Slide 1: Corporate Presentation December 2021
CORPORATE PRESENTATION DECEMBER 2021 TSXV:DEF OTCQX:DNCVF WKN: A1JQW5 TSX.V: DEF OTC: DNCVF
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING INFORMATION AND STATEMENTS This presentation contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. Al
Slide 3: Solid Project Base with a Focus on Precious Metals
SOLID PROJECT BASE | WITH A FOCUS ON PRECIOUS METALS San Acacio Tepal Project Project LOCATION Zacatecas Michoacán PRIMARY Silver Gold-Copper COMMODITY DEPOSIT TYPE Epithermal Vein Porphyry-Epithermal STAGE Resource Pre-Feasibility NI 43-101 1.8mm ozs Au + 16.9mm ozs Ag * RESOURCE 813mm lbs Cu Excel
Slide 4: Why Invest in Defiance?
WHY INVEST IN DEFIANCE? Proven Mine Finders: Leverage to Precious Experienced Management Robust Resource Base Metal Prices: team with decades of (1,2) and Significant exploration success leading Tepal Au Price Sensitivity Exploration Potential to M&A and Mine Zacatecas Resource Development Upside Dr
Slide 5: Tight Share Structure
TIGHT SHARE STRUCTURE Share Structure Share Price History TSXV:DEF TRADING Trading Symbols OTC:DNCVF $1.20 1,600,000 52 Week Hi-Low $1.07-$0.40 1,400,000 Average Daily Trading $1.00 ~264,752 Volume 1,200,000 CASH POSITION Cash (CAD $M) ~$17 $0.80 Price per Share Nov 2021 1,000,000 Volume $0.60 800,0
Slide 6: Zacatecas District Projects
ZACATECAS DISTRICT PROJECTS WITHIN THE BILLION OZ ZACATECAS SILVER CAMP • Located in Zacatecas, Mexico. • Option to acquire 100% ownership. • Current Initial Resource: 16.9 mm Oz. Ag based on 44 holes totalling 10,200m of drilling. • San Acacio and Lagartos projects located on the prolific Veta Gran
Slide 7: San Acacio – Mirador/Almaden
SAN ACACIO – MIRADOR/ALMADEN SIGNIFICANT MINERALIZATION OUTSIDE THE PRINCIPLE VETA GRANDE Hole ID From To Width* Ag Au Cu Pb Zn Zone SADD09- 243.00 244.3 1.3* 769 0.15 0.01 0.23 0.79 Natividad 04A including 243.00 243.3 0.3* 3,090 0.57 0.04 0.92 3.27 Natividad SADD10- 314.85 316.0 1.20* 239 0.42 0.1
Slide 8: 1.85 m of 1102 g/t Ag
1.85 m of 1102 g/t Ag 8 TSX.V: DEF OTC: DNCVF
Slide 9: Target Area
Target Area TSX.V: DEF OTC: DNCVF
Slide 10: Lucita Acquisition
LUCITA ACQUISITION DISCOVERY READY PARTNERSHIP WITH PAN AMERICAN SILVER • Nearly triples Defiance land position in historic Zacatecas silver district. • Option to acquire 100% ownership. • Strengthens land position to ~1/4TH of historical district. • The Zacatecas Silver district has produced >1B Oz
Slide 11: El Palenque
EL PALENQUE MULTI-KILOMETRE TARGET WITH GRADE • Surface grade over multiple kilometres. • Adjacent to San Acacio project. • Un-drilled, high priority target. • 12m wide with 4km of strike length has returned historical grab samples between 25 g/t Ag to over 700 g/t Ag. • Identified through regional
