The Right Combination Silver Management Chile July 2020 - - PowerPoint PPT Presentation

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The Right Combination Silver Management Chile July 2020 - - PowerPoint PPT Presentation

A FTERMATH S ILVER I NVESTOR P RESENTATION TSX.V: AAG - OTCQB: AAGFF The Right Combination Silver Management Chile July 2020 Photograph: The Challacollo Project, Chile www.aftermathsilver.com | TSX.V : AAG Important Information


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AFTERMATH SILVER – INVESTOR PRESENTATION

July 2020

The Right Combination

・ Silver ・ Management ・ Chile

TSX.V: AAG - OTCQB: AAGFF

Photograph: The Challacollo Project, Chile

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Important Information

Cautionary Statement on Forward Looking Information

This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Aftermath Silver, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward looking statements. Forward-looking statements are based on the beliefs and expectations of Aftermath Silver as well as assumptions made by and information currently available to Aftermath Silver management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in

  • btaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in obtaining or

failure to obtain necessary permits and approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Aftermath Silver believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. For more information the reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors, accessible through Aftermath’s profile at www.sedar.com Except as may be required by applicable securities laws, Aftermath Silver disclaims any intent or obligation to update any forward-looking statement. Although Aftermath Silver has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Aftermath Silver disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.

Cautionary Note About Mineral Resources

This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the Mineral Resource estimate. Readers are cautioned that: (a) Mineral Resources are not economic Mineral Reserves; (b) the economic viability of Mineral Resources that are not Mineral Reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated Mineral Resources will lead to Mineral Reserves that can be mined economically. In addition, Inferred Resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for certain preliminary economic assessments.

Challacollo and Cachinal Historic Mineral Resources

Slide 11 of this presentation quotes a Historic Mineral Resource for Challacollo. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For full details of the Challacollo Historic Mineral Resource please see the NI 43-101 Technical Report dated March 31, 2015, with an effective date of December 31, 2014 titled “NI 43-101 Technical Report for the Challacollo Silver Project, Region 1, Chile” QPs Mroczek, M., Collins, M. and Butler, S. of Mining Plus Canada Consulting Ltd. and Tapia, J.C., of Sedgeman S.A. Prepared for Mandalay Resources, available on the Mandalay Resources SEDAR profile. Slide 21 of this presentation quotes a Historic Mineral Resource for Cachinal. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For full details of the Cachinal Historic Mineral Resource please see the NI 43-101 Technical Report dated February 30, 2015, with an effective date of April 30, 2008, titled “Mineral Resource Estimation, Cachinal Silver-Zinc-Gold Project, Region II, Chile” QPs Cole, G., Couture, J.-F., and Keller, G.D. of SRK Consulting (Canada) Inc. Prepared for Apogee Minerals Ltd., now available on the Halo Labs Inc. SEDAR profile.

Mineral Resources - Cautionary Note to US Investors

This presentation has been prepared in accordance with the requirements of Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (''NI 43-101'') and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. securities laws. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian public disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC"), and information concerning mineralization, deposits, mineral reserve and resource information contained or referred to herein may not be comparable to similar information disclosed by U.S. companies.

Qualified Person

Peter Voulgaris, MAIG, MAusIMM,, is a non-independent qualified person, as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this Presentation and consents to the information provided in the form and context in which it appears.

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COVID-19 Statement

The health and safety of our team, their families and the communities in which we work are the key priorities for Aftermath’s Board of Directors in light of the current unprecedented circumstances. Aftermath’s exploration plans have been postponed until the relevant authorities in Chile and Canada permit normal business activities to resume. With international and local travel restricted in both Canada and Chile, we will resume our activities when permitted. Nevertheless, our planning continues, although selection of key contractors such as drillers is impossible until site visits can resume. We thank all of our investors for their patience.

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Aftermath Silver: The Right Combination

Silver

There are currently few, pure silver projects leading to strong investor demand for silver-focused companies.

Management

Ability to raise capital and advance projects from exploration through to development/mining.

