June 2017 TSXV: SCZ FSE: 1SZ - Santa Cruz Silver Mining Ltd. · June 2017 TSXV: SCZ FSE: 1SZ. ... SME-RM, and, Patrick F ... Graduated with a BSc in mining and metallurgy and an MS

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TSXV: SCZ FSE: 1SZ

Santacruz Silver Mining Ltd. All Rights Reserved

June 2017 TSXV: SCZ FSE: 1SZ

IMPORTANT CAUTIONARY NOTES

The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Santacruz Silver Mining Ltd. (the “Company”). It should be

read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or

regulatory authority has reviewed the accuracy or adequacy of the information presented.

FORWARD-LOOKING STATEMENTS

This presentation contains “forward-looking statements” within the meaning of Canadian securities legislation and the United States Securities Litigation Reform Act of 1995. Forward-looking

information includes, but is not limited to, statements with respect to the future price of silver, gold and other metals and the effects thereof on the Company's mineral resources; statements

relating to the potential mineralization and geological merits of the Company's Rosario mine (the "Rosario Mine"), Membrillo prospect (‘the Membrillo propsect”), Cinco Estrellas property (the

“Cinco Estrellas property”) (collectively the “Rosario Project”), as well as the Contracuña Properties, which include the Veta Grande property (the “Veta Grande Mine”) and the Minillas mineral

property (the “Minillas Property”) and the Zacatecas District Claims (collectively the “Veta Grande Project”); the Company's expected production and recoveries for its Rosario Project and the Veta

Grande Project; expectations regarding the continuity of mineral deposits; the Company's goals regarding raising capital and developing its projects; plans for drilling; expectations regarding

environmental issues that may affect the exploration progress; project capital cost estimates; and the Company's other plans for development of its projects. Often, but not always, forward-looking

information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives

thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

This forward-looking information is based on certain assumptions that the Company believes are reasonable, including that: the Company is able to obtain any required government or other

regulatory approvals and adequate financing to complete its current and future exploration and development programs; current gold, silver and base metal prices will not materially decrease; the

proposed development of the Company's mineral projects will be viable operationally and economically and proceed as expected; the Company will not experience any material accident, labour

dispute or failure of plant or equipment; any additional financing needed by the Company will be available on reasonable terms; that planned drilling at its mineral properties will be completed and

that the results of such drilling will be sufficient to expand the existing resources at the Veta Grande Project consistent with management's expectations; that general business, economic, and

political conditions will not change in a material adverse manner; that the Company's exploration of its properties is not adversely affected by unexpected adverse weather conditions; that the

estimates of the resources at the Rosario Mine, and the Veta Grande Project obtained by the Company are within reasonable bounds of accuracy (including with respect to size, grade and

recovery); that the Company's current exploration and development programs and objectives can be achieved, the assumptions set out in the technical reports described below and the other

assumptions set out in this presentation and the Company’s public disclosure, including the Annual Information Form filed under the Company's profile at www.sedar.com (“AIF”).

The forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in

such forward-looking information, including, but not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are

realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the

interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and

uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the AIF and the Company’s other public disclosure. The Company undertakes no

obligation to update the forward-looking information, other than as required by applicable law.

Any financial outlook contained herein, as defined by applicable securities legislation, is provided for the purpose of providing information about management's current expectations and plans

relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

2 Santacruz Silver Mining Ltd. All Rights Reserved

http://www.sedar.com/

TECHNICAL INFORMATION

Technical Report for the Rosario titled "NI 43-101 Technical Report on Resources, Rosario Project, San Luis Potosi, Mexico" with an effective date of December 1, 2012 and

filed on SEDAR on December 28, 2012 (the "Rosario Report") was prepared by Gustavson Associates, LLC in Lakewood Colorado, independent consultants to the Company.

The qualified persons who prepared these reports under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects, are Donald E. Hulse P.E., SME-RM, and,

Patrick F. Daniels, SME-PM.

The Veta Grande technical report, titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico”, dated effective February 26, 2017 (the “Veta Grande Report”) was

prepared by Van Phu Bui, P. Geo. and Gary Giroux, P.Eng. of Giroux Consultants Ltd., who are all independent of the Company and each of whom is a qualified person,

pursuant to the meaning of such terms in NI 43-101.

All of the mentioned qualified persons who prepared these reports are approved QP’s under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects.

Under NI 43-101 the Qualified Person who reviewed and approved the scientific and technical information with respect to the Rosario Mine in this presentation is Mr. Donald

Hulse, who is an independent consultant for the Company. For the Veta Grande report the qualified persons are Van Phu Bui, P. Geo. of Arc Geoscience Group and Gary

Giroux, P.Eng. of Giroux Consultants Ltd.. .

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Producing Asset Veta

Grande

Zacatecas

Rosario

Mine

Focus on Mexico


Growth-oriented Mexican silver producer, listed

on TSX.V Exchange, under “SCZ”.

Experienced management team with respect to

both operating mines and making exploration

discoveries in Mexico.

Two polymetallic producing properties in Mexico,

with significant exploration potential:

Rosario Project

Veta Grande Project

Company Overview

Project District / State Project Status

Rosario Project Charcas, San Luis

Potosí In Production

Veta Grande

Project Veta Grande,

Zacatecas In Production

Company Overview

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• Arturo Préstamo - President, CEO and Director President and CEO of the Company since April 2012; Country Manager in Mexico for Starcore International Mines Ltd. from

September 2007 to October 2011; Director of Planning and Investor Relations for Grupo Famsa, SAB from March 2005 to August 2007.

