Mako Mining : Q3 2023 MD&A

MANAGEMENT DISCUSSION AND ANALYSIS

For the three and nine months ended September 30, 2023

(Expressed in United States dollars)

For the three and nine months ended September 30, 2023

This Management Discussion and Analysis ("MD&A") is intended to help the reader understand Mako Mining Corp. (the "Company" or "Mako"), the operations, financial position, and current and future business environment. This MD&A is intended to supplement and complement Mako's condensed interim consolidated financial statements for the three and nine months ended September 30, 2023, which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards ("IFRS") applicable to the preparation of interim financial statements, including International Accounting Standard 34, Interim Financial Reporting.

Additional information regarding Mako, including the risks related to the business and those that are reasonably likely to affect Mako's financial statements in the future, is contained in the continuous disclosure materials, including the most recent audited consolidated financial statements and Management Information Circular, which is available on the Company's website at www.makominingcorp.comand under the Company's profile on the SEDAR+ website at www.sedarplus.com.

This MD&A has been prepared as of November 10, 2023. All amounts are expressed in United States (US) dollars ("$"), unless otherwise stated. References to "C$" are to the Canadian dollar.

BUSINESS OVERVIEW

Mako Mining Corp. was incorporated on April 1, 2004, under the laws of the Yukon Territory and continued into British Columbia under the British Columbia Corporations Act. The Company is listed on the TSX Venture Exchange ("TSX-V") under the symbol "MKO". The Company's principal business activities are the production of gold and the exploration of its mineral interests in Nicaragua.

The Company's main asset is the San Albino gold deposit, located within the San Albino-Murra Property, located in Nueva Segovia, Nicaragua ("San Albino"). It was a historical small-scale underground gold producer, commencing production in the early 1900's and operating on and off until approximately 1940. Mako's management brought the San Albino mine into commercial production on July 1, 2021.

The projected free cash flow from the San Albino Mine is anticipated to fund exploration on Mako's prospective 188 square kilometer ("km") land package in Nicaragua.

FINANCIAL HIGHLIGHTS, MAJOR ACTIVITIES AND SIGNIFICANT SUBSEQUENT EVENTS

• Revenues of $10.7 million and $39.5 million (Q3 2022 - $13.6 million and YTD Q3 2022 - $47.3 million) for the three and nine months ended September 30, 2023 ("Q3 2023" and "YTD Q3 2023"), respectively.
• Sales of 5,767 ounces ("oz") and 21,214 oz (Q3 2022 - 8,327 oz and YTD Q3 2022 - 26,934 oz) of gold in Q3 2023 and YTD Q3 2023, respectively from the San Albino Mine.
• Net loss of $1.5 million and $2.7 million (Q3 2022 -$7.0 million and YTD Q3 2022 $11.2 million) for Q3 2023 and YTD Q3 2023, respectively.
• Production of 7,937 oz and 23,195 oz (Q3 2022 - 8,370 oz and YTD Q3 2022 - 26,907 oz) of gold at the San Albino mine respectively; 7,694 oz and 23,053 oz. (Q3 2022 - 12,399 oz and YTD Q3 2022 - 31,138 oz) of silver were produced at the San Albino Mine for Q3 2023 and YTD Q3 2023, respectively.
• Cash generated from operating activities of $2.8 million (YTD Q3 2022 - $13.4 million) in YTD Q3 2023.
• Three monthly repayment installments totaling 50,274 oz of silver ($1.2 million) (Q3 2022 - $1.1 million) were made on the Sailfish Loan during Q3 2023. On September 8, 2023, the Sailfish Loan was fully repaid.
• Delivered 13,500 oz of silver on the Sailfish Silver Loan in Q3 2023.

Subsequent to September 30, 2023:

• Delivered 67,500 oz of silver on the Sailfish Silver Loan.
• On October 16, 2023, the Company granted 975,000 restricted share units ("RSU") and 275,000 deferred share units ("DSU"). The RSUs vest annually over three years commencing on October 13, 2024.