Chile

Premier mining jurisdiction with a skilled work force and an established mining framework. History of silver mining.

Photograph: The Cachinal Project, Chile

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Corporate Summary

Objective

Acquire silver assets with current or historic resources & exploration upside. Focus on projects with infrastructure. Operate in high-ranking mining friendly jurisdictions.

Strategy

Build a silver-focused exploration & development/mining company and monetize. Advancing 2 Chilean silver projects -Cachinal & Challacollo – as potentially open pit projects. Generating significant resource growth in areas previously overlooked, and de- risking through other project development activities.

Current Focus

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Ralph Rushton

President, CEO, Director

Mining Exploration Marketing Capital Raising

Peter Voulgaris

Technical Advisor

Exploration Mining Engineering Project Management

Key People: Management & Board

Michael Williams

  • Exec. Chairman, Director

M&A Marketing Executive Management Capital Raising

Keenan Hohol

Director

David Terry

Director

Geology & exploration Corporate finance CEO Genesis Metals Director of Genesis, Great Bear, Aftermath, Golden Arrow, Blue Sky Uranium Former general counsel Pan American Silver Corporate governance Securities law & M&A Director of Genesis, Aftermath

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Private Placements

  • Oct. 30, 2019:

$2.5m @ 8c + 3yr ½ warrant @ 12c (32m units)

  • Nov. 14, 2019:

$3.3m @ 20c + 3yr ½ warrant @ 25c (16.5m units)

  • Eric Sprott invested $3m in the 20c round.
  • May 7, 2020:

$1.5m @ 20c + 3yr ½ warrant @ 25c (7.5m units) US Listing

  • OTCQB: AAGFF

2020 Exploration Program*

  • Preliminary field work
  • Permitting - 3-4 months estimated.
  • Drilling to follow permitting, if capital markets permit

*Field activities currently halted pending lifting of COVID restrictions in Canada and Chile

Recent Developments

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As of July 13, 2020 Issued and Outstanding : 91.6m Warrants: 25.8m Options: 5.9m Fully Diluted: 123.3m Management & insiders 25% of issued. Eric Sprott: 16.2% of issued Cash at hand approx. C$3.0m Cash value of warrants: C$4.66m

Capital Structure & Share Performance

3 month average daily trading volume: TSX-V 474,000 shares/d OTCQB 380,000 shares/d

90D average 20D average

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Chile

  • Low political risk: Chile is top ranked jurisdiction in Latin America.
  • Stable and pro-mining.
  • Skilled workforce.
  • Mining accounts for 10% of Chile’s GDP and 50% of Chilean Exports.
  • Chile is a Top 10 global mining destination.
  • World’s 4th largest silver producer, with a history of stand-alone silver mines.

Chilean lawmakers had planned to hold a referendum in April 2020 on how best to rewrite the current constitution. Reform process began Oct. 2019 & is scheduled to take 2 years.

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2 Silver Exploration Projects

Quebrada Blanca

Both projects are former producing silver mines

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Challacollo Overview

Location 130km from the port city of Iquique in northern Chile. 30km from the Pan American Hwy, elevation 1,500m Area Concessions cover approximately 19,000 Ha. Annual fees ca. $100k Deposit Type Low sulphidation epithermal silver-gold quartz veins Ownership Option to purchase 100% from Mandalay Resources (Mandalay’s exploration and acquisition costs – approximately $C33 million) Infrastructure Accessed from Teck’s Quebrada Blanca access road. Power 15-30km. Water rights for 12 l/s Status Design of 2020 exploration program underway. Old stope at Challacollo

*Historic Mineral Resource: An independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current indicated mineral resource or inferred mineral resource, and Aftermath is not treating the historical estimate as a current mineral resource. For full details please see the March 2015 43-101 Technical Report “NI 43-101 Technical Report for the Challacollo Silver Project, Region 1, Chile” QPs Mroczek, M., Collins, and M.,Butler, S. of Mining Plus Canada Consulting Ltd. and Tapia, J.C., of Sedgeman S.A. Prepared for Mandalay Resources, available on he Mandalay Resources SEDAR profile.

