Silvercrest completes 54% of Chispas construction in Q3

Mr. Eric Fier reports

SILVERCREST LAS CHISPAS PROJECT CONSTRUCTION REMAINS ON SCHEDULE AND BUDGET

Silvercrest Metals Inc. has provided an update on construction activities at the company's Las Chispas project, located in Sonora, Mexico. All currency amounts herein are presented in United States Dollars, unless otherwise stated.

Highlights

Construction Remains on Schedule {ౢ –} At the end of the third quarter of 2021 ("Q3, 2021"), overall construction progress at Las Chispas was 54% complete compared to an overall scheduled completion of 48%. Construction continued to progress well in the quarter with the main access road, plant detailed engineering, and concrete work now complete, bridge construction 88% complete, plant construction 49% complete, powerline 47% complete, and underground infrastructure ongoing. Construction progress continued to benefit from no delays due to COVID-19 or any other reason.

Capital Spend Tracking Well Against Budget {຾ –} Through Q3, 2021, 68% of the $137.7 million Feasibility Study* capital cost estimate was committed, of which 57% has been incurred across all capital cost scopes, in-line with budget. At the end of Q3, 2021, approximately $59.0 million in capital remains to be incurred through commissioning. A number of key infrastructure tasks are now complete or nearing completion, limiting cost inflation risk.

Underground Development Ahead of Schedule{თ –} With underground development ahead of schedule at the end of H1, 2021, development rates continued to progress well in Q3, 2021 for a total of 15.7 km completed since underground development began in Q1, 2019. Unit underground mining costs continue to track slightly under budget and development metres remain well ahead (1.6 km) of the Feasibility Study budget, year to date.

Site Safety Remains Key Priority {ኊ –} At the end of Q3, 2021, after 1.33 million work-hours completed at site, the Company's lost time injury ("LTI") frequency rate was 0.60. COVID-19 risk mitigation efforts continued successfully in the quarter with an additional 4,800 COVID-19 tests completed and positivity rates remaining low. The Company also participated in a local vaccination program to complement the federal program. This local program allowed for full vaccination of 220 employees and contractors and first dose vaccination of an additional 110 employees and contractors.

Funded for Construction, Near-Term Cash Flow {ᓲ –} As at September 30, 2021, SilverCrest had cash and cash equivalents of $199.0 million and $60.0 million remaining under a $120.0 million project financing facility (the "Credit Facility"). Once fully operational and using Base Case metal prices ($1,500/oz Au and $19.00/oz Ag), which are approximately 17% and 22% (respectively) below current prices, the Feasibility Study estimated after-tax project free cash flow of approximately $160.0 million in 2023 and an estimated average of $110.0 million per year from 2023 to 2029. With more than 80% of the initial capital costs expected to be committed by the end of 2021, SilverCrest expects to be well funded for commissioning and ramp-up in 2022, while still retaining the flexibility to pursue continued exploration, further optimization work and growth opportunities.

* NI 43-101 Technical Report & Feasibility Study on The Las Chispas Project dated January 4, 2021 ("Feasibility Study")

Pierre Beaudoin, COO, remarked, "Our team and contractors, fueled by their success to date, continue to make steady progress in safely advancing the construction of the Las Chispas Project. As the Project passes its halfway mark of the construction timeline and capital spend, construction will get into its peak period, and we are increasing our focus on the operational readiness plan in preparation for plant commissioning (expected in Q2, 2022) and production ramp-up through H2, 2022. In parallel, our focus on risk mitigation will continue and include the continued build of the on-surface stockpile and the advancement of underground development. The construction team continues to target reaching approximately 80% completion of overall construction progress by the end of 2021, with plant ore commissioning expected as planned in Q2, 2022".

N. Eric Fier, CPG, P.Eng, and CEO, stated, "The outstanding efforts from our team and contractors in Mexico and Canada continued in Q3, 2021 with notable progress being made on a number of key areas of the Project including the process plant, the access road, powerline, and the bridge. Las Chispas Project construction remains on time and budget and our strong working capital position allows us to progress our growth and optimization plans while de-risking in parallel".

Las Chispas Construction

The Company estimates that the initial capital cost (estimated at $137.7 million) and construction schedule (from January 1, 2021 to end of construction period projected to be in Q2, 2022) outlined in the Feasibility Study remains valid. Construction of the plant and surface infrastructure is tracking on schedule and budget. At the end of Q3, 2021, overall construction was 54% complete compared to scheduled completion of 48%. Construction progress has benefited from no delays due to COVID-19 or any other reason.

At the end of Q3, 2021 more than $93.7 million (or 68% of the total capital cost estimate) was committed, of which an estimated $79.0 million (or 57% of the total capital cost estimate) has been incurred on construction across all capital cost scopes (process plant, underground development and infrastructure, surface infrastructure, and owner's costs).

Construction has continued to progress well with detailed engineering, earthworks, road construction, and concrete 100% complete and, key infrastructure projects (powerline and bridge) well advanced. The Company's Q3, 2021 progress on its planned construction and development activities are as follows and shown in Figures 1-9 attached: