Wolf Acquisition : MD&A for the months ended June 30 2022, and 2021

HERCULES SILVER CORP. (FORMERLY, BALD EAGLE GOLD CORP.)

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED JUNE 30, 2022, AND 2021

Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Management's Discussion and Analysis

For the six months ended June 30, 2022

The information contained in this management's discussion and analysis ("MD&A") of the results of the operations and financial position of Hercules Silver Corp. (the "Company") and its wholly owned subsidiaries (the "Subsidiaries") for the six months ended June 30, 2022, and 2021. The Subsidiaries consist of BE Gold Inc. (Canada), Fontera Gold Nevada Inc. (Nevada), 1218530 B.C. Ltd. (British Columbia), Anglo Bomarc, U.S., Inc. (Idaho), Frontier Metals Canada Holdings Corp. (British Columbia) and Frontier Metals LLC (Idaho). This MD&A should be read in conjunction with the Company's unaudited interim consolidated financial statements and notes thereto for the six months ended June 30, 2022 (the "Interim Condensed Consolidated Financial Statements"). The Interim Condensed Consolidated Financial Statements include the accounts of the Company and the Subsidiaries, and all inter-company balances and transactions have been eliminated on consolidation. For the avoidance of doubt, any reference to the Company in this MD&A fully incorporates and includes any subsidiary of the Company and/or any other future subsidiary of the Company.

This MD&A was approved by the board of directors of the Company (the "Board") on August 28, 2022.

The referenced financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board. Unless otherwise stated, all figures contained in this MD&A are presented in Canadian dollars.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this MD&A may constitute forward-looking statements. These statements relate to future events or the Company's future performance. All statements, other than statements of historical fact, may be forward-looking statements.

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-lookingstatements"). These statements relate to future events or the Company's future performance. Wherever possible, words such as "may", "would", "could", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties, and assumptions. Many factors could cause the actual results, performance, or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, those listed in the "Risk Factors" section of this MD&A. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this MD&A. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this MD&A are based upon what the Company management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. The forward-looking statements contained in this MD&A have been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including without limitation, those mentioned in the Company's Filing Statement dated March 5, 2021 (the "Filing Statement"). The Company assumes no responsibility to update forward looking statements, other than as may be required by applicable securities laws. The factors identified above are not intended to represent a complete list of the factors that could affect the Company.

Overview

Description of the Business

The Company is engaged in the acquisition, exploration, and development of resource properties. The Company's principal asset is a 100% interest in the Hercules Silver Property (the "Hercules Property"), located in Washington County, Idaho, USA. On November 29, 2021, the Company acquired a 100% interest in the Leviathan Property (the "Leviathan Property"), immediately adjacent to the Hercules Property.

The Company is incorporated under the Business Corporations Act (Ontario) with its registered office located at 1 First

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Management's Discussion and Analysis

For the six months ended June 30, 2022

Canadian Place, 100 King Street West, Suite 1600, Toronto, ON, M5X 1G5.

The Company was incorporated on January 25, 2018, as 2617283 Ontario Corp., and was renamed as Wolf Acquisition Corp ("Wolf") on February 23, 2018. On March 19, 2021, the Company completed its qualifying transaction as defined by Policy 2.4 of the TSX Venture Exchange (the "TSXV"), with CX One Inc. ("CX One") and Frontera Gold Inc. ("Frontera") and changed its name from Wolf Acquisition Corp. to Bald Eagle Gold Corp (the "Qualifying Transaction"). The Company amalgamated Frontera and CX One with its wholly owned subsidiary 12590425 Canada Inc. forming a new subsidiary, BE Gold Inc. On August 18, 2022 the Company changed its name to Hercules Silver Corp.

The Company's common shares (the "Common Shares") are listed on the TSXV under the symbol "BIG" and on the OTCQB® Venture Market under the symbol "BADEF".

Corporate Developments

On January 25, 2022, the Company appointed Mr. Christopher Paul as Chief Executive Officer and as a director. Mr. Paul is a geologist with over 15 years of discovery and capital markets experience, in numerous senior exploration management roles. He is Principal and Founder at Ridgeline Exploration, which was acquired by Goldspot Discoveries in 2021. Mr. Paul has also been fundamental in significant copper and gold discoveries for Golden Ridge Resources Ltd. and Damara Gold Corp. He holds a B.Sc. in Geology from Simon Fraser University and Diploma in Mining from the British Columbia Institute of Technology.

