Gatos Silver : Corporate Presentation

Executing on our Growth Strategy

Corporate Presentation

February 2024

NYSE/TSX: GATO	|	g a t o s s i l v e r . c o m

Disclaimer

Cautionary Note Regarding Forward-Looking Statements

This presentation contains statements that constitute "forward looking information" and "forward-looking statements" within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this presentation, including statements regarding silver demand growth including for photovoltaic use, potential mine life extension, expected cash distributions from the LGJV, timing of delivering a new life of mine plan, cost guidance, future production, sustainability of cash flows, future cash balances, go-forward capital requirements, growth initiatives, capital expenditure requirements, prospective Los Gatos district-scale potential, mineral resource and reserve estimates, timing of issuing updated mineral resource and mineral reserve estimates, future operating and capital costs, potential productivity, cost and margin improvements, future mill throughput rates, potential results from exploration (including strategic targets to maintain production, identify and delineate additional resources or reserves, and extend mine life through resource conversion, South-East Deeps and near-mine exploration) are forward-looking statements. Forward-looking statements are based on management's beliefs, assumptions, current expectations about future events and on information currently available to management including without limitation assumptions about commodity prices, mining methodologies, the accuracy of Mineral Reserve and Resource estimates, operating and capital costs, plant throughput and processing recoveries, favourable operating conditions, and include other assumptions set out herein and set out in the 2023 Technical Report (defined below). Such statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements including without limitation, commodity prices, change in regulations, failure to retain or obtain permits and licenses, environmental risks, cost and timing of exploration, development and production, opposition to mining may arise, labour interruptions, other general risks associated with mining operations and such other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this presentation to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved, and as such, readers should not place undue reliance on forward-looking statements. Forward looking statements speak only as of the date of this presentation.

Notice Regarding Mineral Disclosure

The mineral resource and reserve estimates and LOM plan presented are based on a variety of estimates and assumptions relating to, among other things, geological interpretation, statistical inferences, commodity prices, mining methodologies, operating and capital costs, plant throughput and processing recoveries and operating conditions. In particular, material assumptions and risks include those described in our press release dated September 6, 2023 and in the technical reports filed by Gatos Silver, Inc in October 2023 on EDGAR and SEDAR+ (the "2023 Technical Report"), including metal prices, as well as our ability to reduce operating costs, increase ramp development rates and dewater the mine in a cost-effective manner. There can be no assurance that the assumptions will actualize or be correct, and changes to any of these assumptions or our inability to achieve these assumptions may result in actual results to deviate significantly from those in this presentation.

Inferred mineral resources are subject to uncertainty as to their existence and as to their economic and legal feasibility. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.

Qualified Persons

Scientific and technical disclosure in this press release was approved by Anthony (Tony) Scott, P.Geo., Senior Vice President of Corporate Development and Technical Services of Gatos Silver who is a "Qualified Person" as defined in S-K 1300 and NI 43-101.

Non-GAAP Financial Performance Measures

This presentation contains non-GAAP financial performance measures. See Appendix slides 32-3 for more information on these non-GAAP financial performance measures and GAAP reconciliation.

All dollar amounts are expressed in, and references to "$" refer to, United States dollars unless otherwise noted.

For 2022 and 2023, silver equivalent production is calculated using price assumptions of $22/oz Ag, $1.20/lb Zn, $0.90/lb Pb, and $1,700/oz Au to "convert" zinc, lead and gold production contained in concentrate to "equivalent" silver ounces (contained metal, multiplied by price, divided by silver price). For 2024 guidance, silver equivalent production is calculated using price assumptions of $23/oz Ag, $1.20/lb Zn, $0.90/lb Pb, and $1,800/oz Au.

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Investment Highlights

1 High Quality, Large-Scale Silver Operation in a Proven Jurisdiction

2 Organic Growth Strategy with Significant Upside Potential

3 Demonstrated and Continuing Free Cash Flow Generation

4 Well-capitalized with a Growing Cash Balance

5 Resolute Commitment to Responsible Mining 6 Experienced Management Team

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Gatos Silver, Inc.

