Titan Mining : Q1 2020 - Management Discussion and Analysis

TITAN MINING CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED MARCH 31, 2020

TITAN MINING CORPORATION

Management's Discussion and Analysis

This Management's Discussion and Analysis ("MD&A") is intended to help the reader understand Titan Mining Corporation ("Titan", "we", "our" or the "Company"), our operations, financial performance, and current and future business environment. This MD&A is intended to supplement and complement our unaudited consolidated financial statements for the three months ended March 31, 2020, prepared in accordance with International Financial Reporting Standards ("IFRS").

Readers should be aware that: this MD&A contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") that are subject to risk factors set out in a cautionary note contained in our MD&A; and the technical and scientific information in this MD&A has been approved by a Qualified Person based on a variety of assumptions and estimates. For a discussion on each of these matters, refer to the "Notes to Reader" section of this MD&A.

Additional information regarding Titan, including the risks related to our business and those that are reasonably likely to affect our financial statements in the future, is contained in our continuous disclosure materials, including our most recent Annual Information Form ("AIF"), consolidated financial statements and Management Information Circular, which are available on the Company's website at www.titanminingcorp.comand under the Company's profile on the SEDAR website at www.sedar.com.

This MD&A is prepared as of May 15, 2020. All dollar amounts reported herein are in US dollars unless otherwise indicated.

Page 2

TITAN MINING CORPORATION
Management's Discussion and Analysis
(In thousands of US Dollars, unless otherwise indicated)
TABLE OF CONTENTS	Page
OUR BUSINESS..................................................................................................................................................................................................	4
FINANCIAL AND OPERATIONAL SUMMARY ......................................................................................................................................	4
HIGHLIGHTS......................................................................................................................................................................................................	4
OPERATIONS REVIEW ..................................................................................................................................................................................	5
EXPLORATION UPDATE...............................................................................................................................................................................	6
FINANCIAL REVIEW ......................................................................................................................................................................................	8
LIQUIDITY AND CAPITAL RESOURCES ...............................................................................................................................................	11
RELATED PARTY TRANSACTIONS........................................................................................................................................................	14
ACCOUNTING CHANGES AND CRITICAL ESTIMATES ..................................................................................................................	15
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING.........	16
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING......................................................................................	16
NOTES TO READER ......................................................................................................................................................................................	16

Page 3

TITAN MINING CORPORATION

Management's Discussion and Analysis

(In thousands of US Dollars, unless otherwise indicated)

OUR BUSINESS

Titan Mining Corporation is a natural resource company engaged in the acquisition, exploration, development and production of mineral properties. Our corporate office is in Vancouver, British Columbia, and our shares are listed on the Toronto Stock Exchange and trade under the symbol "TI".

The Company's principal asset is a group of 100%-owned,high-grade zinc mines, the Empire State Mine ("ESM"), located in the Balmat-Edwards mining district in northern New York State, near Gouverneur and 35 miles south of the Port of Ogdensburg. These past-producing operations (the Empire State Mine's #2, #3, #4, Hyatt, Pierrepont and Edwards mines) were acquired on December 30, 2016, and had been on care and maintenance since 2008. Following the completion of Titan's initial public offering ("IPO") on October 19, 2017, the mine entered the development stage. Titan also has a base metals exploration program on its unpatented mining claims in New Mexico, USA.

FINANCIAL AND OPERATIONAL SUMMARY

		Three months ended March 31,
Financial Performance		2020	2019	Change
Loss for the period		$8,365	$1,089	$7,276
Operating cash flow before changes
in non-cash working capital		($2,447)	($83) ($2,364)
Financial Condition	March 31, 2020	December 31, 2019
Cash and cash equivalents	$	536	$	1,709
Working capital (negative)	$	(24,616)	$	(21,225)
Total assets	$	76,787	$	78,500
Equity	$	19,773	$	25,190
		Three months ended March 31,
Operating Data		2020	2019	Change
Payable zinc produced (million lbs)		10.2	6.4	3.8
Payable zinc sold (million lbs)		10.4	7.3	3.1
Average provisional zinc price (per lb)		$0.97	$1.22	($0.25)