On January 25, 2022, the Company also appointed Mr. Antoine Soucy-Fradette as Vice President of Exploration. Mr. Soucy- Fradette holds a B. Eng. in Geological Engineering from Laval University and brings strong precious metals experience to the Company, with previous success ranging from greenfield to brownfield exploration projects throughout Quebec, Ontario, the Yukon Territories and British Columbia.

On April 19, 2022, the Company appointed Dr. Tom Henricksen, Ph.D. to its board of advisors. Dr. Henricksen is an exploration geologist with five decades of field experience and was the 2018 recipient of the Association for Mineral Exploration of British Columbia's Colin Spence Award for Excellence in Global Mineral Exploration. Dr. Henricksen received this prestigious award in recognition of his outstanding contributions to mineral exploration, and for his involvement in a multitude of significant global discoveries over the course of his career. Dr. Henricksen holds a B.Sc. in Geology from the University of Wisconsin, and a Ph.D. in Economic Geology from Oregon State University.

On May 16, 2022, the Company appointed Mr. Luis da Silva as a director and as Chairman of the Board. Mr. da Silva is an experienced metals and mining executive and director having served as chief executive officer of listed companies and at a senior level in several multinational companies. Mr. da Silva has a proven track record in value creation for shareholders by forging relationships and managing complex entities with large international joint venture partners. Mr. da Silva is a graduate Mining Engineer from the Camborne School of Mines and received his M.B.A. from the Cranfield School of Management.

On May 31, 2022, the Company completed a non-brokered private placement 30,666,666 units of the Company (each a "Unit") at a price of $0.075 per Unit for aggregate gross proceeds of approximately $2,300,000 (the "Offering"). Each Unit consisted of one (1) Common Share and one (1) Common Share purchase warrant (each, a "Warrant"). Each Warrant is exercisable to purchase one additional Common Share at an exercise price of $0.11 until May 31, 2024. Crescat Portfolio Management LLC ("Crescat") and certain accounts managed by Crescat participated in the Offering and collectively made a strategic investment of approximately $1,100,000. The Company granted Crescat a right to participate in future financings of the Company so as to allow Crescat to maintain its current equity stake on a pro rata basis, subject to certain terms and conditions. All securities issued under the Offering are be subject to a four month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

Subsequent Events

On July 15, 2022, the shareholders of the Company approved an omnibus incentive plan (the "Omnibus Incentive Plan") providing for up to 20% of the Company's Common Shares (being 29,341,745 Common Shares, less Common Shares

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Management's Discussion and Analysis

For the six months ended June 30, 2022

previously outstanding under the Stock Option Pan (as defined herein) and the RSU Plan (as defined herein)) to be issued as restricted share units ("RSUs") or incentive stock Options ("Options") to qualified directors, officers, employees and consultants of the Company ("Eligible Participants").

On July 29, 2022, Raymond Harari resigned as President and as a director of the Company.

On August 18, 2022, the Company filed articles of amendment to change its name from Bald Eagle Gold Corp. to Hercules Silver Corp. (the "Name Change"). The Name Change was approved by shareholders of the Company on July 15, 2022 to reflect the recent changes in the Company's business and exploration activities.

Mineral Properties

Hercules Property

The Hercules Property represents 4,246 acres consisting of one patented lode claim, 158 unpatented lode claims and approximately 1,165 acres of mineral rights owned in fee with attendant access, exploration, drilling mining and milling rights to 1,770 acres of surface. The Company has a 100% interest in the Hercules Property, subject to a 2% net smelter royalty. The Hercules Property is located on the northwestern shoulder of Cuddy Mountain, 200 kilometers northwest of Boise, Idaho. Cuddy Mountain is an uplifted and tilted fault block of accreted Mesozoic terrane about 19 kilometers across, which is characterized by open grassy slopes. Mineralization is hosted within a Triassic-Jurassic sequence of volcanics, volcaniclastics and carbonate rocks.

Highlights of the Hercules Property include:

• Drill ready project with 6 target zones spanning 5.5 kilometers of geology favourable for shallow high-grade silver mineralization. Company plans to drill the project in 2022.
• Over 300 historical drill holes spanning 3.5 kilometers was input into a six-dimensional model, which was utilized to identify priority targets. Geological mapping, IP geophysics and sampling further refined drill targets. Historical drill intercepts and related disclaimers can be accessed from the Company's corporate presentation at www.herculessilver.com.
• Historical drill-defined mineralization is open in multiple directions including at depth. Recent soil sampling programs by the company have identified potential extensions and new zones of mineralization.
• Located in Idaho, a stable and mining friendly jurisdiction. A 1969 agreement with the original landowner grants the company the right to drill, mine and mill on surface land covering approximately half of the project area.

