Discovery Intercepts 661 g/t AgEq over 18 m and 265 g/t AgEq over 39 m Outside Current Resource at Cordero

Highlight intercepts include:

• C22-610 intercepted 6 m averaging 388 g/t AgEq¹ (115 g/t Ag, 0.05 g/t Au, 3.7% Pb and 4.1% Zn) from 226.6 m, including 17.8 m averaging 660 g/t AgEq¹ (187 g/t Ag, 0.05 g/t Au, 6.5% Pb and 7.2% Zn); the intercept was more than 700 m outside the current resource and approximately 180 m below historic workings at surface
• C22-605 intercepted6 m averaging 265 g/t AgEq¹ from 27.2 m (89 g/t Ag, 0.13 g/t Au, 1.8% Pb and 3.0% Zn) within an area previously modeled as low grade/waste
• C22-596 intercepted 3 m averaging 184 g/t AgEq¹ from 77.2 m (49 g/t Ag, 0.06 g/t Au, 1.2% Pb and 2.5% Zn) approximately 130 m outside the current resource
• C22-609, the northeasternmost hole drilled by the Company, intercepted 1 m averaging 150 g/t AgEq¹ from 233.7 m (54 g/t Ag, 0.08 g/t Au, 0.5% Pb and 1.3% Zn) and 17.7 m averaging 115 g/t AgEq¹ (35 g/t Ag, 0.01 g/t Au, 0.9% Pb and 1.4% Zn) from 198.2 m

Tony Makuch, Interim CEO, states: “Our drilling in the far northeast of the deposit continues to intercept zones of high-grade mineralization well beyond the limits of our current resource. This current set of drillholes includes the two northeasternmost holes we have drilled on the deposit. Highlight intercepts from these two holes include 33 m of 388 g/t AgEq¹, 33 m of 150 g/t AgEq¹ and 16 m of 147 g/t AgEq¹. These intercepts correspond with historic surface workings that extend more than 200 m further to the northeast. We look forward to follow-up drilling of this new area as we target the potential expansion of the resource in this direction.”  

DRILL RESULTS:

This current set of Phase 2 drill holes was focused on expansion of the open pit and the resource in the northeast of Cordero. The drilling in this part of the deposit is widely spaced with drill spacing typically ranging from approximately 50 m to 250 m. Follow-up step-out and infill drilling in this area will be planned once the resource model has been updated in 4Q 2022 with this new drill data.  

C22-610 intercepted a mineralized fracture system approximately 180 m below historic workings at surface that returned 32.6 m of 388 g/t AgEq¹ from 226.6 m. C22-609, collared approximately 300 m to the northwest of C22-610, confirmed the potential depth extensions of three parallel sets of historic workings at surface. Highlight intercepts below these workings at depth include 33.1 m of 150 g/t AgEq¹, 17.7 m of 115 g/t AgEq¹ and 4.9 m of 375 g/t AgEq¹. These holes are the northeasternmost holes drilled by the Company and intercepted mineralization up to 500 m outside the current resource. Historic surface workings extend at least 200 m further to the northeast, highlighting the potential for resource growth in this part of the deposit.

C22-605 intercepted a near-surface high-grade zone near-surface that returned 38.6 m of 265 g/t AgEq¹ from 27.2 m including 22.3 m of 380 g/t AgEq¹. This zone sits within the far northeast of the resource in an area previously modelled as low grade/waste. C22-596 was drilled approximately 150 m to the northeast of the current resource to test the extension of the Josefina vein trend in this direction. Highlight intercepts from this hole included 60.3 m of 184 g/t AgEq¹ from 77.2 m and 36.4 m of 77 g/t AgEq¹ from 481.3 m.