1

For the three and nine months ended September 30, 2023

RESULTS OF OPERATIONS
Financial Performance		Three months ended					Nine months ended
(in $000's)	Sept 30, 2023	Sept 30, 2022		Change			Sept 30, 2023		Sept 30, 2022		Change
Revenue	$	10,707	$	13,637	($	2,930)	$	39,478	$	47,288	$	(7,810)
Income (loss) for the period		(1,472)		(6,990)	5,518			(2,716)		(11,179)		8,463
Operating cash inflows (outflow) before				(1,380)	3,154			10,515		8,537		1,978
changes in non-cash working capital		1,774
Net cash from (used in) operating activities		(1,663)		818		(2,481)		$	2,835	$	13,361	$	(10,526)

Financial Condition (in $000's)

Cash and cash equivalents

Working capital (deficit) (i)

Total assets

Equity

(i) Working capital calculated as current assets less current liabilities.

San Albino Property, Nueva Segovia, Nicaragua

	As at		As at		Change
	Sept 30, 2023		Dec 31, 2022
$	660	$	523	$	137
	5,832		(3,252)		9,084
	43,821		45,171		(1,350)
$	11,371	$	13,670	$	(2,299)

The Company holds 100% of four mineral concessions in Nueva Segovia, Nicaragua for a total land package of approximately 18,817 hectares (188 km2). The San Albino gold deposit, located within the San Albino-Murra Property, is the Company's mine located in Nueva Segovia, Nicaragua. It was a historical small-scale underground gold producer, commencing production in the early 1900's and operating on and off until approximately 1940.

On August 24, 2020, the Nicaraguan Ministry of Environmental and Natural Resources ("MARENA") amended the environmental permit granted to the Company in 2017 (see press release dated September 12, 2017) to allow for the processing of up to 1,000 tonne per day ("tpd") at the San Albino-Murra Property. The amendment is initially effective for a period of five years and can be renewed indefinitely so long as the Company complies with the conditions set forth by MARENA. All other provisions contained in the environmental permit granted in 2017 remain in force and are fully applicable apart from the increased throughput from 500 tpd to 1,000 tpd; total capacity of the two mills on site is 1,000 tpd.

Pre-development work commenced in May 2019 at the San Albino Property, the objective of achieving a thorough understanding of the geology of the area and affirming the continuity and grade of the "in-pit" resources.

On October 19, 2020, the Company reported the results of an updated mineral resource estimate (Technical Report and Estimate of Mineral Resources for The San Albino Project, Nueva Segovia, Nicaragua), which confirmed San Albino's rank among the highest-grade open pit gold projects in the world. In addition, Mine Development Associates, A division of RESPEC ("MDA"), led by Principal Geologist Steve Ristorcelli, has conservatively reflected the selective open pit mining methods presently being utilized at San Albino, such that management has confidence that the fully diluted open pit grade of 9.54 grams per tonne ("g/t") gold ("Au") in the Measured and Indicated categories can be met or exceeded when mined.

On July 1, 2021, the Company declared commercial production.

On June 21, 2022, the Company announced that drilling has confirmed gold mineralization over an area of approximately 530 meters ("m") x 470 m (strike x dip) in an area that was initially identified in the 2020 Mineral Resource Estimate as the SW Pit which at the time measured approximately 50 m x 50 m. On October 13, 2022, the Company reported intersects

2

For the three and nine months ended September 30, 2023

containing 36.65 g/t Au and 29.5 g/t Ag over 3.1 m (Estimated True Width ("ETW")) in the same area, an updated resource comprising the SW Pit was delivered on October 31, 2023.

On October 13, 2022, the Company announced intersects of 36.65 g/t Au and 29.5 g/t silver ("Ag") over 3.1 m at the SW Pit area.

On January 5, 2023, the Company announced that it intersected 98.50 g/t Au and 66.3 g/t Ag over 1.9 m ETW 39 m from surface at the SW Pit.

The table below shows the main variables used by management to measure operating performance of the mine: throughput, grade, recovery metal production and cost.