Historic Mineral Resource*

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Cha Challacollo: Upside de

Challacollo – Infrastructure

  • Accessed via Teck’s paved Quebrada Blanca access road via a

20 km dirt track.

  • Paved road A85 passes through the Challacollo exploration

tenements, approximately 6 km to the south of the historic resource area.

  • An easement has been made through the Challacollo

exploration tenements to allow access to Teck’s Quebrada Blanca desalination water and concentrate pipelines.

  • High voltage power lines located 12 km to north and 30 km to

the south east.

  • 44 km along existing alignments to the Lagunas substation.
  • Ground water licences located 17 km east and 30 km

southwest of Challacollo.

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Challacollo

Core storage & logging facility Teck water pipeline route under construction Historic stopes Site panorama

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Challacollo Historic Exploration Work

Aftermath’s exploration will benefit from a large amount of historic exploration data dating back to the 1980s.

1995-96: Minera Mantos Blancos drilled 22 RC holes (3,000m), 10 cut Lolón vein 2001: Codelco options property, drilling 16 RC holes (3,985m) 2001: Silver Standard options property, completes NI43-101 compliant resource estimate 2002-07: Silver Standard completes 7 diamond holes (746 m) and 88 RC holes (15,462 m) Underground survey, mapping and sampling every 25 m down the underground development. 2013: Mandalay Resources drills 52 diamond core holes (9,153m) 2014: Mandalay completes NI43-101 compliant resource estimate Total drilling to date, RC and diamond core = 185 holes, 32,982m

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Challacollo Historic Silver Production*

  • History of mining since 1772, uninterrupted between

1896 and 1931;

  • Estimated 900kT of ore produced historically;
  • 1931 to 1980 main zone of mineralization was mined

by artisanal miners;

  • Commercial production was restarted by Minera

Challacollo in 1980 and continued until the early 1990s.

  • No silver production figures available.

* Source: NI43-101 technical Report for the Challacollo Silver Project, Region 1, December 31, 2014, Chile prepared by Mining Plus Canada Consulting Ltd

Historic production stope on the Lolón vein at Challacollo

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Challacollo Veins

Location of Lolón shoot shown slide 16

Geology

  • Upper Cretaceous volcanics overlying older sedimentary

sequence.

  • Dacites and rhyolites intruded by Upper Cretaceous

granitoids.

  • Regional dip to the southeast.

Veins

  • Veins dip steeply to west. Multiple veins, over a 3km strike

length.

  • 5 main NE trending epithermal veins (Lolón, Lucy,

Palermo, Gladys 4, and Gladys) controlled by NE and NW dipping normal faults.

  • Historic Resource hosted by the Lolón vein.
  • Lolón Vein – 5-15m thick.
  • Excellent exploration upside.
  • Halo target hangingwall of theLolón vein.
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Cha Challacollo: Upside de

Lolón Vein Long Section

Approximate base of weathering Along-strike oxide potential, under sand cover High grade shoot, sulphide potential, sulphide metallurgy to be confirmed Parallel high grade veins & low grade halo to be investigated over 2 km of known Lolón Vein strike

Position of cross section

  • n next slide
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Challacollo: Halo Target

Hangingwall halo structures are NOT part

  • f the Lolón Historic Mineral Resource

Footwall potential is less well understood. Drilling needs to extend into footwall

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Challacollo: Work Program

  • Commence field work as soon as COVID-19 movement restrictions are lifted and it is safe to do so.
  • Cutting & assaying of unsampled core intersections through the hangingwall Halo Target (±3,000m of

core).

  • Scoping metallurgical test work on Halo target material.
  • Resource drilling : Halo Target, Lolón vein and Lolón East footwall splay.
  • Metallurgical test work on Lolón vein & Halo Target material.
  • Additional sub-parallel vein systems to be tested with minimum drilling. First target is the Lucy vein,

which has only been intersected in two previous drill holes e.g. CHAG-36 : 5m @ 256 g/t Ag from 22m down hole.

