Discovery Intersects 448 g/t AgEq over 46 m within 260 g/t AgEq over 133 m in North Corridor Drilling at Cordero

Highlight intercepts include:

• 132.6 m averaging 260 g/t AgEq1 from 204.7 m (78 g/t Ag, 0.11 g/t Au, 1.7% Pb and 2.8% Zn) in hole C21-479 including:
  46.3 m averaging 448 g/t AgEq1 (110 g/t Ag, 0.10 g/t Au, 2.4% Pb and 5.9% Zn) including;
  21.5 m averaging 748 g/t AgEq1 (194 g/t Ag, 0.12 g/t Au, 4.2% Pb and 9.6% Zn)
• 77.1 m averaging 190 g/t AgEq1 from 361.1 m (55 g/t Ag, 0.12 g/t Au, 1.4% Pb and 1.8% Zn) in hole C21-479 including:
  19.6 m averaging 422 g/t AgEq1 (137 g/t Ag, 0.25 g/t Au, 3.7% Pb and 3.2% Zn)
• 86.2 m averaging 192 g/t AgEq1 from 312.5 m (51 g/t Ag, 0.09 g/t Au, 1.2% Pb and 2.2% Zn) in hole C21-476 including:
  36.5 m averaging 372 g/t AgEq1 (97 g/t Ag, 0.16 g/t Au, 2.3% Pb and 4.3% Zn)
• 81.4 m averaging 184 g/t AgEq1 from 297.3 m (43 g/t Ag, 0.05 g/t Au, 0.9% Pb and 2.5% Zn) in hole C21-496 including:
  44.6 m averaging 251 g/t AgEq1 (60 g/t Ag, 0.07 g/t Au, 1.3% Pb and 3.4% Zn)

Taj Singh, President and CEO, states: “Our drill results continue to reinforce the broad widths and excellent grades that characterize large areas of the Cordero deposit.  Drilling in the NE Extension was successful in extending the strike length of high-grade mineralization by approximately 100 m. The five best intercepts within this zone, including four intercepts from this release, have returned an average interval of 109 m at 212 g/t AgEq.  Today’s results, along with the final assay results from our Phase 1 drill program will be incorporated in our upcoming resource estimate due to be released later this quarter.”

DRILL RESULTS:

Drilling in the NE Extension zone was successful in expanding the high-grade zone intercepted in C20-319, which returned 168.8 m of 207 g/t AgEq¹ from 140.0 m (see May 7, 2020, press release), by approximately 100 m along strike. Holes in this release drilled to the northeast of C20-319 intercepted 132.6m of 260 g/t AgEq¹ and 77.1 m of 190 g/t AgEq¹ (C21-479), 86.2 m of 192 AgEq¹ (C21-476) and 81.4 m of 184 g/t AgEq¹ (C21-496). Follow up drilling targeting the expansion of this zone to the northeast of C21-496 will be completed during the Phase 2 drill program.  

Drilling in the SW Extension zone was successful in confirming continuity of mineralization within the high-grade bulk-tonnage domain in areas where there were gaps in previous drilling. Highlight intercepts include 102.7 m of 96 g/t AgEq¹ (C21-486) and 55.7 m of 76 g/t AgEq¹ (C21-490). Drilling in the Far NE, an area of the deposit that has seen little previous drilling, was targeting the potential expansion of the high-grade bulk-tonnage domain to the northeast. Assay results reported a number of shallow lower grade intercepts in combination with encouraging intercepts including 94.3 m of 93 g/t AgEq¹ (C21-461), 42.8 m of 92 g/t AgEq¹ (C21-448) and 37.0 m of 98 g/t AgEq¹ (C21-453). These results will be reviewed in conjunction with the updated resource model prior to further drilling in this part of the deposit.

Drill hole locations are shown in Figure 1 (see links below) and detailed drill highlights from the holes in this release are provided in the table below.

DRILL PROGRAM UPDATE:

Phase 1 drilling:  The Company’s Phase 1 drill program concluded at the end of April. The data from the 75,000 m of new drilling (178 holes) completed in this program, along with 133,000 m of historic drilling (292 holes), will be used to support an updated resource (3Q 2021) and PEA (4Q 2021). The final assay results from Phase 1 drilling (14 holes) are expected to be released later this month. Phase 2 assay results that have been received whilst awaiting final assays from Phase 1 will also be used to support the updated resource and PEA.

Phase 2 drilling:  The Company has completed 21,600 m (56 holes) as part of its Phase 2 drill program which will be ongoing through the remainder of the year. Phase 2 drilling will be focused on three key areas: (1) upgrading inferred resources for inclusion in a prefeasibility study; (2) resource expansion of bulk-tonnage mineralization; and (3) testing of the width, grade and continuity of the extensive high-grade vein systems that transect the deposit. There are currently four drill rigs operating on site.

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/5698/20210805_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/5698/20210805_pr_w_sections_final.pdf

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the few silver projects globally that offers margin, size and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico, and is supported by an industry leading balance sheet with approximately C$85 million available for aggressive exploration, resource expansion and future development. Discovery was a recipient of the 2020 TSX Venture 50 award and the 2021 OTCQX Best 50 award.

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 2018 Preliminary Economic Assessment (PEA) authored by M3 Engineering and Technology Corp and includes the most recent resource estimate, completed by Independent Mining Consultants, Inc. It is available on Discovery’s website and on SEDAR under Levon Resources Ltd, a wholly owned subsidiary of Discovery. The PEA assumes metallurgical recoveries of 89% for Ag, 84% for Pb, 72% for Zn and 40% for Au.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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. 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. There can be no assurance that the Private Placement will close on the announced terms. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.