Operating data		Three months ended
Sept 30, 2023		Sept 30, 2022
Tonnes Mined		1,154,143		1,242,326
Tonnes Milled		51,578		44,452
Availability		94%		94%
Avg Tonnes per day		598		512
Recoverability		78%		77%
Gold sold (ounces)		5,767		8,327
Average realized gold price ($/oz sold)		1,857	$	1,638
Cash Cost ($/oz sold)(1)	$	979	$	1,018
Total Cash Cost ($/oz sold)(1)	$	1,063	$	1,102
AISC ($/oz sold)(1)	$	1,370	$	1,367
EBITDA (in $000's)(1)	$	1,679	$	(820)
Adjusted EBITDA (in $000's)(1)	$	2,996	$	3,961
(1)	Refer to Non-IFRS Measures

Nine months ended Sept 30, 2023 Sept 30, 2022

	4,488,558		4,105,761
	155,536		140,655
	94%		91%
	604		564
	77%		81%
	21,214		26,934
$	1,861	$	1,756
$	907	$	886
$	985	$	940
$	1,371	$	1,181
$	9,722	$	9,466
$	14,663	$	19,107

The decrease in the cash costs per gold ounce sold of $39 to $979 and the total cash costs per gold ounce sold of $39 to $1,063 is driven by the decrease in the stripping ratio which resulted in lower mining costs in Q3 2023, reducing the production costs combined with the increase in recoveries. In addition, processing costs decreased in Q3 2023 as the preg-robbing issue encountered in the prior year is now better managed.

The increase in the Company's AISC per gold ounce sold of $190 to $1,371 for YTD Q3 2023 is driven by the increase in corporate general and administrative costs which included the withholding taxes on the Sailfish Loan that was extinguished during the current quarter.

YTD Q3 2023, the increase in the cash costs per gold ounce sold of $21 to $907 is driven by reduced recoveries on material processed for the period as the gold grade was lower than expected.

EXPLORATION UPDATE

During Q3 2023, there was one operating reverse circulation ("RC") drill rig at the San Albino-Murra Concession, 2,446 m were drilled in the Las Conchitas South area as part of the infill drilling program to gain better understanding of Las Conchitas geology.

RC drilling was performed at Las Conchitas South with objectives of the near-surface, infill drilling campaign to gain a higher level of confidence of the geometry of the mineralization within areas of interest where the Company has received a permit to process material through the plant. The second objective is to test possible extensions of the high-grade

3

For the three and nine months ended September 30, 2023

mineralized blocks and mineralization trends identified in the 2022 drilling campaign. The Company completed 65 RC drill holes totaling 2,446 m.

The Company also completed 26 RC drill holes, totaling 2,028 meters, testing near surface, high grade gold mineralization in the SW Pit area within and proximal to the currently permitted pit limits.

During the same period the Company conducted regional and detailed mapping and sampling at all four concessions (San Albino-Murra, Potrerillos, La Segoviana and El Jicaro).

A regional exploration program on all four concessions had been conducted and a total of 1,220 samples were collected. The program consisted of prospecting and surface and underground mapping. Channel sampling and mapping of the veins underground (reopened historical workings by locals) and on the surface have assisted in determining grade potential and extent. The goal of this program is to validate the width and consistency of each vein or prospect at depth to determine mineralization and mining potential and to help in prioritizing targets. A subsequent exploration program will include a RC drilling program to examine the potential at depth and extent of the outlined veins; additional diamond drilling of the veins would be required to validate the RC drilling results.

Las Conchitas Area

Las Conchitas is situated between two past-producers, the San Albino Mine and the El Golfo Mine. It lies only 2 km south of the mine site for the San Albino Property.

The Las Conchitas area covers approximately 3.75 km2 and is situated immediately to the south of San Albino, where the Company is currently operating a 500 tpd mining and milling operation and immediately to the north of the historical El Golfo Mine located within the Company's El Jicaro Concession.

Las Conchitas contains numerous mineralized structures over a 1,700 m by 800 m area and it has been subdivided into three primary areas: Las Conchitas norte ("LC-North"), Las Conchitas central ("LC-Central") and Las Conchitas sur ("LC- South"). Each of these areas are comprised of multiple subparallel, northeast-southwest striking and gently dipping mineralized veins.

