Discovery Silver Corp. entered into an agreement with a syndicate of financial institutions for a revolving credit facility that allows the Company to borrow up to US$250 million, with an accordion feature for an additional US$100 million subject to receipt of additional lender commitments and satisfaction of certain other conditions. The Syndicate includes Bank of Montreal (“BMO”), acting as administrative agent and lender, BMO Capital Markets, acting as sole bookrunner and co-lead arranger, and Canadian Imperial Bank of Commerce (“CIBC”) and National Bank of Canada (“NBC”) acting as co-lead arrangers, co-syndication agents and lenders.

Tony Makuch, Discovery’s CEO, commented: “The Revolving Credit Facility we have arranged with the Syndicate will provide both increased financial capacity and greater flexibility as we advance our attractive growth profile in both Canada and Mexico. We appreciate the support BMO, CIBC and NBC have demonstrated in entering into the Agreement with Discovery and look forward to working with them as we continue to build the value of our company.”

The Facility will mature on September 15, 2028, and is available for general corporate and working capital purposes, including financing future investments as the Company advances its growth strategy. The Facility includes terms and conditions customary for a transaction of this nature, and is secured by all assets of the Company and its material subsidiaries. Advances under the Facility are subject to the satisfaction of certain customary conditions precedent.

The Facility is available by way of (i) term Secured Overnight Financing Rate (“Term SOFR”) loans, with interest accruing at Term SOFR plus a credit spread adjustment of 0.10% per annum plus an applicable margin ranging from 2.50% to 3.50% per annum based on the Company’s consolidated net leverage ratio at the end of each fiscal quarter, (ii) US dollar base rate loans, with interest accruing at BMO’s US dollar base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, based on the Company’s consolidated net leverage ratio at the end of each fiscal quarter and (iii) letters of credit. The undrawn portion of the Facility is subject to a standby fee ranging from 0.563% to 0.788% per annum, based on the Company’s consolidated net leverage ratio at the end of each fiscal quarter.

Following the entering into of the Agreement, Discovery will terminate the existing term loan agreement with Franco-Nevada GLW Holdings Corp. involving a US$100 million senior debt facility, entered into as of April 15, 2025, which remained undrawn as of the date of termination.