Titan Mining : Q3 2020 - Management Discussion and Analysis

TITAN MINING CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND NINE MONTHS ENDED September 30, 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 and nine months ended September 30, 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 November 16, 2020. All dollar amounts reported herein are in US dollars unless otherwise indicated.

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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 ..................................................................................................................................................................................	4
EXPLORATION UPDATE...............................................................................................................................................................................	6
FINANCIAL REVIEW ......................................................................................................................................................................................	9
LIQUIDITY AND CAPITAL RESOURCES ...............................................................................................................................................	11
RELATED PARTY TRANSACTIONS........................................................................................................................................................	14
ACCOUNTING CHANGES AND CRITICAL ESTIMATES ..................................................................................................................	16
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING.........	17
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING......................................................................................	17
NOTES TO READER ......................................................................................................................................................................................	17

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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 continues to maintain its unpatented mining claims in New Mexico, USA and entered into an option agreement on the Mineral Ridge Property in Nevada, USA. The property is a fully permitted mine and mill operation comprised of approximately 14,000 acres of patented, fee-owned, and unpatented mining claims which include certain water rights.

FINANCIAL AND OPERATIONAL SUMMARY

			Three months ended			Nine months ended
				September 30,				September 30,
Financial Performance		2020		2019	Change		2020		2019	Change
Loss for the period	$	1,458	$	1,597	$		(139)	$ 12,775	$	8,096	$	4,679
Operating cash outflow (inflow) before	$	(1,434)	$	556	$ (1,990)	$	1,878	$	3,305	$	1,427
changes in non-cash working capital
Financial Condition			September 30, 2020			December 31, 2019
Cash and cash equivalents					$	7,018				$		1,709
Working capital (negative)					$(27,522)				$ (21,225)
Total assets					$ 78,625				$		78,500
Equity					$ 19,535				$		25,190
			Three months ended			Nine months ended
				September 30,				September 30,
Operating Data		2020		2019	Change		2020		2019	Change
Payable zinc produced (mlbs)		11.0		8.5			2.5		32.3		21.3		11.0
Payable zinc sold (mlbs)		11.2		8.3			2.9		33.3		22.3		11.0
Average provisional zinc price (per lb)		$ 1.06	$	1.06		$	-	$	0.97	$	1.16	$	(0.19)

HIGHLIGHTS

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

• ESM worked 73 Lost Time Injury (LTI) free days until September 3, 2020. ESM worked 27 LTI free days (20,588 hours) in the quarter following the incident.
• The Company generated operating cash inflow before changes in non-cash working capital of $1,434

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TITAN MINING CORPORATION

Management's Discussion and Analysis

(In thousands of US Dollars, unless otherwise indicated)

• Tons milled increased 10% compared to the prior quarter as the mine continues to ramp up production.
• Milled grade was lower than the prior quarter due to lower grades in select headings in New Fold and Mud Pond Main.
• Precautionary adjustments to employee schedules and work locations relating to the COVID-19 pandemic made during the first quarter of 2020 continued throughout the third quarter of 2020.
• Development of the #2D zone was suspended in the first quarter of 2020 as a result of lower zinc prices in favour of higher-grade opportunities elsewhere in the mine. Production blasting of the first longhole stope in this zone was completed in the third quarter of 2020.
• The upper level of the New Fold zone proved to be longer in strike length and higher in grade than expected leading to additional ore development. The first longhole stope from this zone was blasted in the third quarter of 2020 and extraction will continue into the fourth quarter of 2020. Two levels are fully developed in this zone with a third currently in development. A fourth level will be in development by the end of the year.
• On August 31, 2020, the Company announced the signing of an Option Agreement on the Mineral Ridge Property located in Esmeralda County, Nevada from Scorpio Gold Corporation.
• On September 24, 2020, the Company closed a non-brokered private placement financing raising gross proceeds of C$8,003,800 million.

OPERATIONS REVIEW

					2020									2019
			Q3		Q2		Q1				FY(1)		Q4		Q3		Q2		Q1
Production
Ore mined	tons	87,422	77,164	71,841	218,875	63,738	62,672	46,163	46,302
Ore milled	tons	87,657	79,409	70,076	218,823	63,253	63,387	46,518	45,665
Feed grade	zn %		7.7		8.7		8.8				8.3		8.1		8.2		8.4		8.6
Recovery	%		96.5		96.6		96.7				96.4		96.7		96.2		96.5		96.2
Payable zinc (2)	mlbs		11.2		11.4		10.2				29.7		8.4		8.5		6.4		6.4
Concentrate grade	zn %		58.9		59.8		59.6				58.7		58.3		59.2		58.0		59.4
Zinc concentrate
produced	tons	11,045	11,162	10,051			29,808		8,514		8,454		6,478	6,362
Sales
Payable zinc	mlbs		11.2		11.7		10.4				30.1		7.8		8.3		6.7		7.3
Average
provisional zinc
price	$/lb	$	1.06	$	0.89	$	0.96	$	1.15	$	1.08	$	1.06	$	1.26	$	1.22
C1 cash cost per
payable zinc	$/lb	$	0.93	$	0.92	$	0.95			$	-	$	-	$	-	$	-	$	-
pound sold(2)

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 19 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. Although restrictions in New York State have been relaxed through various reopening phases, ESM continues to reduce employee exposure to COVID-19 through social distancing, thermal scanning of all employees and visitors, 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 modified work schedules to reduce the number of personnel on site

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