As with the San Albino deposit, the conceptual model for the Las Conchitas mineralization consists of multiple parallel quartz veins that dip gently to the northwest, associated with extensive shear and fault systems which represent possible feeders for mineralized fluids and a favorable environment for precious metal deposition. These characteristics are consistent with the model for orogenic gold-bearing veins, which can extend to depths in excess of a km. Drilling at Las Conchitas has confirmed down-dip continuity of highly mineralized zones identified by trenching; as demonstrated by results of drilling reported on August 18, 2021; gold mineralization is not restricted solely to quartz veins, but also occurs in the host rock (phyllite/schist) containing quartz veinlets.

On July 28, 2022, the Company announced the discovery of "Crucita" which consists of gold bearing structures containing

37.28 g/t of Au and 34.94 g/t of Ag over 2.5 m. Crucita is located approximately 1.44 km south of the San Albino gold mine and is part of LC- North.

The Company has released results for LC-North,LC-South and LC-Central, these results show intercepts with high grade mineralization over minable widths and shallow depths, which may indicate the potential for a significantly larger resource.

On August 18, 2022, the Company announced that it intersected 85.10 g/t Au and 153.0 g/t Ag over 0.8 m (ETW) at LC- Central connecting Mina Bonanza and Cruz Grande and expanding the known strike length to over 295 m in this zone.

On September 8, 2022, the Company reported that it intersected 15.36 g/t Au and 16.0 g/t Ag over 6.7 m (ETW) at LC- Central with additional intercepts at LC-North and LC-South.

4

For the three and nine months ended September 30, 2023

On October 24, 2022, the Company announced that it intersected 42.59 g/t Au over 2.1 m (ETW) at LC-North, 25.07 g/t Au over 2.2 m (ETW) at LC-Central and 65.45 g/t Au over 1.8 m (ETW) at LC-South.

On January 24, 2023, the Company announced results which indicated intercepts of 33.91g/t Au over 1.7 m (ETW) at LC- Central, 12.73 g/t Au over 4.2m (ETW) at LC-South and multiple high grade silver intercepts up to 3,792.0 g/t Ag over 1.0 m across Las Conchitas.

On June 19, 2023, the Company announced that it received approval to begin processing material from Las Conchitas, this material will be processed at the Company's San Albino plant.

On July 27, 2023, the Company announced that it had intersected 30.45 g/t Au over 4.5 m at Las Conchitas, 13 m from surface; at the same time the Company announced that materials from Las Conchitas were starting to be processed at the San Albino plant.

On August 2, 2023, the Company announced additional results from theRC infill drilling at Las Conchita, reporting intersects of 12.09 g/t Au over 11.5 m, 15 m from surface.

On October 31, 2023, the Company announced an updated and extended mineral resource for the San Albino Project which includes the Las Conchita deposit.

El Jicaro Concession

El Jicaro encompasses the southwest extension of the mineralized structures identified on the Corona de Oro Gold Belt. It covers an area of 5,071 ha (51 km2). Several good exploration targets have been outlined there. The mapping and prospecting programs completed to date have defined four parallel zones of mineralization. During Q4 2022, 410 m were drilled at El Jicaro.

Potrerillos Concession

In December 2019, the Company purchased the Potrerillos exploration and exploitation concession ("Potrerillos Concession") formerly owned by a subsidiary of Condor Gold Plc ("Condor"). The Potrerillos Concession comprises 12 km2 of subsurface mineral rights and is contiguous to and along strike from the San Albino gold project. The Potrerillos Concession is valid until December 2031 with the ability to renew for an additional 25 years by the Company.

The property was explored by Condor between 2007 and 2009, with a number of channel samples taken on trenches and former mine adits. Recent drilling at San Albino indicates that the Potrerillos mineralization is an extension of the San Albino deposit; 1,109 m have been drilled during the 2022 drilling campaign. The Company plans to begin exploration work to evaluate whether the San Albino mine can be expanded into this area.

La Segoviana Concession

On April 7, 2020, the Company announced that its wholly-owned Nicaraguan subsidiary, Nicoz Resources, S.A., was granted a new concession by Nicaraguan Ministry of Mines and Energy. The new concession, called La Segoviana, covers an area of 3,845.80 ha (approximately 38.5 km2) and is contiguous to the north and northwest of the Company's San Albino-Murra concession in Nueva Segovia, Nicaragua. The La Segoviana concession allows for both exploration and exploitation and is valid for a period of 25 years, until March 12, 2045.

