NGEx Minerals : First Quarter Report - Mar 31, 2022

NGEX MINERALS LTD.

2022 FIRST QUARTER REPORT

Management's Discussion and Analysis

and

Condensed Interim Consolidated Financial Statements

For the Three Months Ended March 31, 2022

(UNAUDITED)

NGEX MINERALS LTD.

MANAGEMENT'S DISCUSSION AND ANALYSIS

THREE MONTHS ENDED MARCH 31, 2022

(Amounts in Canadian Dollars unless otherwise indicated)

The following management's discussion and analysis ("MD&A") of NGEx Minerals Ltd. ("NGEx Minerals" or the "Company") should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2022 and related notes therein. The financial information in this MD&A is reported in Canadian dollars unless otherwise indicated and is derived from the Company's condensed interim consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. The effective date of this MD&A is May 19, 2022. Additional information about the Company and its business activities is available on SEDAR at www.sedar.comand the Company's website www.ngexminerals.com.

Some of the statements in this MD&A are forward-looking statements that are subject to risk factors set out in the cautionary note contained herein.

CORE BUSINESS

NGEx Minerals is a mineral exploration company with current exploration projects in Argentina and Chile. While the Company currently holds copper-gold and gold projects in South America, going forward it may also consider other jurisdictions and commodities with an emphasis on the quality and value-creation potential of each opportunity rather than a strict commodity or geographic focus.

The Company's current flagship asset is its Los Helados copper-gold deposit, located in Region III of Chile. The Company is the majority partner and operator of the Los Helados Project, which is subject to a Joint Exploration Agreement with its partner, Nippon Caserones Resources Co. Ltd. ("NCR"). NCR became the Company's partner on April 1, 2020 when Pan Pacific Copper ("PPC") transferred its interest in Los Helados to NCR. NCR is a subsidiary of JX Nippon Mining and Metals Corporation, a Tokyo-based mining and smelting company that also owns the Caserones Mine, located approximately 15km from Los Helados.

As of the date of this MD&A, the Company held an approximate 67% interest in the Los Helados Project. The Company has been funding 100% of the expenditures related to the Los Helados Project following the election by NCR pursuant to the JEA not to fund its share of expenditures since September 1, 2015. The sole funding of expenditures at the Los Helados Project has resulted in dilution of NCR's interest, and corresponding increases to the Company's interest.

The Company's strategy is to create value for its shareholders through prudent management and deployment of its capital resources, by expanding and increasing the quality of its mineral resources through successful exploration and acquisitions and by advancing the engineering and other studies that are required to prepare its projects for eventual development by the Company and its partners or by third parties. The overall objective is to position the Company as a top tier mineral exploration-development investment opportunity.

The Company has a strong management team and board with extensive experience in the resource sector, particularly in Chile and Argentina, where the Company's current exploration projects are located. The board and management team have an appropriate mix of geological, engineering, financial, and business skills to advance the Company's projects and to generate value for its shareholders.

The Company's most recent Mineral Resource estimate for the Los Helados Project, with an effective date of April 26, 2019, is summarized in the following table:

1

Los Helados Mineral Resource (0.33% CuEq Cutoff)

	Tonnage		Resource Grade			Contained Metal
	(million	Cu		Au	Ag	CuEq	Cu		Au	Ag
Class		(billion		(million	(million
tonnes)	(%)		(g/t)	(g/t)	(%)
		lbs)		oz)	oz)
Indicated	2,099	0.38	0.15	1.37	0.48	17.6	10.1		92.5
Inferred	827	0.32		0.10	1.32	0.39	5.8		2.7		35.1

The key assumptions, parameters, and methods used to estimate the mineral resources are contained in the 43-101 technical report for the project, entitled "Technical Report on the Los Helados Porphyry Copper-GoldDeposit, Chile", dated August 6, 2019 and authored by F. Devine, P.Geo., G. Zandonai, RMCMC, and G. Di Prisco, P.Geo. This report is available on the Company's website at www.ngexminerals.com or under the Company's profile at www.sedar.com.