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Proje ject ct Sum ummari ries Cachinal

1905 2018

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Cachinal Overview

Location 170km from Taltal in Northern Chile. 25km from the Pan American Hwy. The Cachinal project is accessible year round - Elevation 2,700m Deposit Type Low sulphidation silver-gold quartz veins, potential for high-grade silver at depth. Area 4,867 Ha comprised of 16 mining concessions. Ownership AAG is purchasing the Cachinal holding company from Halo Labs, which owns an 80% interest for C$1.575m in staged cash payments. The remaining 20% of the project is

  • wned by Silver Standard.

Infrastructure Power lines are located 15-30km from property. Road access via the Guanaco Mine. Status Planning for 3D survey of u/g workings. Drill collar locations have been selected for first stage drilling. Mineral Resources Historic resource from Valencia Ventures Inc. 2008. However, an updated NI43-101 compliant technical report is in preparation by SRK Consultants of Toronto.

Historic mine workings, Cachinal

Historic Mineral Resource*

* Historic Mineral Resource: An independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current indicated mineral resource or inferred mineral resource, and Aftermath is not treating the historical estimate as a current mineral resource. For full details of the Cachinal Historic Mineral Resource please see the NI 43-101 Technical Report dated February 30, 2015, with an effective date of April 30, 2008, titled “Mineral Resource Estimation, Cachinal Silver-Zinc-Gold Project, Region II, Chile” QPs Cole, G., Couture, J.-F., and Keller, G.D. of SRK Consulting (Canada)

  • Inc. Prepared for Apogee Minerals Ltd., & available on the Halo Labs Inc. SEDAR profile.
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Cha Challacollo: Upside de

Cachinal – Infrastructure

  • 2.5 hours drive from Antofagasta
  • Accessed via B-865 road to Austral Gold’s Guanaco

Gold-Silver Mine, then via a 15 km dirt track.

  • National Grid fed by renewables at Taltal wind farm

and Paposa and TalTal Solar farms

  • High Voltage Power lines located 35 km to west and

16 km south (at Guanaco)

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Cachinal Historic Silver Production*

  • Sporadic history of mining in the Cachinal Mining District dating back to the middle 1800s1;
  • Total Ag production to 1992 estimated at 32-million ounces2;
  • Production records from 1985-87 indicate 171,000 tonnes mined at an average grade of 280g/t Ag + 0.58g/t Au3;
  • Estimated 180,000-190,000 tonnes of material mined and left at surface grading between 180-290g/t Ag, some on

leach pads3.

*Aftermath has not been able to independently verify these production estimates. Aftermath is not treating the surface dumps of mined material as current mineral resources or mineral reserves. A portion of this material was reworked as a heap leach on the east side of the Cachinal property, reportedly during the 1980s.

  • 2. Llaumet, C., (1992). Proyecto Cachinal de la Sierra. Geología – Recursos Minerales – Programa de Evaluación. Taltal – Segunda Región.
  • 3. Clunes, R. 1973: Evaluación de los relaves y desmontes de plata de Cachinal de la Sierra. Provincia de Antofagasta. Corporación de Fomento CORFO.

Comité Sectorial Minero Industrial. Dpto. Producción (Mimeo).

  • 1. Kuntz, J. 1928: Monografía de la Provincia de Antofagasta. Sociedad Nacional de Minería. Santiago, Chile.
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Historical Exploration Work

  • 197 RC holes, over 28,000m;
  • 22 core holes, 4,951m;
  • 43 trenches, 2,076m;
  • 129 line km of ground electromagnetic surveying (VLF-EM).
  • 955 line km of ground magnetic surveying.
  • 1,109 soil geochemical samples (200-400 metre lines and 50-

100 metre stations). Valencia: 2004-2008

  • 13 core holes; 1,568.5m to test rock geochemical targets

and evaluate the strike extension of the known silver- bearing veins. Sernageomin: 1986-87 Aftermath’s exploration will benefit from a large amount

  • f historic exploration data dating back to the 1980s.