On May 3, 2021, the Company reported initial results from a reconnaissance exploration program. The initial mapping and sampling have identified four prospects within the La Segoviana concession. A total of 35 channel samples were collected with 23 samples representing the in-situ vein and 12 samples representing dump material. The assays range in value from 0.02 to 43.5 g/t Au, with 12 samples reporting over 10 g/t Au and 15 samples reporting 1-10 g/t Au.

5

For the three and nine months ended September 30, 2023

On August 18, 2021, the Company reported the results of initial mapping and sampling which identified at least four prospects. Initial channel sampling across the four prospects yielded grades of up to 82.5g/t Au.

On March 24, 2022, the Company reported the results from a follow-up reconnaissance exploration program. A total of 367 channel and grab samples were collected within the concession from quartz veins exposed in prospects and historical workings with 169 samples yielding more than 1.0 g/t Au, and one of them yielding 105.7 g/t Au over 1.5 m ETW; details can be found in the respective press release.

On May 30, 2023, the Company reported a discovery in the La Segoviana Concession, specifically 17 km from the San Albino area, highlighting intercepts of 41.99 g/t Au and 28.7 g/t Ag over 1.4 m, 34 m from surface, confirming the orogenic nature of gold mineralization across the 28 km of strike contained within the Company's 188 km2 land package in Northern Nicaragua.

For details on all previously-reported drill results, please see the Company's filings on SEDAR+.

TREND ANALYSIS

Summary of Quarterly Results

(in $000's excluding per share )		2023																2022				2021
Jul - Sept	Apr - Jun	Jan - Mar													Oct - Dec		Jul - Sept		Apr - Jun		Jan-Mar												Oct - Dec
Revenue	10,707	12,853	15,916						16,086		13,637		16,373		17,279						16,647
Cost of sales	(8,057)	(10,951)	(11,424)	(11,693)		(14,608)		(14,537)		(12,701)	(9,664)
Gross profit (loss)	2,650	1,902	4,492						4,393		(971)		1,836		4,578						6,983
E&E expenses	(1,178)	(1,498)	(692)	(3,056)		(3,878)		(2,718)		(1,865)	(1,667)
G&A expenses	(1,895)	(2,235)	(1,491)	(1,285)		(1,613)		(1,593)		(1,741)	(1,332)
Other income (expenses)	(719)	(360)	(423)	(404)		(36)		(113)		(1,416)	(403)
Income taxes	(330)	(438)	(499)	(451)		(492)		(610)		(542)	(397)
Net income (loss)	(1,472)	(2,629)	1,387					(803)		(6,990)		(3,198)		(986)					3,184
Basic & diluted income (loss) per	(0.02)	(0.04)	0.02	(0.01)		(0.01)		(0.05)		(0.01)	0.06
share
The sum of the quarters may not equal the annual results due to rounding.
Gold ounces produced	7,937	6,575	8,683				10,010		8,370		9,018		9,519				9,572
Gold ounces sold	5,767	6,727	8,721	9,956		8,327		9,027		9,580	9,588
Average realized gold price ($/oz)	$ 1,857	$ 1,911	$ 1,829		$ 1,616	$	1,665	$	1,814	$	1,804	$ 1,736
Ore Mined (tonnes)	47,731	46,452	47,239			50,883		52,084		47,220		49,780			44,160
Ore Milled (tonnes)	51,578	54,284	49,675	49,204		44,452		49,332		46,869	38,313
Grade milled (g/t Au)	6.86	5.27	5.74	7.34		7.66		7.36		7.05	9.01
Recovery %	78.1%	71.8%	80.7%	82.3%		76.5%		74.8%		85.3%	92.6%

Revenue: During Q3 2023, decrease in revenue is as a result of a decrease in ounces sold during the quarter offset with a increase in the average realized gold price per ounce sold when compared to the previous quarters.