Slide 12: Strategy to Add Value at Zacatecas District Projects
STRATEGY TO ADD VALUE AT ZACATECAS DISTRICT PROJECTS DISCOVERY-FOCUSED MINERAL SYSTEMS GEOSCIENCE FULLY FINANCED EXPLORATION AND RESOURCE DRILLING PROGRAM ADDING OUNCES TO AN ADVANCED ASSET REGIONAL DRILLING COMMENCED IN OCTOBER FOCUSED ON TAHUARES, PALENQUE AND EL PUERTO ONGOING DRILLING TO BE CONT
Slide 13: Tepal Gold-Copper Project
TEPAL GOLD-COPPER PROJECT TECHNICALLY & FINANCIALLY DE-RISKED Railway Highway Paved Road Deposit • Located in Michoacán near the border of Morelia Jalisco State. Tepal Project • 100% ownership. Manzanillo Port Colima • Current M&I resource: 1.8 mm Oz. Au & 813 mm lbs Cu+. • C$27M spent to-date. • Ex
Slide 14: Tepal Gold-Copper Project: Accretive Acquisition in a Down Market
TEPAL GOLD-COPPER PROJECT ACCRETIVE ACQUISITION IN A DOWN MARKET $4.2mm $27.0mm PRE-TAX POST-TAX Acquisition Cost of $1.39 per AuEq. Oz Spent by predecessor company PRE-TAX NPV 5% POST-TAX NPV 5% to discover 1.8mm ozs Au and US $169M Acquired in December 2018 from US $299M ValOro for $4.2mm in Defia
Slide 15: Tepal Gold-Copper Project 2017 PEA Highlights
TEPAL GOLD-COPPER PROJECT 2017 PEA HIGHLIGHTS (USD) LOM Production & Cash Costs Production Summary 300 $1,200 250 $1,000 LOM INITIAL CAPITAL COST 10 Years US$214M Annual Production (koz.) 200 $800 Cost/oz. (US$) 150 $600 PRODUCTION AVERAGES LOM 10 YEARS 100 $400 Au: 79,000 oz 50 $200 Cu: 32Mlbs 0 $0
Slide 16: Exploration Upside at Tepal Centre Block
EXPLORATION UPSIDE AT TEPAL CENTRE BLOCK • South Zone - Strong potential to increase Au and Cu resource through targeted exploration and systematic drilling. • “Central Block” Recent work indicates the presence of high WEST BLOCK grade Au-Ag epithermal zones that remain largely untested. • Drill tar
Slide 17: South Zone – Target: Increasing Resource Base
SOUTH ZONE – TARGET: INCREASING RESOURCE BASE • Re-interpreted Geologic Model indicates porphyry system in south zone open at depth. • Current exploration focused on high-grade Au/Cu mineralization found • At depth in South Pit • TEP-11-026: 309m-496m – 188m - 1.04 g/t Au, 0.38% Cu, 1.2 g/t Ag. • Al
Slide 18: Exploration Upside in Centre Block/Tizate
EXPLORATION UPSIDE IN CENTRE BLOCK/TIZATE CENTRE BLOCK WEST BLOCK TIZ-11-018: 282.95 to 284.37m* 25.3 g/t Au, 565 g/t Ag • 5 Zones identified. 12 holes planned alongside surface exploration work. • Recent work indicates the presence of Au- Ag epithermal zones that remain largely untested. 18 TSX.V:
Slide 19: Why Invest in Defiance?