The Company's common shares are listed on the TSX Venture Exchange under the symbol "NGEX".

Q1 2022 OPERATING HIGHLIGHTS AND OUTLOOK

Drill Program at Los Helados Demonstrates Continuity and Confirms Extension of High-grade Core

In late January 2022, the Company commenced its 2022 drill program at the Los Helados copper-gold project. The program is currently ongoing with three rigs and drilling is anticipated to continue until mid-June, coinciding with the onset of winter weather in South America. The program is designed to further define and potentially extend the high- grade core of the Los Helados deposit, which is defined by a 0.7% copper equivalent ("CuEq") grade shell within the current Mineral Resource model.

To date, assay results from the first three completed holes of the 2022 drill program have been received and released by the Company. Key achievements by these three holes include:

• LHDH073 infilling a 180m gap between previously completed holes and confirming continuity of the strong mineralization within the deposit's high-grade core;
• LHDH074 infilling an area where spacing between previous holes was between 170m and 270m and adding high-grade mineralization above and below the 0.7% CuEq grade shell; and
• LHDH075 extending the high-grade zone to the south.

The assay results of these three holes are summarized as follows:

			From		To		Length		Cu		Au		Ag		CuEq1
	Hole-ID		(m)		(m)		(m)	(%)		(g/t)		(g/t)	(%)
	LHDH073	124.0	1,000.0	876.0	0.56	0.28	2.1	0.74
	incl.	216.0	912.0	696.0	0.60	0.31	2.2	0.80
	incl.	314.0	524.0	210.0	0.76	0.45	2.8	1.06
	LHDH074	42.0	1,058.3	1,016.3	0.45	0.31	1.9	0.65
	incl.	136.0	890.0	754.0	0.52	0.30	2.0	0.71
	and incl.	210.0	504.0	294.0	0.60	0.41	2.1	0.87
	and incl.	606.0	746.0	140.0	0.64	0.29	2.5	0.83
	and incl.	816.0	890.0	74.0	0.58	0.25	2.5	0.74

2

LHDH075	14.0	922.0	908.0	0.39	0.24	1.3	0.55
incl.	88.0	652.0	564.0	0.47	0.29	1.4	0.65
incl.	222.0	602.0	380.0	0.51	0.31	1.6	0.70
incl.	222.0	378.0	156.0	0.59	0.42	1.7	0.86

• CuEq for drill intersections is calculated based on US$ 3.50/lb Cu, US$ 1,700/oz Au and US$ 20/oz Ag, with metallurgical recoveries of 88% for copper, 76% for gold and 60% for silver based on a comprehensive program of metallurgical testwork. The formula is: CuEq % = Cu % + (0.6117 * Au g/t) + (0.0057 * Ag g/t).

Intersections of the high-grade zone by these holes are respectively represented by the 696m interval commencing at 216m for LHDH073, the 754m interval commencing at 136m for LHDH074, and the 380m interval starting at 222m for LHDH075.

The results from the first three holes of the 2022 program continue to validate the Company's improved understanding of the deposit's geology, and provide valuable information for the Company to further refine its understanding of the controls on the higher grades at Los Helados and highlight areas for potential further extension thereof.

Four additional holes have been completed to date, with assays pending and three holes are currently underway. The objective of these additional holes are as follows:

Hole	Status	Objectives
LHDH076	Completed	To test the gap between the main high-grade zone and the
		western zone of the deposit and to test potential extension of
		the western zone.
LHDH077	Completed	To test potential southern extension of the high-grade zone.
LHDH078	Completed	To test a resistivity anomaly at the northwest edge of the
		current Mineral Resource and to test potential northern
		extension of the deposit.
LHDH079	In Progress	To test for potential extension of high-grade zone at depth.
LHDH080	Completed	To test a northwest resistivity anomaly.
LHDH081	In Progress	To test potential extension of western zone.
LHDH082	In Progress	To test for potential extension of high-grade zone at depth.

Assay results for these holes will be released as they are received, analyzed and confirmed by the Company.