Cost of sales: During Q3 2023, the cost of sales decreased, as the ounces of gold sold was lower when compared to previous quarters. Decrease of the depreciation, depletion and amortization expense during Q3 2023, is attributed to the majority of mine asset being fully depleted as of Q2 2023 and the extension of the useful life of the plant asset as the Company began processing from the Las Conchitas mining operation.

6

For the three and nine months ended September 30, 2023

E&E expenses: During Q3 2023, the expansion drilling program at the Las Conchitas area was coming to an end as the Company prepared the data to develop the resource model.

G&A expenses: During Q3 2023, the decrease in G&A is mainly attributed to the decrease in headcount due to staff turnover and legal advice sought on corporate matters which is offset by the withholding taxes incurred on the Sailfish Loan payments.

Revenue: During Q2 2023, decrease in revenue is as a result of a decrease in ounces produced and ounces sold during the quarter offset with an increase in the average realized gold price per ounce sold when compared to the previous quarters.

Cost of sales: During Q2 2023, the cost of sales increased, although the production costs and depreciation and depletion and amortization remained consistent with the prior quarter, the ounces of gold sold was lower when compared to previous quarters. Write-down of inventories increased during Q2 2023, arising from the higher costs of mining to access phase 3 of the West Pit, resulting in higher levels of depletion. The higher costs related to phase 3 of the West Pit were incurred as the Company transitions and prepares for the Las Conchitas mining operation.

E&E expenses: During Q2 2023, the expansion drilling program at the Las Conchitas area was coming to an end as the Company prepares the data to develop the resource model.

G&A expenses: During Q2 2023, increase in G&A is mainly attributed to the increase in salaries and benefits expenditure for bonuses and an increase in legal fees as legal advice was sought on corporate matters.

Revenue: During Q1 2023, decrease in revenue is as a result of a decrease in ounces produced and ounces sold during the quarter offset with an increase in the average realized gold price per ounce sold when compared to the previous quarters in 2022.

Cost of sales: During Q1 2023, the cost of sales decreased partially due to a lower depreciation charge on the mineral property asset as it nears the end of its useful life and a decrease in production costs largely due to deferred stripping costs of $3.8 million related to the West Pit phase 3. During Q2 2023, the Company started extracting ore in phase 3 of the West Pit and stopped deferring stripping costs.

E&E expenses: During Q1 2023, the expansion drilling program at the Las Conchitas area was coming to an end as the Company prepares the data to develop the resource model.

G&A expenses: During Q1 2023, decrease in G&A is mainly contributed to the decrease in salaries and benefits expenditure and stock-based compensation offset by an increase in legal fees as legal advice sought on corporate matters increased.

Revenue: During Q4 2022, increase in revenue is as a result of an increase in ounces produced and ounces sold during the quarter together with the decrease in the average realized gold price per ounce sold when compared to the previous quarters in 2022.

Cost of sales: During Q4 2022, the cost of sales decreased partially due to a lower depreciation charge and a decrease in production costs largely due to deferred stripping costs related to the West Pit phase 3 which is expected to start extracting ore in the second quarter of 2023 when compared to previous quarters.

G&A expenses: Decrease during Q4 2022 is contributed by the reversal of an accrual of $0.5 million for non-executive staff bonuses.

7

For the three and nine months ended September 30, 2023

Other income (expenses): Decrease during Q4 2022, arises from the change in the provision for reclamation and rehabilitation and the increase in the foreign exchange loss weakening of the exchange rate between the Canadian dollar and US dollar.

Revenue: During Q3 2022, decrease in revenue is related to the decrease in ounces produced and the ounces sold during the quarter together with the decrease in the average realized gold price per ounce sold when compared to the previous quarters in 2022.

Cost of sales: During Q3 2022, the cost of sales increased due largely to a combination of mining costs, with increased hauling costs, as the distances covered are now longer, and mill processing costs increases following the metal recovery issues experienced during the quarter where preg-robbing material going through the mill was high, the Company conducted a number of tests using different methodologies, reagent quantities and studies, that resulted in a considerable increase in cost of sales, compared to previous quarters in 2022.

