Gatos Silver : September 2023 Corporate Presentation

High Margin Silver Producer with Exciting Growth Potential

Corporate Presentation

September 2023

NYSE/TSX: GATO	|	g a t o s s i l v e r . c o m

Disclaimer

Cautionary Note Regarding Forward-Looking Statements

This presentation contains statements that constitute "forward looking information" and "forward-looking statements" within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this presentation, including statements regarding mineral resource and reserve estimates, potential cash flow and cash distributions, life of mine, NPV, all-in sustaining costs, cash costs, operating costs, economic analysis, CLG's annual production, cash flow forecasts, projected capital and operating costs, future mill throughput rates, timing of updated 2023 Technical Reports, potential conversion of inferred resources to indicated or measured, viability of potential modifications and projects to improve efficiency, expected mining methods, timing of proposed drilling and potential results from exploration including possible increases to the life of mine ("LOM"), are forward-looking statements. Forward-looking statements are based on management's beliefs, assumptions, current expectations about future events and on information currently available to management including without limitation assumptions about commodity prices, mining methodologies, the accuracy of Mineral Reserve and Resource estimates, operating and capital costs, plant throughput and processing recoveries, operating conditions, and including other assumptions set out herein and to be set out in the 2023 Technical Reports. Such statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements including without limitation, commodity prices, change in regulations, failure to retain or obtain permits and licenses, environmental risks, cost and timing of exploration, development and production, opposition to mining may arise, labour interruptions, other general risks associated with mining operations and such other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved, and as such, readers should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this press release.

Notice Regarding Mineral Disclosure

The mineral resource and reserve estimates and LOM plan presented are based on a variety of estimates and assumptions relating to, among other things, geological interpretation, statistical inferences, commodity prices, mining methodologies, operating and capital costs, plant throughput and processing recoveries and operating conditions. In particular, material assumptions and risks include those described in our press release dated September 6, 2023, including metal prices and exchange rates, as well as our ability to reduce operating costs, achieve ramp development rates and dewater the mine in a cost-effective manner. There can be no assurance that the assumptions will actualize or be correct, and changes to any of these assumptions or our inability to achieve these assumptions may result in actual results to deviate significantly from those in this presentation.

Inferred mineral resources are subject to uncertainty as to their existence and as to their economic and legal feasibility. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.

Qualified Persons

Scientific and technical disclosure in this presentation regarding the Cerro Los Gatos 2023 Mineral Resource was based upon information prepared by or under the supervision of Ronald Turner, MAusIMM(CP), an employee of Golder Associates S.A. Scientific and technical disclosure in this presentation regarding the 2023 Mineral Reserve, the 2023 LOM Plan and other economic analyses that will also be set out in the 2023 Technical Reports was based upon information prepared by or under the supervision of Stephan Blaho, P.Eng. an employee of WSP Canada Inc. Scientific and technical disclosure in this presentation regarding the metallurgical assumptions for the 2023 LOM Plan and other economic analyses that will also be set out in the 2023 Technical Reports was based upon information prepared by or under the supervision of Adam Johnston, FAusIMM(CP), Chief Metallurgist with Transmin Metallurgical Consultants (UK). Other scientific and technical disclosure in this presentation was approved by Anthony (Tony) Scott, P.Geo., Senior Vice President of Corporate Development and Technical Services of Gatos Silver. Each of Ronald Turner, MAusIMM(CP), Stephan Blaho, P.Eng., Adam Johnston, FAusIMM(CP), and Tony Scott, P.Geo. is a "Qualified Person," as defined in S-K 1300 and NI 43-101. Ronald Turner, MAusIMM(CP), Stephan Blaho, P.Eng. and Adam Johnston, FAusIMM(CP) are all independent of Gatos Silver and the Los Gatos Joint Venture.

Non-GAAP Financial Performance Measures

This presentation contains non-GAAP financial performance measures. See Appendix for more information on these non-GAAP financial performance measures and GAAP reconciliation.

All dollar amounts are expressed in, and references to "$" refer to, United States dollars unless otherwise noted.

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Gatos Silver, Inc.

A leading low-cost silver producer

• 70% owned Cerro Los Gatos (CLG) mine, a state-of-the-art underground operation
• • Mine life extended to end of 2030
  • +12 Moz AgEq(1) annual production at $14.30/AgEq oz AISC(2) over LOM
  • Majority of revenue from silver
• Strong balance sheet and liquidity
• • US$36M in cash, no debt
  • Strong margins at CLG supporting further cash generation potential
• Well positioned to realize district potential
• • Exploration and future development funded from operating cash flow

Los Gatos District

• Located in Chihuahua State, Mexico
• Cerro Los Gatos mine operating since 2019
• Over 103,000 hectares of contiguous mineral rights

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Strong Balance Sheet and Supportive Shareholder Base

Liquidity to pursue district growth

Debt free with strong cash balance

Capital Structure (as of June 30, 2023)(2)

GSI Liquidity Summary	At July 31, 2023
Cash and Cash Equivalents	$36.0 million
Debt	$0.0 million
Net Cash(1)	$36.0 million
Amount available under Credit Facility	$50 million

NYSE Share Price (as of September 8, 2023)

TSX Share Price (as of September 8, 2023)

Basic Shares Issued & Outstanding

Fully Diluted Shares

Market Capitalization

$5.04

C$6.89

1. million

1. million $349 million

Los Gatos JV Liquidity Summary	At July 31, 2023
Cash and Cash Equivalents	$30.1 million
Debt	$0.0 million
Net Cash(1)	$30.1 million

Ownership Summary(3,4)

Other Insiders

0%

Retail &

Unidentified Electrum

18% Group

Index32%

10%

Other

Institutional Fidelity

19% MERS 12%

9%

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Robust CLG Life of Mine Plan

Strong cash flow through 2030

Averaging 7.7 Moz/yr Ag or 13.9 Moz/yr AgEq in 2024-2026

46% increase in total silver production(1)

Targeting 3 to 4 year further life extension from SE Deeps(2)

LOM Plan Highlights - 100% basis(3,4)

Silver	Silver Equivalent
Production	Production(5)
6.6 Moz	12.4 Moz
average per year	average per year
By-product AISC(6)	Co-product AISC(6)
$7.70	$14.30
per oz Ag	per oz AgEq
Free Cash Flow(7,8)	NPV(7)
$75 M	$462 M
average per year	at 5% discount rate

The 2023 LOM Plan, announced on September 6, 2023, assumes base case commodity prices of $22/oz silver, $1.20/lb zinc, $0.90/lb lead, $1,700/oz

gold and $3.50/lb copper and a Mexican Peso exchange rate of MXN 20.00 per US$1.00.

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