Silvercrest Metals (SILV)

[mick]

GENERAL DEVELOPMENT OF THE BUSINESS
3.1 History
Upon the Company’s incorporation on June 23, 2015, the Company was a wholly owned subsidiary of SilverCrest
Mines Inc. (“SilverCrest Mines”). The Company was established as part of an arrangement (the “Arrangement”)
completed under the BCBCA on October 1, 2015, pursuant to which First Majestic Silver Corp. (“First Majestic”)
acquired SilverCrest Mines after the Company was spun off from SilverCrest Mines to the former shareholders of
SilverCrest Mines.


The Arrangement resulted in the Company holding title to various exploration properties located
in Mexico that were formerly held by SilverCrest Mines. The common shares of the Company (the “Common
Shares”) commenced trading on the TSX Venture Exchange (“TSX-V”) at opening on October 9, 2015, under the
symbol “SIL”.


At the time of the Arrangement, the Company considered its Cruz de Mayo property (“Cruz de Mayo”) in Mexico to
be its material property. During 2016, the Company’s main focus has been its Las Chispas property (“Las Chispas”)
in Mexico.


The Company’s other exploration properties include the Huasabas, Guadalupe, Angel de Plata and
Estacion Llano properties, all located in Mexico.
In connection with the Arrangement, the Company had available working capital of approximately $5,250,000.

In
November 2015, the Company completed a non-brokered private placement of 16,665,143 units at a price of $0.15
per unit for gross proceeds of approximately $2.5 million. Each unit consisted of one common share of the Company
and one half of a common share purchase warrant of the Company, with each whole warrant being exercisable for
one common share of the Company at a price of $0.20 per share for a term of two years.

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