Historic drill collar monuments, Cachinal project

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Proje ject ct Sum ummari ries Cachinal: Heap Leach Pad

Heap leach pad stacked with crushed material by previous

  • perator
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Cachinal Geology

  • Located in the Paleocene-Eocene Gold Belt of N. Chile,

host to several significant gold and silver deposits;

  • Cachinal veins located near western margin of a large

volcanic caldera feature;

  • Property geology: bimodal volcanics/domes +

volcaniclastic sediments;

  • Up to 20 interconnected sub-parallel, low-sulphidation

epithermal quartz veins, and vein breccias.

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Work program:

  • 3D laser surveys of historic mine workings.
  • Reprocessing of historic geophysical survey data.
  • Permitting of 3,500m RC and diamond core program

planned using existing drill sites to minimise disturbance.

  • Metallurgical test work on core.
  • Possible sonic drill program on run-of-mine dumps and

historic leach pads.

  • 3D inversion modelling of existing detailed ground

magnetics

  • Extension of historic soil sampling grids.

Cachinal: Work Program

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The Next 12 Months

  • Commence field work as soon as COVID-19 movement restrictions are lifted and it is safe to do so.

⁻ Cutting and assaying of +3,000 m existing core at Challacollo ⁻ 3D surveys of historic workings at Cachinal ⁻ Permitting of drilling at both Challacollo and Cachinal (~3 months) ⁻ Extend soil geochemistry at Cachinal regional prospect

  • Continue to review other silver project opportunities
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Highlights

  • Two significant silver projects in Chile with historic silver resources;
  • Both projects open along strike and at depth;
  • Exploration to start upon lifting of COVID-19 travel restrictions;
  • Aftermath trades on average >400,000 shares per day;
  • Institutional and retail shareholder base.
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CONTACT INFORMATION

April 2020

TSX.V: AAG OTCQB: AAGFF

Ralph Rushton

President, CEO & Director

ralphr@aftermathsilver.com

Phone : +1 604 484 7855

http://aftermathsilver.com/

Mike Williams

  • Exec. Chairman & Director

mw@octaviancapital.com

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Amended Challacollo LOI, AAG to acquire 100%:

  • $500,000 cash to be paid on or before July 31st, 2019 (Paid)
  • $500,000 cash to be paid on or before December 31st, 2019 (Paid)
  • $1,000,000 cash to be paid on or before December 31st, 2020;
  • $5,500,000 on or before April 30, 2021. At Mandalay’s option, payment can be in AAG shares up to a value of

$2,750,000; OR

  • AAG can elect to pay $3,000,000 on or before April 30, 2021 and an additional $3,000,000 on or before April 30,
  • 2022. At AAG’s option, 50% of both payments can be in AAG shares;
  • Mandalay retains a 3% Net Smelter Returns royalty on production, up to a maximum of $3,000,000.
  • SSR Mining is entitled to a 2% NSR royalty with respect to all Ag products from the Challacollo concessions, payable

from and after the date on which 36,000,000 ounces of silver have been sold or credited to the account of Mandalay, up to a maximum amount of $5 million.

Challacollo Deal Terms

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  • AAG agreed to purchase 80% of the issued shares of Minera Cachinal (MC) from Halo Labs (formerly Apogee) for

$1,575,000. MC owned a 100% interest in the property;

  • AAG issued a $1.575m convertible debenture to Halo Labs, convertible @ $0.20, with staged repayments of

$250,000, $525,000 and $550,000 due 6, 12 and 18 months after closing;

  • May 2020, AAG closed the debenture by issuing 4,000,000 shares to Halo;
  • May 27, 2020 AAG acquired SSR’s 20%. AAG paid SSR $49,999 in cash with $50,000 to be paid on the first

anniversary of the effective date.

  • Aftermath Silver has also agreed to pay SSR $600,000 to settle debts owed to SSR by Minera Cachinal. The

$600,000 will be paid to SSR according to the following schedule: $300,000 on the second anniversary of the effective date; $300,000 on the third anniversary of the effective date.

Cachinal Deal Terms

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Challacollo Geology