A leading low-cost silver producer

• A silver-focused exploration, development and production company
• • Key position in established silver district
• 70% owned district, with modern, mechanized underground operation
• • Strong JV partner, Japan's Dowa Metals & Mining Co., Ltd (30%)

Los Gatos District

• Located in Chihuahua State, Mexico
• Cerro Los Gatos mine operating since 2019
• Over 103,000 hectares of mineral rights

9.2 Moz Ag

14.3 Moz AgEq

2023 Production

64%

Silver Exposure(1)

$11.33/oz

2023 AISC(2) (by-product)

$47M

2023 FCF(2)

$53M

GSI Net Cash(3)

$403M

GSI Market Cap.(4)

LGJV (100% basis)		Gatos Silver

4

Cerro Los Gatos

Large scale, low-cost and high-margin

CLG is one of the largest primary silver mines globally(1)

	25	23.5	23.3	23.0	22.4										Silver Equivalent
(Moz)										Silver
20					19.1
Production
15						14.8	14.3		14.2		12.3
													10.3
Eq.	10		16.8
Silver/			12.8		13.3	12.8					6.6		6.4	5.7
5	12.1		9.7		9.2
Silver
0
	Saucito	Juanicipio	Fresnillo	Greens Creek	San Julian	Dukat		CLG	Palmarejo	San Dimas	Las Chispas
		(Fresnillo)	(56% Fresnillo	(Fresnillo)	(Hecla)	(Fresnillo)	(Polymetal)	(70% Gatos)		(Coeur)	(First	(SilverCrest)
			/ 44% MAG)											Majestic)

Gatos Silver is one of the lowest cost silver producers

Comparative advantages of CLG

✚ High-grade primary silver deposit with

substantial by-products

✚ Deposit geometry and vein width allows for

efficient, mechanized mining methods

✚ Modern, well-capitalized mine, mill and

surface facilities

✚ Proven operating team that continues to

optimize the asset and elevate targets

✚ Very attractive AISC(2)

✚ Stable free cash flow generation of ~$75M /

By-product AISC(2)(3) ($/oz Ag)

$25

Peer High

$20

Peer Avg.

$15
$10
$5	$11.33
$0
4 Peers	Gatos

Co-product AISC(2)(3) ($/oz AgEq.)

$25

Peer High

$20	Peer Avg.
$15
$10		$15.51
$5
$0	3 Peers	Gatos

year(2)

✚ Significant asset upside and district potential

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Silver producer peers include Hecla, Coeur, First Majestic, Fresnillo, MAG, SilverCrest and Endeavour Silver. 4 peers report By-product AISC, while 3 peers report Co-product AISC; both methods are shown for Gatos Silver. See endnotes for further details.

Our Growth Story

• Mine debottlenecking to utilize proven higher mill capacity
• • Mill has demonstrated potential of 3,500 tpd vs. actual 2,935 tpd in 2023
  • Original design capacity: 2,500 tpd
• Further drilling to build reserves
• • In 2023 - extended mine life by 3 years to 2030 and maiden resource on SE Deeps announced
  • • Increased expected LOM silver production by 46%
  • Extensive infill drilling at SE Deeps underway with 7 surface rigs, to be completed by end of March 2024
• Clear path to further growth
• • Targeting to add an additional 3 years of mine life by Q3 2024
  • • Studying potential to increase mill capacity to 4,000 tpd
  • Identified exciting near-mine and district drill targets - drilling planned in 2024

(LOM Plan from July 1, 2023 forward)	2023 Plan	2022 Plan	Change (%)
Total Mill Throughput (Mt)	8.08	5.03	61%
Total Silver Production (Moz)	49.7	34.1	46%
Total Silver Equivalent Production (Moz)	93.1	62.0	50%

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Meaningful Near-term Growth Targets

Near-term growth and resource expansion - 3-year mine life extension target(1) and value enhancement

• South-EastDeeps conversion drilling nearing completion
• • Targeting +3-year mine life extension in Q3 2024(1)
  • ~45km drilled Mar to Dec 2023, with ~15km additional planned before March 2024
  • Infill drilling to 50m spacing, prioritizing higher-grade trends
• Value enhancement studies progressing
• • Production growth
  • • Expansion to 4,000 tpd rate being evaluated in conjunction with additional reserve growth
    • Low capital expected
  • Margin enhancement projects
  • • Copper separation circuit producing copper concentrate
    • Recovery improvement projects, considering options for Ag, Au and Zn through leach or fines recovery