Technical Developments

On February 10, 2022, the Company filed a technical report, titled "Technical Report for the Hercules Silver Project, Washington County, Idaho, USA" (the "Technical Report"). The Technical Report was independently prepared for the Company by Mr. Donald E. Cameron, P.Geo, LG, SME-RM of Cameron Resource Consulting, LLC, an independent and "Qualified Person" under National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The Technical Report is dated February 9, 2022, with an effective date of November 15, 2021.

On February 28, 2022, the Company completed an extensive historical data compilation for Hercules, which comprised data relating to IP geophysics, soil geochemistry, geological mapping, and over 300 historical holes drilled from the period 1965 to 1988. The data was scanned from physical drill logs, maps and reports which were held in storage for over 30 years.

On March 9, 2022, the Company and Goldspot Discoveries Corp. completed a six-dimensional ("3D") geological model for Hercules. The model incorporates the recently digitized historical exploration and drilling data. The results of the model enable the Company to visualize the geometry of the mineralization in 3D and assists with guiding the Company's exploration drilling plans. 3D geological modelling was not historically completed by past operators.

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Management's Discussion and Analysis

For the six months ended June 30, 2022

Leviathan Property

The Leviathan Property claims are located immediately adjacent to the Hercules Property in the Heath Mining District of Washington County, Idaho, USA. The acquisition of the Leviathan Property is considered by the Company to be an expansion of the Hercules Property. The Leviathan Property claims are located immediately east of and adjoining to the existing Hercules Property mineral rights. Historical surface sampling on the Leviathan Property claims indicates that the silver (+/- lead-zinc) mineralization at Hercules Property extends onto the northern portion of the Leviathan Property, which provides the Company with additional targets to increase the overall strike length of the mineralized system. Significant copper mineralization is also present within the volcanic rocks at surface on the south side of the Leviathan Property, suggesting a potential porphyry copper system may be present at depth.

Numerous quartz porphyry plugs, believed to be Cretaceous in age, intrude the volcanic sequence in the southern half of Leviathan. A large intrusive complex associated with copper porphyry style mineralization occurs on the adjacent IXL prospect to the southeast. The intrusive complex present at the IXL prospect is interpreted to be genetically related to similar intrusive rocks on the Leviathan.

On June 12, 2022, the Company completed its interpretation of 2021 soil sampling data, and reported a new 2-kilometer diameter copper soil anomaly, immediately adjacent to the CRD-stylesilver-lead-zinc mineralization on the Hercules Property. The size and grade of the newly discovered anomaly, which remains open under cover to the south, is consistent with a significant porphyry copper system that may have been a feeder system to the adjacent silver-rich CRD mineralization. Select rock grab samples returned values of up to 8.2% copper, 0.5 g/t gold and 246 g/t silver.

Technical Developments

The Company is further evaluating and sampling the Leviathan Property claims.

Discussion of Operations

Six months ended June 30, 2022, and 2021

			2022		2021
Acquisition of exploration		$	-	$	4,703,690
properties
Exploration and evaluation			159,904
expenditures				303,250
General and administrative			517,121		821,193
Professional fees			132,765		316,335
Stock based compensation			217,600		-
Listing expense			208,271		958,959
Foreign exchange			23,104		-
Interest income			(205)		(331)
Income (Loss) and		$	1,258,659	$	7,103,096
comprehensive loss

The Company has yet to generate any revenues. The Company recorded a loss of $1,258,659 for the period ended June 30, 2022, compared to $7,103.096 for the period ended June 30, 2021. The decrease in the loss is primarily due to the completion of the Qualifying Transaction, as well as additional professional fees incurred to affect the Qualifying Transaction, along with consulting fees, filing fees, required to engage in exploration and evaluation in year 2021.

Given nature of the company's exploration activities, it will not achieve profitability for the foreseeable future. The company intends to use proceeds from equity financing to achieve its business objectives.

The following provides a breakdown of the general and administrative expenses for the period ended June 30, 2022, and 2021:

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