Titan Mining : Year-End 2020 - Management Discussion and Analysis

TITAN MINING CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 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 audited consolidated financial statements for the year ended December 31, 2020, prepared in accordance with International Financial Reporting Standards ("IFRS").

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 March 23, 2021. 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 ......................................................................................................................................	5
HIGHLIGHTS......................................................................................................................................................................................................	5
OPERATIONS REVIEW ..................................................................................................................................................................................	5
EXPLORATION UPDATE...............................................................................................................................................................................	7
FINANCIAL REVIEW ....................................................................................................................................................................................	10
LIQUIDITY AND CAPITAL RESOURCES ...............................................................................................................................................	12
RELATED PARTY TRANSACTIONS........................................................................................................................................................	16
ACCOUNTING CHANGES AND CRITICAL ESTIMATES ..................................................................................................................	18
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING.........	19
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING......................................................................................	19
NOTES TO READER ......................................................................................................................................................................................	19

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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 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), collectively the "Empire State Mine" or ("ESM"), were acquired on December 30, 2016, and had been on care and maintenance since 2008. Titan declared commercial production at ESM on January 1, 2020. On August 31, 2020 Titan entered into an option agreement on the Mineral Ridge Property in Nevada, USA. The Mineral Ridge 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. Titan also continues to maintain its unpatented mining claims in New Mexico, USA.

STRATEGY AND OUTLOOK

Titan's mission is to deliver extraordinary shareholder value through exploration, development and operational excellence.

Titan believes that the district surrounding ESM remains underexplored despite the long operating history of ESM. The Company is focused on discovering and developing additional high-grade,low-cost mineral resources to feed the mill at ESM. ESM's #4 mine is connected to its #2 mine, and there is potential for significant resource expansion which is expected to support production growth. Other historic mines and new targets within the district will be a focus for Titan's exploration team.

Mining and milling activities at ESM continued to ramp-up during the past year with commercial production having been declared on January 1, 2020. Increased productivities and improved operating costs are expected to continue into 2021 and have better positioned the mine for future success. The completion of the revised mine plan, incorporating the higher-grade New Fold zone in the #4 mine and near-mine Hoist House, Turnpike and Pumphouse potential open pits in early 2021 will guide Titan's capital investment decisions for the underground and open pit projects at ESM.

Titan's plan for Mineral Ridge is to continue its exploration to an investment decision on the exercise of the Earn-in Option or Purchase Option (see "Exploration Update- Mineral Ridge" of this MD&A for further information). In addition, the Company continues to examine various financing options to bolster the Company's treasury.

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TITAN MINING CORPORATION

Management's Discussion and Analysis

(In thousands of US Dollars, unless otherwise indicated)

FINANCIAL AND OPERATIONAL SUMMARY

		Three months ended		Year ended December 31,
			December 31
Financial Performance		2020		2019	Change		2020	2019	Change
Loss for the period	$	893	$	2,790	$(1,897)	$ 13,668	$ 10,886	$	2,782
Operating cash inflow (outflow) before	$	1,644	$ (1,831)	$	3,575	$	(234)	$(5,136)	$	5,002
changes in non-cash working capital
Financial Condition			December 31, 2020			December 31, 2019
Cash and cash equivalents					$	7,502			$		1,709
Working capital (negative)					$ (3,168)			$ (21,225)
Total assets					$ 78,896			$		78,500
Equity					$ 17,641			$		25,190
			Three months ended		Year ended December 31,
				December 31,
Operating Data		2020		2019	Change		2020	2019	Change
Payable zinc produced (mlbs)		13.0		8.4		4.6		45.6	29.7		15.9
Payable zinc sold (mlbs)		12.2		7.8		4.4		45.5	30.1		15.4
Average provisional zinc price (per lb)	$	1.22	$	1.08	$	0.14	$	1.03	$ 1.15	$	(0.12)

HIGHLIGHTS

Significant events and operating highlights for the fourth quarter and year ended December 31, 2020 and up to the date of this MD&A include the following:

• ESM experienced three lost time injuries in 2020. The operation has worked 111,892 hours since the last lost time incident which occurred in the fourth quarter of 2020.
• The Company declared commercial production on January 1, 2020 and steadily ramped up production through the year generating operating cash inflow before changes in non-cash working capital in the fourth quarter of $1,600 with full year sales of 45.5 million pounds of zinc compared to 30.1 million pounds in 2019.
• Tons milled increased 48% compared to the prior year as ESM continues to ramp up production.
• Milled grade increased in the fourth quarter of 2020 as grades returned to plan in New Fold and Mud Pond Main and the resumption of mining in the higher-grade Upper Mahler zone, with grades improving 4% year on year.
• Precautionary adjustments to employee schedules and work locations relating to the COVID-19 pandemic made during the first quarter of 2020 continued throughout the year.
• The Company extended the maturity dates of the senior secured revolving credit facility with a limit of US$10,000 with the Bank of Nova Scotia from April 3, 2021 to April 3, 2022, and also extended the maturity date of the Company's second ranking secured credit facility of US$20,710 from November 30, 2021 to April 5, 2022.
• On August 31, 2020, the Company announced the signing of an Option Agreement on the Mineral Ridge Property located in Esmeralda County, Nevada with Scorpio Gold Corporation.
• On September 24, 2020, the Company closed a non-brokered private placement financing raising gross proceeds of $5,988 (C$8,004).

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