HIGHLIGHTS

Significant events and operating highlights for the first quarter 2020 and up to the date of this MD&A include the following:

• ESM worked 148 days without a lost time incident surpassing 104,000 man-hours.
• Tons milled increased 11% compared to the prior quarter as the mine continues to ramp up production. Precautionary adjustments to employee schedules and work locations relating to the COVID-19 pandemic were made during the first quarter of 2020. The pandemic also had a significant impact on zinc prices.
• Development of the #2D zone has been suspended in favour of higher-grade opportunities elsewhere in the mine due to lower zinc prices. Production drilling of the first longhole stope in this zone continued as a secondary priority. The first production blast is expected in the second quarter of 2020.

Page 4

TITAN MINING CORPORATION

Management's Discussion and Analysis

(In thousands of US Dollars, unless otherwise indicated)

• The upper level of the New Fold zone has proven to be longer in strike length and higher in grade than expected leading to additional ore development from this zone. First longhole production is scheduled for the second quarter of 2020.
• Exploration drilling at near-mine surface targets Hoist House, Turnpike and Pumphouse was completed during the quarter which highlights the potential of open pit mining to feed to the under-utilized mill at ESM. Geotechnical drilling to support the open pit mine design work was completed. Metallurgical test work for these zones is in process. All other work related to the updated mine plan was suspended in an effort to preserve cash during the COVID-19 related zinc price downturn.
• The Company amended its credit agreement with a company controlled by Titan's Executive Chairman which increased the loan to a total of $20,710.
• Subsequent to March 31, 2020, ESM applied for and received relief funding under the United States Paycheck Protection Program. The funds from this program will be used to ensure ESM's workforce will remain intact during the COVID-19 related economic downturn.

OPERATIONS REVIEW

		2020				2019
		Q1		FY (1)	Q4	Q3	Q2	Q1
Production		71,841
Ore mined	tons	218,875	63,738	62,672	46,163	46,302
Ore milled	tons	70,076	218,823	63,253	63,387	46,518	45,665
Feed grade	zn %	8.8	8.3	8.1	8.2	8.4	8.6
Recovery	%	96.8	96.4	96.7	96.2	96.5	96.2
Payable zinc	mlbs	10.2	29.7	8.4	8.5	6.4	6.4
Concentrate grade	zn %	59.6	58.7	58.3	59.2	58.0	59.4
Zinc concentrate produced	tons	10,051	29,808	8,514	8,454	6,478	6,362
Sales		10.4
Payable zinc	mlbs	30.1	7.8	8.3	6.7	7.3
Average provisional zinc price	$/lb	0.97	$1.15	$1.08	$1.06	$1.26	$1.22
C1 cash cost per payable zinc			-	-	-	-	-
pound sold (2)	$/lb	$0.95

1. The full-year figure may not equal the sum of the quarters due to rounding.
2. C1 cash cost per payable pound sold is a non-GAAPmeasure-see page 18 of this MD&A for discussion of non-IFRS measures.

ESM continues to operate underground on a 5 day per week, two shift per day basis while surface operations continue on a 5 day per week, one shift per day basis following the February 2019 workforce reduction.

In March, 2020, New York State Governor Cuomo issued Executive Orders requiring on site business premises workforce reductions followed by business closures for non-essential businesses. ESM took steps to reduce employee exposure to COVID-19 including, social distancing, cancellation of travel, limiting non-essential visitors and vendors, administrative staff working from home, limiting the number of personnel in meetings and shaft cages, and rearranging staff schedules such that no more than 50% of the workforce is on site at any one time.

Capital projects including engineering for the life of mine update and potential open pit projects have been suspended during the COVID-19 related zinc price downturn.

The operation continues to identify incremental efficiency improvements which have resulted in an increase in production to an average of 1,095 tons milled per operating day during the first quarter of 2020.

Mining efforts are focused on the higher-grade New Fold, Mud Pond, and Mud Pond Apron zones while development of the #2D zone has been temporarily suspended pending higher zinc prices. In addition to ore development, ESM continues to develop to lower levels of New Fold to support future production. Production

Page 5