(2)

(2)

(2)

Select SE Deeps resource definition drilling results from 2023 program(3)

Drillhole	Drill Width	ETW	Ag	Zn	Pb	Au	Cu
	m	m	g/t	%	%	g/t	%
GA-SE-515	3.5	2.8	160	11.26	6.04	0.07	0.61
GA-SE-520	3.0	2.7	212	17.33	3.49	0.45	0.92
GA-SE-530	3.9	2.9	550	24.53	13.74	0.46	0.30
GA-SE-534	3.8	3.2	765	3.00	4.17	0.58	1.75
GA-SE-DV-540	3.5	2.8	457	0.92	2.85	0.08	2.13
GA-SE-544	3.5	2.9	140	17.11	5.61	0.19	0.47
GA-SE-547	4.0	3.4	243	0.95	1.36	0.21	1.17
GA-SE-557	3.0	2.8	528	0.32	1.26	0.06	1.41
GS-SE-559	5.1	4.0	103	16.49	7.01	0.14	0.21	7
GA-SE-560	4.0	3.3	243	9.74	6.01	0.39	0.28

Increasing Exploration in 2024

$18 M drill program planned

Near-term growth and resource expansion

• Exciting near-mine mineralization and targets
• • SE Deeps - extension along strike to SE and NW
  • NW offset; Central and NW Deeps - offset by faulting
  • Portigueño - area of significant faulting and veins extending SE of CLG
  • Mamba / Cascabel / Santa Ana areas - fault structures parallel to CLG
  • Esther - inferred resource located ~3km from CLG
• 2 surface drills started in Q4 2023 on high priority near mine targets

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Significant District-scale Potential

• Foundational data acquisition and prioritizing district targets
• • Highly prospective geological setting
  • Extensional basin and large, regional NW structures
  • Exposed andesite lithology host to numerous vein systems
• Increasing district drilling starting in Q2 2024
• • 2-3drills previously on CLG definition program focusing on district targets
  • Los Rieles, Diana & Lince located ~20 km NW of CLG
  • San Luis located ~5km NW of CLG

Pipeline of over 50 greenfields exploration targets

Esther	Stage 4 - Inferred resource
San Luis, San Agustin, Wall-e, Amapola, Boca de	Stage 3	- Significant drill results
Leon, La Paula
Portigueno, El Lince, Los Rieles, Alma, Cascabel, El	Stage 2	- Indications of mineralization
Valle, Boquillita, Mezcalera, Cieneguita +others
Los Veranos, Lince NW, +others	Stage 1	- Conceptual

Executing on our low-risk organic growth strategy to realize Los Gatos district-scale potential

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2024 Guidance

Significant producer with attractive all-insustaining costs(2)

	CLG 2024 Full Year Guidance (100% basis)		2024		2023
		Guidance		Actual
	Production - Contained Metal
	Silver (Moz)	8.4	- 9.2	9.21
	Zinc (Mlb)		61 - 69	57.3
	Lead (Mlb)	40	- 46	38.9
	Gold (koz)	4.5	- 5.5	5.26
	Silver Equivalent (Moz)(1)	13.5	- 15.0	14.33
	All-in Sustaining Costs (AISC)(2)
	Co-product basis ($/oz AgEq payable)	$14.00	- $16.00	$15.51
	By-product basis ($/oz Ag payable)	$9.50 - $11.50	$11.33
	Sustaining capital ($M)(3)	$45.0	$41.6
	Exploration and definition drilling ($M)(4)	$18.0	$16.4
	(Includes resource development drilling)

• Continued strong Free Cash Flow (FCF) expected in 2024
• • Mill throughput expected average between 3,000 and 3,300 tpd
  • • Expected to offset planned lower grades, helping to maintain silver production near 2023 levels
  • Higher throughput and higher Zn & Pb volumes expected to support low by-product AISC
• Capital expected to be slightly higher than 2023
• • Most sustaining capital related to mine development
  • Focus is on ramping up mining rates to match mill capacity during 2024
• Resource development drilling continues(4)
• • $ 9 M in 2024, which is expected to be capitalized, is aimed at converting resources to reserves to extend mine life

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