Gatos’ Transformative Combination with First Majestic Silver

On September 5, 2024 Gatos Silver, Inc. made the following announcement relating to its transformative combination with First Majestic Silver. For more information, click on this link or visit https://investor.gatossilver.com/news/default.aspx. The following transaction highlights are sourced from the September 5, 2024 announcement:

TRANSACTION HIGHLIGHTS⁽¹⁾

• Consolidates three world-class, producing silver mining districts in Mexico under one banner: Cerro Los Gatos, San Dimas and Santa Elena collectively provide the foundation of a diversified, intermediate primary silver producer
• Enhances production profile with strong margins: Combined annual production of 30-32 million ounces of silver-equivalent, including 15-16 million ounces of silver at all-in sustaining costs of US$18.00-US$20.00 per silver-equivalent ounce⁽²⁾
• Bolsters free cash flow generation: Gatos expected to immediately contribute annual free cash flow of approximately US$70 million to the combined entity⁽³⁾
• Leverages a highly experienced combined team with a strong track record of value creation in Mexico: Over 20 years of experience operating in Mexico, with an emphasis on socially responsible mining, community engagement and value creation
• Maintains peer-leading exposure to silver: Over 50% of pro forma revenue derived from silver compared to an average of ~30% for intermediate silver producing peers
• Creates a 350,000 hectare highly prospective land package which has yielded a history of exploration success and economic discoveries: Cerro Los Gatos contributes approximately 103,000 hectares of unencumbered land with significant new discovery potential to an existing package of approximately 245,000 hectares across San Dimas, Santa Elena, and other First Majestic properties, which has yielded a history of exploration success and economic discoveries
• Results in a larger company with a strengthened balance sheet, leading trading liquidity and improved capital markets profile: Pro forma market capitalization approaching US$3 billion, average daily trading liquidity of approximately US$49 million⁽⁴⁾, and well-positioned to deliver increased shareholder value
• Realizes meaningful synergies: Corporate cost savings, supply chain and procurement efficiencies, cross-pollination of expertise, and acceleration and optimization of internal projects and exploration programs all expected to deliver meaningful value creation for all shareholders

⁽¹⁾ Please see the Key Documents for further information including with regard to Forward Looking Statements

⁽²⁾ Based on First Majestic and Gatos 2024 production guidance, adjusted for First Majestic metal price assumptions and shown on an attributable basis

⁽³⁾ Based on analyst consensus estimates for 2024.

⁽⁴⁾ Based on each company’s average daily value traded over the last twelve months