WHY INVEST IN DEFIANCE? Robust Resource Base Proven Mine Finders: Leverage to Precious (1,2) and Significant Experienced Management Metal Prices: Exploration Potential team with decades of Tepal Au Price Sensitivity exploration success leading to M&A and Mine Zacatecas Resource Development Upside Hi
Slide 20: Defiance Silver Corp contact
Defiance Silver Corp www.defiancesilver.com Suite 2900 – 550 Burrard Street info@defiancesilver.com Vancouver, BC, V6C 0A3 Canada +1 (604) 343-4677 TSXV:DEF OTC:DNCVF WKN: A1JQW5 TSX.V: DEF OTC: DNCVF
Slide 21: Appendix
APPENDIX 21 TSX.V: DEF OTC: DNCVF
Slide 22: Industry Veterans with Proven Success
INDUSTRY VETERANS WITH PROVEN SUCCESS Chris Wright, BA Dunham L. Craig, P.Geo Chairman of the Board & CEO Director Founder and Director of Windermere Capital, an investment firm and manager of Past Director of Silvercrest Mines Inc., Past President and CEO and Director two private investment funds:
Slide 23: Unexpected Developments: A Catalyst for Silver
UNEXPECTED DEVELOPMENTS | A CATALYST FOR SILVER Global Silver Production by Country in 2018 Silver Demand by Industry Rank Country MMozs Photography 1 Mexico 196.6 & Silverware 2 Peru 144.9 Mandatory 10% Mine Closures 3 China 114.9 Industrial 4 Russia 43.4 Disruption or Electronics, 5 Chile 42.1 Vol
Slide 24: San Acacio Project: Inferred Mineral Resource Estimate
SAN ACACIO PROJECT 43-101 COMPLIANT INFERRED MINERAL RESOURCE ESTIMATE 43-101 Inferred Mineral Resource Estimate Grade>Cut-off Contained Metal Tonnes > Cut- Vein off (tonnes) Ag Ag AgEq Au (g/t) AgEq (g/t) Au (ozs) (g/t) (ozs) (ozs) VETA G 2,150,000 192.43 0.19 204.66 13,302,000 10,000 14,147,000 VE
Slide 25: San Acacio Project: Post-Resource Drill Results Summary
SAN ACACIO PROJECT “POST-RESOURCE” DRILL RESULTS SUMMARY Hole # From (m) To (m) Length Ag (g/t) Au (g/t) Cu % Pb % Zn % AgEq (m)* (g/t)** SAD14-01 134.00 142.10 8.10 222.12 0.22 0.01 0.20 0.53 268.13 SAD14-02 168.50 171.70 3.20 419.09 0.82 0.02 0.14 0.30 499.43 SAD14-03 05.00 213.30 8.30 42.89 0.92
Slide 26: Tepal Gold-Copper Project: Mineral Resource Estimate
TEPAL GOLD-COPPER PROJECT 43-101 COMPLIANT MINERAL RESOURCE ESTIMATE Tepal Total Project Resource Estimate1 – March 2012 Mineral Resource (Mine Diluted) Included in PEA Mine Plan12 Resource Au Grade Contained Au Contained Cu Resource Au Grade Contained Au Contained Cu Tonnes Cu Grade (%) Ag Grade (g
Slide 27: Tepal Gold-Copper Project: Project Profile
TEPAL GOLD-COPPER PROJECT PROJECT PROFILE Flotation Concentrate & Tails Cyanidation Recovery Estimates Oxide Leach Recovery Estimates Combined Flotation Tails Cyanidation Recovery Tepal Recovery Tepal Recovery Copper 88.2% 88.2% Gold 83.2% Gold 62.4% 16.5% 78.9% Silver 63.3% Silver 27.4% 15.5% 40.2%
Slide 28: Tepal Gold-Copper Project: 2017 PEA Assumptions and Highlights
TEPAL GOLD-COPPER PROJECT PROJECT PROFILE 2017 PEA Assumptions 2017 PEA Highlights % Δ in Base Case Sustaining Capital Costs $86.7 Metals Prices -10% 0% 10% Gold Price (US$/oz) $1,125 $1,250 $1,375 Mine Life 9.8 years Copper Price (US$/lb) $2.25 $2.50 $2.75 Total Material Mined 142.9 Mt Silver Price
Slide 29: Tepal 2017 PEA Production by Year & Cost Profile
TEPAL GOLD-COPPER PROJECT PROJECT PROFILE 2017 PEA Production by Year & Cost Profile 300,000 $1,200 250,000 $1,000 Gold-Equivalent Ozs 200,000 $800 USD per Oz 150,000 $600 100,000 $400 50,000 $200 - $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Payable Gold Copper Equival