq1 (32 g/t Ag, 0.02 g/t Au, 0.1% Pb and 2.2% Zn) from 716 m in hole C22- 636, highlighting the mineralization potential at depth.

The recently completed Phase 2 drill program consisted of approximately 80,000m, in over 250 drill holes. The program consistently intercepted mineralization beneath, and to the northeast, of the open pit outlined in the PEA. Drilling returned several exceptional intercepts that further highlight the existing potential of the expansion of the open pit for inclusion in the upcoming PFS in 2023. Additionally, resource expansion drilling continued to demonstrate the continuity of mineralization beneath the resource constraining pit, indicating the potential to expand the resource at depth in the northeast part of the deposit. Drilling also continues to intercept broad zones of mineralization at significant depths that could correlate with the deep feeder structures of the mineralized system at Cordero.

Property Wide Exploration

Surface exploration work has been ongoing at Cordero since March 2021, with the five main surface exploration targets being, Sanson, Porfido Norte, Dos Mil Diez, Molino de Viento, and La Perla. Discovery so far has completed preliminary reconnaissance-style drilling at Sanson and Porfido Norte consisting of 10 drill holes totaling 4,500 m.

At Sanson, located two kilometres northeast of the main resource area, seven drill holes have been completed. Drill targeting was based on surface alteration, a magnetic anomaly indicating a proximal intrusive body, and surface mapping of intrusive rocks and breccias. Six of the holes intersected very strongly silicified and sericite- altered rhyodacite, breccias and sedimentary rocks with traces of quartz-molybdenite veining that returned anomalous levels of molybdenum (100 - 400 ppm) and silver (260 - 270 ppm) over 10's of metres.

At Porfido Norte, three drill holes were completed following surface mapping and rock sampling. Historic IP geophysics indicated the presence of an intrusive body at depth and mapping identified several intrusive sills at surface. Drilling intersected sparse, very narrow (<10cm) mineralized sulphide veins within the intrusive rocks that returned anomalous Ag, Au, and Zn values.

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