Starcore International Mines : Financial Reporting Document

MANAGEMENT DISCUSSION & ANALYSIS

For the period ended July 31, 2021

Directors and Officers as at September 13, 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. [e-mail] website: www.starcore.com

Starcore International Mines Ltd.

MD&A

July 31, 2021

Page 2

Form 51-102-F1

STARCORE INTERNATIONAL MINES LTD.

MANAGEMENT DISCUSSION & ANALYSIS

For the period ended July 31, 2021

1. Date of This Report

This MD&A is prepared as of September 13, 2021.

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

Starcore International Mines Ltd.

MD&A

July 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 July 31, 2021:

• Cash and short-term investments on hand is $4.9 million at July 31, 2021 compared to $4.4 million at April 30, 2021;
• Gold and silver sales of $6.2 million for the period ended July 31, 2021 compared to $8.1 million for the period ended July 31, 2020;
• Earnings from mining operations of $1.6 million for the period ended July 31, 2021 compared to earnings of $2.9 million for the period ended July 31, 2020;
• Earnings of $0.9 million for the period ended July 31, 2021 compared to loss of $1.7 million for period ended July 31, 2020;
• Equivalent gold production of 2,895 ounces in the period ended July 31, 2021 compared to production of 3,259 ounces in the period ended July 31, 2020;
• Mine operating cash cost is US$1,177/EqOz for the period ended July 31, 2021 compared to cost of US$929/EqOz for the period ended July 31, 2020;
• All-insustaining costs of US$1,387/EqOz for the period ended July 31, 2021, compared to costs of US$1,220/EqOz for the period ended July 31, 2020;
• EBITDA(1) of $1,879 for the period ended July 31, 2021 compared to $2,739 for the period ended July 31, 2020.

Reconciliation of Net Income to EBITDA(1)

For the period ended July 31,		2021		2020
Net income (loss)	$	935	$	1,663
Loss on sale of exploration property		39		-
Income tax expense (recovery)		80		(53)
Interest		44		66
Depreciation and depletion		781		1,063
EBITDA	$	1,879	$	2,739
EBITDA MARGIN(2)		30.5%		33.9%

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.

Starcore International Mines Ltd.

MD&A

July 31, 2021

Page 4

Recent Event

Acquisition of the Teocuitla Claims next to the El Creston Project in Opodepe, Sonora State, Mexico

The Company announced the acquisition of 3087.7691 hectares of the Teocuitla claims from Minera Teocuitla SA de CV of Hermosillo, Sonora, Mexico. The Teocuitla claims are located in Opodepe, Sonora, Mexico beside the El Creston Meztli 4 claim in the northwest part of the Company's 11,000 Ha property. The El Creston deposit is a well-known and defined Molybdenum deposit, but the property has never been explored for precious metals. The Company refers its readers to the "Preliminary Economic Assessment, El Creston Project, Opodepe, Sonora, Mexico" dated December 16, 2010 ("PEA") prepared for Creston Moly Corp. and filed on SEDAR on December 20, 2010. The PEA provides information on El Creston that is historical and the Company cannot guarantee the accuracy of the data presented therein. The reader is cautioned not to place undue reliance on the historical data or its implications that have been derived from third-party sources. The PEA is referenced herein solely for historic context and background.

"We are extremely pleased to have made this acquisition and to be able to look at the El Creston Project in three different ways - one as a moly deposit; another as a property with gold showings; and thirdly, as a project with the potential for copper porphyry at depth," commented Robert Eadie, CEO and a director of the Company. "The property offers exciting exploration potential in the friendly mining state of Sonora, Mexico".

The Company conducted a six-month exploration plan which included more than 1600 samples taken in the outcrops of nine new discovered veins in the Teocuitla claims, with a focus on gold and silver orebodies. The initial results of the exploration program are outlined below:

Table 1: Assay Results of the samples taken from MEZTLI4 and TEOCUITLA Claims

# Targets	Target	Claim	Recognized surface			Economic length		Economic width	Au g/t	Ag g/t
length(mt)			(mt)Surface		(mt)Surface
1	Mana System		2100		300	1.07	0.52	250
2	KarlaSystemNW	Meztli 4	1815		280	0.53	3.52	13
3	KarlaSystemSW	480		190	0.61	1.53	64
4	ElGuerigo Breccia		1800		110	0.98	0.11	162
5	San Gerónimo				Stockpile Samples			0.40	214
6	Midas Vein	Newclaims	580			190		0.73	0.09	147
7	La Aurora - La Espinada Vein		Stockpile Samples			0.21	241
acquired
8	La Última				Old mining non visited
9	El Oro	Other claim	500	70	0.53	10.30	5

Table 2: New claims acquired

No.	LOTE	SURFACE (Ha)
1	MEZTLI	89.000
2	MEZTLI 1	8.0000
3	LORENIA	138.0000
4	ALMA	359.000
5	LETTY	391.5093
6	MEZTLI 2	1,455.9816
7	MEZTLI 6	0.0032
8	MEZTLI 4	8,465.0445
9	MEZTLI 3	457.0564
	TOTAL PREVIOUSLY OWNED	11,363.5950
No.	NEW CLAIMS ACQUIRED
1	TEOCUITLA	1,476.1874
2	TEOCUITLA 2	925.9102
3	ANGEL	185.6715
4	TLALOC 2	500.0000
	TOTAL	3,087.7691
	TOTAL CLAIMS EL CRESTON PROJECT	14,451.3641

Starcore International Mines Ltd.

MD&A

July 31, 2021

Page 5

In addition to the new claims staked, the Company is working on a new geological model of the El Creston deposit, with the primary purpose of assessing the potential for a copper porphyry orebody at depth.

Readers are encouraged to visit our website at www.starcore.com for location photos, diagrams and plans of the geologic models and targets.

Starcore plans to continue exploration work on the newly acquired precious metals claims in addition to further defining the potential of the El Creston deposit. For future clarifications, the Company will define both claims as the Opodepe Project.

Qualified Person

Salvador Garcia, B. Eng., a director of the Company and Chief Operating Officer, is the Company's qualified person on the project as required under NI 43-101and has prepared the technical information contained in this press release.

3. Selected Annual Information

The highlights of financial data for the Company for the three most recently completed financial years are as follows:

			Twelve months		Twelve months	Twelve months
			ended		ended		ended
			April 30, 2021		April 30, 2020	April 30, 2019
Revenues		$	26,799	$	24,820	$	32,795
Cost of Sales		(20,397)		(22,836)		(32,759)
Earnings from mining operations		6,402		1,984		36
Administrative Expenses		(3,843)		(4,396)		(4,284)
Loss on Toiyabe		(1,116)		-		-
Allowance for receivables		-		-		(441)
Impairment of Mining Interest, plant and equipment		-		-		(4,804)
Loss on disposal of E&E asset		-		-		(82)
Write off Altiplano		-		(39)		-
Income tax (expense)/ recovery		1,449		(1,178)		(2,229)
Total income/ (loss)	$	2,892
(i)	Total income/ (loss)	$	(3,629)	$	(11,804)
(ii) Income/ (loss) per share - basic	$	0.06	$	(0.07)	$	(0.24)
(iii)	Income/ (loss) per share - diluted	$	0.06	$	(0.07)	$	(0.24)
Total assets	$	46,471	$	54,413	$	57,005
Total long-term liabilities	$	7,531	$	10,855	$	13,063

4. Results of Operations

Discussion of Acquisitions, Operations and Financial Condition

The following should be read in conjunction with the consolidated financial statements of the Company and notes attached thereto for the period ended July 31, 2021.