Work Plan

Ongoing field exploration programs are being conducted throughout the three project areas and include property-scale geological mapping and surface trace element geochemistry, relogging and additional analyses of existing drill core, and constructing 3D Leapfrog geologic and mineralization control models.The exploration and technical teams are improving drill targeting through mineral system understandings to define geologic and mineralization controls of the Veta Grande mineral system.

Defiance initiated an oriented core drilling beginning in December 2020. Since 2020, the company has drilled a total of additional diamond drill 41 holes (16,390.5m) at San Acacio.Targets have included blind and structural off-set zones for both resource development and exploration drilling in and around the Veta Grande vein, as well as maiden drilling on the Palenque structure at Lucita. The company has completed a first pass of 13 holes (3,801.8m) of diamond drilling on the Palenque area of the Lucita project. The Las Majadas zone on the Lagartos land package is an attractive target and will be the focus of future explorationprograms.

Planned 2024 drilling at the Zacatecas project includes programs for resource development, (including metallurgical testing), brownfields exploration, and greenfields exploration, including:

• Resource development drilling that will be focused in the area of previous resource estimates, designed to delineate tonnage of mineralization outside of the other, pre-2014, resource estimates.

• Brownfields exploration designed to test newly recognized hanging wall and footwall vein splays, offset structures at depth, and additional targets in close proximity to the historical workings.

• Greenfields exploration that will be a combination of follow up drilling on the recent first-pass success at Palenque and first-pass drilling on regional targets including the northern Zacatecas district at Pánuco.

A component of the planned drill program will also include metallurgical drilling for a planned resource estimate.

Defiance also plans on following up the new discovery made at Lucita on the Palenque vein system.Maiden drilling conducted by Defiance in 2022 encountered several styles of high-grade silver mineralization, including the classic vein-hosted style and blind, newly-discovered contact-style mineralization at depth. The encountered mineralization is open along strike and both up and down dip from the released results, which are highly-encouraging and warrant follow up drilling.