The Q3 2022 cost of sales includes a write-down of stockpiled ore of $0.8 million related to historical dump material containing 2.75 g/t of gold that is not being utilized in the current mine plan but management anticipates incorporating this historical dump material in the revised expanded San Albino mine plan expected to be released in 2023.

During Q3 2022, the expansion drilling program at the Las Conchitas area contributed to the increase in exploration and evaluation expenses.

Revenue

	Three months ended			Nine months ended
	Sept 30, 2023	Sept 30, 2022	Change		Sept 30, 2023	Sept 30, 2022	Change
Revenue (in $000s)	$10,707	$13,637	($2,930)		$39,478	$47,288	($7,810)
Gold sold (ozs .)	5,767	8,327	(2,560)	21,214	26,934	(5,720)
Average realized gold price ($ per oz.)	$1,857	$1,638	$219	$1,861	$1,756	$105

The Company's revenue for 2023 and 2022 came entirely from the San Albino Project. The decrease in revenue of $3.0 million (decrease of 22.0%) for Q3 2023 compared to Q3 2022 is a result of selling 2,560 fewer ounces in Q3 2023 offset by realizing a higher average gold price by $219 (increase of 13.4%) per ounce.

The Company sells gold at the spot rate. The average spot gold price for Q3 2023 was $1,928 (Q3 2022 - $1,729), up 11.5% over Q3 2022, and closed on September 30, 2023, at $1,871 per oz, up 13.9% from the closing price on September 30, 2022.

Exploration and evaluation expenses

Expenses by property	Three months ended
(in $000s)	Sept 30, 2023	Sept 30, 2022	Change
El Jicaro	74	-	74
San Albino	367	1,423	(1,056)
Las Conchitas	719	2,282	(1,563)
Other	18	173	(155)
	1,178	3,878	(2,700)

Nine months ended
Sept 30, 2023	Sept 30, 2022	Change
181	3	178
770	3,784	(3,014)
2,038	4,271	(2,233)
380	405	(25)
3,369	8,463	(5,094)

During Q3 2023 and Q3 2022, expenses continued to be primarily associated with the expansion drilling program at the Las Conchitas property 2 km to the South of San Albino.

8

For the three and nine months ended September 30, 2023

During Q3 2023, the expansion drilling program at the Las Conchitas area was coming to an end as the Company prepared the data to develop the resource model.

General and administrative expenses
	Three months ended			Nine months ended
(in $000s)	Sept 30, 2023	Sept 30, 2022	Change		Sept 30, 2023	Sept 30, 2022	Change
Accounting and legal	$187	$202	($15)		$651	$436	$215
Consulting fees	7	19	(12)	31	68	(37)
Directors' fees	91	51	40	273	153	120
Depreciation	25	21	4	77	26	51
General office expenses	26	39	(13)	114	171	(57)
Insurance	109	97	12	379	312	67
Investor relations and communications	41	80	(39)	104	208	(104)
Rent	1	(1)	2	3	26	(23)
Salaries and benefits	822	898	(76)	2,965	2,877	88
Stock-based compensation	119	111	8	395	390	5
Telephone and IT services	37	41	(4)	99	103	(4)
Transfer agent fees and regulatory fees	11	25	(14)	62	80	(18)
Travel	48	30	18	97	100	(3)
Withholding taxes on Sailfish Loan	371	-	371	371		371
	$1,895	$1,613	$282	$5,621	$4,950	$671

Accounting and legal fees: YTD Q3 2023 increased compared to YTD Q3 2022, increase arises from additional legal advice sought on corporate matters.

Director fees: increase compared to prior period arises from the special committee, which was set up in November 2022, is comprised of two directors with each member of this committee receiving $8,000 per month.

Insurance expenses: increase compared to prior period is in line with the increase of premiums.

Salaries and benefits: Q3 2023 decreased compared to Q3 2022 resulting from a decrease in headcount.

Increase in stock-based compensation during Q3 2023 compared to Q3 2022 is as a result of 540,000 options that were granted in the quarter ended June 30, 2023 ("Q2 2023"), that are being expensed using the graded vesting method. No stock-based compensation was granted during Q3 2023. During Q2 2023, 38,829 RSU were granted.

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