The data generated from the current drill program at Los Helados will form the basis for a revised geological model and will enable evaluation of alternate development scenarios for Los Helados, exploring optionality in scale of operations and mine plan strategies, which may illustrate alternate strategies for realization of value on this asset. In addition, the drill program will provide samples for additional detailed metallurgical testwork, which will allow for optimization of process flowsheets and a better understanding of variability within the orebody.

Valle Ancho Drill Program Successfully Completed; New Copper-Gold Porphyry System Discovered

The Company concluded its 2021/2022 field and drill program at the Valle Ancho copper-gold project in Catamarca Province, Argentina, in March 2022. Based on the results of previously completed reconnaissance work and geophysical surveys, the Company focused its drill program on three high priority targets and completed 3,060m of diamond drilling in 8 holes. The highlight of the program was the discovery of a new copper-gold porphyry system at the La Quebrada target with an intersection of 596.5m of 0.50% CuEq, which merits additional work to fully evaluate.

3

The Company completed five wide-spaced reconnaissance holes at La Quebrada during its 2021/2022 campaign, three of which intersected significant intervals of copper-gold mineralization consistent with a large porphyry system. The three discovery holes were drilled to respective depths of 601m, 271m and 431m, with each ending in mineralization.

At Nordin, hole VADH001 returned 150m at 1.05 g/t Au from surface, and VADH002 intersected 198m at 0.63 g/t Au from surface, including 70m at 0.94 g/t Au. This mineralization occurs completely within oxidized rock and is characterized by even grade distribution throughout the depth of each hole. Initial assessment and interpretation suggest that the mineralization discovered in these two holes is consistent with the style of mineralization observed in the neighbouring Maricunga Gold Belt in Chile.

Overall, the Company's first drill program at Valle Ancho has been considered a success. The discoveries made at La Quebrada and Nordin have validated the results of the Company's earlier reconnaissance and target generation work, and also confirm the prospectivity of the large and underexplored Valle Ancho land package located on the Argentinian side of the Maricunga Gold Belt.

All assay results from the Company's 8-hole campaign at Valle Ancho have now been received and are summarized as follows:

Nordin Target - Near Surface, Oxide Gold Discovery
	From	To	Length	Au	Ag
Hole-ID	(m)	(m)	(m)	(g/t)	(g/t)
VADH001	0.0	150.0	150.0	1.05	0.67
incl.	4.0	128.0	124.0	1.21	0.73
incl.	36.0	56.0	20.0	2.12	0.59
VADH002	0.0	198.0	198.0	0.63	0.44
incl.	0.0	70.0	70.0	0.94	0.46
La Quebrada Target - Copper-gold Porphyry Discovery
	From	To	Length	Cu	Au	Ag	CuEq1
Hole-ID	(m)	(m)	(m)	(%)	(g/t)	(g/t)	(%)
VADH003	4.0	600.5	596.5	0.23	0.37	1.4	0.50
incl.	4.0	108.0	104.0	0.25	0.50	1.5	0.62
incl.	350.0	600.5	250.5	0.23	0.40	1.6	0.53
VADH004	No significant values
VADH005	0.0	271.0	271.0	0.12	0.26	1.1	0.32
incl.	76.0	271.0	195.0	0.14	0.29	1.2	0.36
incl.	138.0	224.0	86.0	0.15	0.33	1.5	0.40
VADH006	8.0	431.0	423.0	0.19	0.27	2.2	0.40
incl.	162.0	270.0	108.0	0.22	0.38	1.9	0.50
incl.	292.0	428.0	136.0	0.25	0.32	4.2	0.50
VADH007	No significant values

• CuEq for drill intersections is calculated based on US$ 3.50/lb Cu, US$ 1,700/oz Au and US$ 20/oz Ag, with metallurgical recoveries of 80% assumed for all metals. The formula is: CuEq % = Cu % + (0.7083 * Au g/t) + (0.0083 * Ag g/t).

Anomalia 4 Target

	From	To	Length	Cu	Au	Ag	CuEq
Hole-ID	(m)	(m)	(m)	(%)	(g/t)	(g/t)	(%)
VADH008	No significant values

4