Starcore International Mines : Financial Reporting Document

MANAGEMENT DISCUSSION & ANALYSIS

For the period ended January 31, 2021

Directors and Officers as at March 12, 2021:

Directors:

Gary Arca Robert Eadie Jordan Estra Salvador Garcia Tanya Lutzke Federico Villaseñor

Officers:

Executive Chairman, Chief Executive Officer & President - Robert Eadie Chief Operating Officer - Salvador Garcia

Chief Financial Officer - Gary Arca Corporate Secretary - Cory Kent

Contact Name:	Gary Arca
Contact e-mail address:	[e-mail]
TSX Symbol:	SAM

Suite 750 - 580 Hornby Street, Box 113, Vancouver, British Columbia, Canada V6C 3B6

Telephone: [phone] Fax: [phone] [e-mail]: www.starcore.com

January 31, 2021 Page 2

Form 51-102-F1

STARCORE INTERNATIONAL MINES LTD.

MANAGEMENT DISCUSSION & ANALYSIS

For the period ended January 31, 2021

1.

Date of This Report

This MD&A is prepared as of March 12, 2021.

This Management Discussion and Analysis ("MD&A") should be read in conjunction with the unaudited consolidated financial statements of Starcore International Mines Ltd. ("Starcore", or the "Company") for the period ended January 31, 2021.

Monetary amounts throughout this MD&A are shown in thousands of Canadian dollars, unless otherwise stated.

This MD&A includes certain statements that may be deemed "forward-looking statements". Such statements and information include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production and sales; estimates of mine life; estimates of future mining costs, cash costs, mine site costs; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company's minesite and; statements and information regarding the sufficiency of the Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks, risks associated with foreign operations; risks related to title issues; governmental and environmental regulation; and the volatility of the Company's stock price. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

January 31, 2021 Page 3

2.

Overall Performance

Description of Business

Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compañia Minera Peña de Bernal, S.A. de C.V. ("Bernal"), which owns the San Martin mine in Queretaro, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange ("TSX"). The Company is also engaged in acquiring mining related operating assets and exploration assets in North America directly and through corporate acquisitions. The Company has interests in properties which are exclusively located in Mexico, USA and Canada.

Financial Highlights for the period ended January 31, 2021:

• • Cash and short-term investments on hand is $4.0 million at January 31, 2021 compared to $2.1 million at April 30, 2020;

• • Gold and silver sales of $6.6 million for the three months ended January 31, 2021 compared to $6.3 million for the three

  months ended January 31, 2020;

• • Earnings from mining operations of $1.24 million for the three months ended January 31, 2021 compared to earnings of

  $1.27 million for the three months ended January 31, 2020;

• • Earnings of $0.7 million for the three months ended January 31, 2021 compared to earnings of $22 thousand for three

  months ended January 31, 2020;

• • Equivalent gold production of 3,063 ounces in the three months ended January 31, 2021 compared to production of 3,425

  ounces in the three months ended January 31, 2020;

• • Mine operating cash cost is US$1,042/EqOz for the three months ended January 31, 2021 compared to cost of

  US$1,022/EqOz for the three months ended January 31, 2020;

• • All-in sustaining costs of US$1,361/EqOz for the period ended January 31, 2021, compared to costs of US$1,494/EqOz

  for the period ended January 31, 2020;

• • EBITDA(1) of $6,470 for the period ended January 31, 2021 compared to $620 for the period ended January 31, 2020.

  Reconciliation of Net Income to EBITDA

For the period ended January 31,	2021	2020
Net income (loss)	$	3,767	$	(1,871)
Sale of Altiplano	-	39
Income tax expense (recovery)	(263)	(348)
Interest	24	259
Depreciation and depletion	2,942	2,541
EBITDA	$	6,470	$	620
EBITDA MARGIN(2)	29.8%	3.4%

(1) EBITDA ("Earnings before Interest, Taxes, Depreciation and Amortization") is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation market share price.

(2) EBITDA MARGIN is a measurement of a company's operating profitability calculated as EBITDA divided by total revenue. EBITDA MARGIN is a non-GAAP financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another

Corporation. The Corporation uses this non-GAAP measure which can also be helpful to investors as it provides a result which can be compared with the Corporation market share price.

January 31, 2021 Page 4

Recent Event

Sale of Toiyabe Property to IM Exploration Inc.

On March 1, 2021, the Company announced that it has entered into a binding agreement (the "Term Sheet") with IM Exploration Inc. (CSE: IM) ("IM") for the assignment of Starcore's option to acquire a 100% interest (the "Transaction") in the Toiyabe Gold Project in Lander County, Nevada (the "Project") from the Optionor, Minquest Ltd. ("Optionor" or "Minquest").

Subject to completion of the due diligence period, the signing of a Definitive Agreement, customary closing conditions and the consent of Minquest, Starcore will transfer all of its rights and IM will assume all of Starcore's obligations under Starcore's current option agreement with Minquest. Following the transfer, IM will have the right to acquire a 100% ownership position in the Project, subject to a 3% net smelter revenue royalty to be retained by Minquest.

As consideration for the transfer of Starcore's option to acquire the Project, IM will make cash and share payments to Starcore in the following amounts:

• • US$150,000 in cash to be paid upon closing of the Transaction

• • 4,100,000 common shares in the capital of IM (each, a "Common Share") to be issued upon closing of the Transaction subject to a contractual escrow period of twelve (12) months following the date of issuance, with 25% being released every three (3) months, with the first release occurring no later than 3 months after the closing of the Transaction.

Following closing of the Transaction and payments as described above, IM will have the option to exercise its right to earn a 100% ownership position in the Project by making the following cash payments to the Optionor (for an aggregate total of US$760,000):

• • US$100,000 on May 31st, 2021

• • US$120,000 on October 15th, 2021

• • US$140,000 on October 15th, 2022

• • US$400,000 on October 15th, 2023

The Company will also be responsible for annual claim payments due to the U.S. Bureau of Land Management, which totalled US$27,225 in 2020.

Raymond D. Harari, CEO & President of IM Exploration, stated: "We are very excited about the potential of the Toiyabe Project, and to secure a foothold in Nevada's Battle Mountain Trend, North America's most endowed gold belt. This transaction represents an important milestone for IM and its shareholders and opens the door for future growth".

Technical Notices

The technical contents of this news release were approved by Paul D. Noland, P. Geo, a qualified person as defined by National Instrument 43-101. Mr. Noland is independent of the Company within the meaning of National Instrument 43-101. The Qualified Person has not completed sufficient work to verify the historic information on the Project; particularly the indicated resource; however, given the quality of the historic work and the reputation of Starcore and Minquest believes the historical resources estimates to be both relevant and reliable. The information provides an indication of the exploration potential of the Property but may not be representative of expected results. Historical drill results reported herein have not been verified by the Company, as the historical drill core is no longer available, and hence these results should not be relied upon.

About IM Exploration Inc.

The Company is a mineral exploration company, currently exploring for graphite, gold, and other minerals at its early-stage Mulloy Project in Northern Ontario. From time to time the Company may also evaluate the acquisition of other mineral exploration assets and opportunities.