Detailed drill highlights from the holes in this release are provided in the table below (see attachment)

SUPPORTING MATERIALS:

Supporting maps and sections, drill hole locations and full assay results can be found at the following link:

https://discoverysilver.com/site/assets/files/5910/20220713_sections_assays.pdf

A PDF of this release with supporting maps and sections included as appendices can be found at the following link:

https://discoverysilver.com/site/assets/files/5910/20220713_pr_w_sections_final.pdf

DRILL PROGRAM UPDATE:

The Company has now completed 82,000 m (235 holes) as part of its Phase 2 drill program (excluding drill metres used to support the 2021 Mineral Resource Estimate). Approximately 70,000 m (215 holes) from the Phase 2 program will be used to inform the resource update and Pre-Feasibility Study scheduled for 4Q 2022. Engineering drilling and the initial drill testing of five property-wide targets is ongoing. The Company’s Phase 3 drill program will ramp up in 4Q 2022 and will be based on the results from the resource update and Pre-Feasibility study.

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver deposits. The PEA completed in November 2021 demonstrates that Cordero has the potential to be developed into a highly capital efficient mine that offers the combination of margin, size and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico. Continued exploration and project development at Cordero is supported by a strong balance sheet with cash of approximately C$65 million.

On Behalf of the Board of Directors,

Tony Makuch, P.Eng

Interim CEO

For further information contact:

Forbes Gemmell, CFA

VP Corporate Development

Phone: 416-613-9410

Email: forbes.gemmell@discoverysilver.com

Website: www.discoverysilver.com

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info@resource-capital.ch

www.resource-capital.ch

Sample analysis and QA/QC Program

The true width of the veins is estimated to be approximately 70% of the drilled width. Assays are uncut except where indicated. All core assays are from HQ drill core unless stated otherwise. Drill core is logged and sampled in a secure core storage facility located at the project site 40km north of the city of Parral. Core samples from the program are cut in half, using a diamond cutting saw, and are sent to ALS Geochemistry-Mexico for preparation in Chihuahua City, Mexico, and subsequently pulps are sent to ALS Vancouver, Canada, which is an accredited mineral analysis laboratory, for analysis. All samples are prepared using a method whereby the entire sample is crushed to 70% passing -2mm, a split of 250g is taken and pulverized to better than 85% passing 75 microns. Samples are analyzed for gold using standard Fire Assay-AAS techniques (Au-AA24) from a 50g pulp.  Over limits are analyzed by fire assay and gravimetric finish. Samples are also analyzed using thirty three-element inductively coupled plasma method (“ME-ICP61”). Over limit sample values are re-assayed for: (1) values of zinc > 1%; (2) values of lead > 1%; and (3) values of silver > 100 g/t. Samples are re-assayed using the ME-OG62 (high-grade material ICP-AES) analytical package. For values of silver greater than 1,500 g/t, samples are re-assayed using the Ag-CON01 analytical method, a standard 30 g fire assay with gravimetric finish. Certified standards and blanks are routinely inserted into all sample shipments to ensure integrity of the assay process. Selected samples are chosen for duplicate assay from the coarse reject and pulps of the original sample. No QAQC issues were noted with the results reported herein.

Qualified Person

Gernot Wober, P.Geo, VP Exploration, Discovery Silver Corp., is the Company’s designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and validated that the information contained in this news release is accurate.

TECHNICAL NOTES & FORWARD-LOOKING STATEMENTS:

The most recent technical report for the Cordero Project is the 2021 Preliminary Economic Assessment (PEA). The PEA was completed by Ausenco Engineering Canada Inc. with support from AGP Mining Consultants Inc. and Knight Piésold and Co. (USA). The full technical report supporting the PEA is available on Discovery’s website and on SEDAR under Discovery Silver Corp.

The PEA assumed average life-of-mine recovery assumptions for sulphide material of 84% for Ag, 19% for Au, 86% for Pb and 85% for Zn. The PEA assumed oxide recovery assumptions of 56% for Ag and 63% for Au for crushed feed and 36% for Ag and 35% for Au for uncrushed ROM feed.  

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This news release is not for distribution to United States newswire services or for dissemination in the United States.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Cautionary Note Regarding Forward-Looking Statements

This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking statements. Forward-looking statements including, but not limited to Discovery’s future plans and objectives regarding the Cordero Project and the prospect of further discoveries there, which constitute forward looking information that involve various risks and uncertainties. Although Discovery believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.