NGEx Minerals : Second Quarter Report - Jun 30, 2022

NGEX MINERALS LTD.

2022 SECOND QUARTER REPORT

Management's Discussion and Analysis

and

Condensed Interim Consolidated Financial Statements

For the Three and Six Months Ended June 30, 2022

(UNAUDITED)

NGEX MINERALS LTD.

MANAGEMENT'S DISCUSSION AND ANALYSIS

THREE AND SIX MONTHS ENDED JUNE 30, 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 and six months ended June 30, 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 August 25, 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 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. 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 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 68% interest in the Los Helados Project. The Company has been funding 100% of the expenditures related to the Los Helados Project since the election by NCR pursuant to the JEA not to fund its share of expenditures in 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 most recent Mineral Resource estimate for the Los Helados Project, with an effective date of April 26, 2019, is summarized in the following table:

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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".

Q2 2022 OPERATING HIGHLIGHTS AND OUTLOOK

2022 Drill Program Successfully Completed at Los Helados, Confirming Multiple High-grade Centres

The Company's 2022 drill program at Los Helados concluded in June 2022, coinciding with the onset of winter weather in South America. The campaign completed 10,312 metres in 10 holes, three of which will be deepened when the Company restarts drilling, currently planned for October 2022.

The drill campaign undertaken at Los Helados has successfully:

• Expanded, and demonstrated continuity of, mineralization associated with the high-grade breccia phase at the core of the current Mineral Resource at Los Helados, now called the Condor Zone. The Condor Zone was the main target of the Company's 2022 program, and drilling sought to confirm continuity of the high-grade mineralization through infill drilling, and test the potential for extension as guided by a recent reinterpretation of the Los Helados geological model;
• Confirmed the existence of a second high-grade centre to the Los Helados deposit, the Fenix Zone, located at the western edge of the current Mineral Resource. The Fenix Zone remains open at depth, towards the surface, and laterally. Most importantly, the identification and confirmation of the Fenix Zone as a separate and distinct mineralized feature from the Condor Zone validates the Company's recently revised geological interpretation, which hypothesizes that the Los Helados deposit contains multiple centres of high-grade mineralization and that elevated grades may not necessarily dissipate towards the edges of the deposit;
• Discovered a third distinct, high-grade centre to the Los Helados deposit, the Alicanto Zone, located 550m north of the Condor Zone, which further affirms the Company's reinterpretation of the geological model. The Alicanto Zone was discovered by drillhole LHDH078, which returned 474.8m at 0.61% copper equivalent ("CuEq"), including 100.0m at 1.20% CuEq. This newly discovered zone of high-grade mineralization remains open in all directions, and will be a high priority drill target for the Company's upcoming drill campaign.

The results from the Company's 2022 drill campaign at Los Helados have demonstrated the potential to add significantly more high-grade material at Los Helados, through continued expansion of the known zones and the discovery of new high-grade satellite structures, like the Fenix and Alicanto Zones. In addition, the results from this program have provided validation of the Company's current geological interpretation of the Los Helados deposit, which will form the basis for ongoing exploration.

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Assay results received, analyzed and released by the Company during and subsequent to the second quarter of 2022 are summarized as follows:

	From	To	Length	Cu	Au	Ag		CuEq1	Zones
Hole-ID	(m)	(m)	(m)	(%)	(g/t)	(g/t)		(%)	Intersected
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	Condor Zone
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	Condor Zone
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
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	Condor Zone
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
LHDH076	110.0	1,400.0	1290.0	0.60	0.21	2.3	0.74
incl.	138.0	922.0	784.0	0.63	0.25	1.9	0.80	Condor Zone
incl.	138.0	542.0	404.0	0.77	0.35	2.2	1.00
and incl.	1,166.0	1,400.0	234.0	0.80	0.24	4.5	0.97
incl.	1,166.0	1,308.0	142.0	1.14	0.35	3.8	1.38	Fenix Zone
incl.	1,384.0	1,400.0	16.0	0.86	0.19	23.4	1.11
LHDH077	0.0	989.0	989.0	0.51	0.27	1.7	0.69
incl.	42.0	778.0	736.0	0.58	0.32	1.9	0.79
incl.	328.0	548.0	220.0	0.69	0.41	2.4	0.95	Condor Zone
incl.	328.0	452.0	124.0	0.71	0.47	2.6	1.02
Upper ext.	42.0	150.0	108.0	0.53	0.38	1.6	0.77
Lower ext.	526.0	778.0	252.0	0.57	0.20	2.0	0.71
LHDH078	566.0	1,040.8	474.8	0.55	0.08	1.7	0.61	Alicanto
incl.	700.0	1,040.8	340.8	0.67	0.09	2.0	0.73
Zone
incl.	844.0	944.0	100.0	1.10	0.14	2.1	1.20

• 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).

• Los Helados hosts large-scale porphyry and associated breccia mineralization and drilled lengths are interpreted to be approximate true widths. Drill hole LHDH078 is the only hole into the Alicanto Zone and additional drilling is required to define the geometry of this zone and understand the true width of this intersection.

One additional hole has been completed to date, with assays pending, and three holes are currently suspended and planned to be resumed during the Company's next drill campaign commencing in or around September 2022. The objective of these additional holes are as follows:

Hole	Status	Objectives
LHDH079	Completed;	To test for potential extension of the Condor Zone at depth.
	Assays pending
LHDH080	Suspended	To test a northwest resistivity anomaly.
LHDH081	Suspended	To test continuity and potential extension of the Fenix Zone.
LHDH082	Suspended	To test for potential extension of the Condor Zone at depth.

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

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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. 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.

New Copper-Gold Porphyry System Discovered at Valle Ancho

In May 2022, the Company confirmed its discovery of a new copper-gold porphyry system at the La Quebrada target with an intersection of 596.5m of 0.50% CuEq.

The 2021/2022 drill campaign at Valle Ancho consisted of 3,060 metres of diamond drilling in eight holes at three high priority targets. At La Quebrada, five wide-spaced reconnaissance holes were completed, 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. These are the first holes ever drilled by the Company at La Quebrada and the discovery will be an exciting target of future drill campaigns at Valle Ancho, as the Company looks to better understand extent, geometry and controls of this mineralization.

All assay results from the five holes completed at La Quebrada are summarized as follows:

La Quebrada - 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).

The Company's interest in the Valle Ancho project, comprised of the Valle Ancho and Interceptor properties, is held through an option agreement with the Province of Catamarca, whereby it may earn a 100% interest in Valle Ancho, by making US$8.0 million in total project expenditures by the end of 2022. As of the date of this MD&A, the Company anticipates making the remaining earn-in expenditures prior to the required deadline with additional expenses related to ongoing technical analysis of the results of the Company's first drill campaign at Valle Ancho.

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