• Robert (Rob) McMorran - CFO Mr. McMorran has worked in the mining industry for over 30 years. He is a Certified Professional Accountant, (CA). • Roland Löhner - Director

Senior partner and Managing Director of The Boston Consulting Group for the last 20 years. During the last 5 years he has

held the position of Managing Director for Latin America.

• Federico Villasenor - Director

Graduated with a BSc in mining and metallurgy and an MS of mineral economics and has 40 years of experience in the

mining industry, including roles with Peñoles, Grupo Mexico, Goldcorp and as director of Starcore International Mines Ltd.

• Larry Okada - Director

35 years of accounting experience, and currently a director of Revett Mining Company Inc., Eurasian Minerals, Inc. and

Forum Uranium Corp.

Board of Directors & Management

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Share Capital

(June 23 2017 Share price $0.24)

Outstanding Shares 168,295,984

Warrants 22,715,000

Stock Options 5,201,667

Fully Diluted 196,212,651

Market Capitalization $40 million

Capital Structure

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Rosario Project Project Review

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Rosario

Project

Property Location N

Charcas

Town

12Km

5Km

100 km North of San Luis Potosí, State Capital of San

Luis Potosí on Highway 57.

17Km

Rosario Project includes :

Cinco Estrellas Property (40 km from Rosario Mill)

Membrillo Property (4 km from Rosario Mill)

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Access Road

Water Pipe


Membrillo

Mine

180Km.

Charcas

IMMSA Mine

Capital City of

San Luis Potosí, S.L.P.

San Xavier

Mine

Rosario & Membrillo

Mines

Cinco Estrellas

Mine

Cinco Estrellas (1) New access ramp at the Cinco Estrellas Property from surface to Level 3 completed and only 40 meters to

access Level 5.

Improved ramp with larger dimensions for ore transportation.

Achieving steady pace; approximately 5,200 tonnes of mineralized material have been sent to Rosario mill

from May to June.

Budgeted tonnage +250 tpd.

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Note 1 The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified person" under National Instrument 43-101.”

Membrillo (San Rafael vein) (1)

Assays on chip samples returned results of trace-0.64 grams per tonne gold, trace-154.29 grams per

tonne silver, 0.03-0.94 percent lead, and 0.28-24.65 percent zinc over sampling widths of 0.5-4.20 meters.

35 meters of higher grade mineralization where 15 chip samples returned assay results of 0.28-1.44

grams per tonne gold, 55.26-770.54 grams per tonne silver, 0.12-15.92 percent lead and 4.23-20.09

percent zinc over sampling widths of 0.5-1.60 meters.

Feed from the San Rafael vein to Rosario mill has commenced.

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Note 1 “Sampling and laboratory Chips samples are collected across the back of the underground workings at 1.5 meter sample intervals and are oriented perpendicular to the vein structure. Blanks, standards and duplicate control samples were not utilized in the sampling procedure. Samples are analyzed at the Rosario laboratory, which is owned and operated by Santacruz. The Rosario laboratory is designed to serve the mining operations at the Rosario project. It is not independent of the Company and is not ISO certified. Samples are prepared by drying, crushing, rifle splitting and pulverizing 80% to less than 75 microns passing 200 mesh, Samples are analyzed by three-acid digestion and atomic absorption spectrometry. Gold and silver are further analyzed by fire assay with gravimetric finish. *Qualified persons The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified person" under National Instrument 43-101.”

Membrillo (San Jose and Santa Ana) (1)

Recently intersected the high-grade zone of the Membrillo vein at the Membrillo Prospect

Eight preliminary rock samples of muck material removed from the first 10.60 metres of the production

drift along the Membrillo vein on Level 1.5 returned assay results that range from 0.10 - 0.59 grams per

tonne gold, 8.0 - 121.0 grams per tonne silver, 0.12 - 0.40 percent lead, and 0.62 - 7.07 percent zinc. The

true thickness of the Membrillo vein in the production drift is approximately 0.40 - 0.90 meters. Systematic

chip sampling is currently in progress and assay results are pending. The extent of mineralization of this

high-grade zone is currently unknown.

Discovered two previously unknown and unexplored veins, the Santa Ana and the San Jose veins, which

are located approximately 100 and 75 meters south east respectively of and running parallel to the San

Rafael vein. (At this time no representative assay results are available on these newly discovered veins and

it is not possible to determine if they are economically viable.)

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Note 1 “Sampling and laboratory Chips samples are collected across the back of the underground workings at 1.5 meter sample intervals and are oriented perpendicular to the vein structure. Blanks, standards and duplicate control samples were not utilized in the sampling procedure. Samples are analyzed at the Rosario laboratory, which is owned and operated by Santacruz. The Rosario laboratory is designed to serve the mining operations at the Rosario project. It is not independent of the Company and is not ISO certified. Samples are prepared by drying, crushing, rifle splitting and pulverizing 80% to less than 75 microns passing 200 mesh, Samples are analyzed by three-acid digestion and atomic absorption spectrometry. Gold and silver are further analyzed by fire assay with gravimetric finish. *Qualified persons The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified person" under National Instrument 43-101.”

27

52

00 m

E

27

50

00 m

E

27

50

00 m

E

2552000mN LEGEND

MINERALIZED

STRUCTURES

MEMBRILLO SYSTEM MINERALIZED

STRUCTURES JARAL

SYSTEM

POSTMINERAL

STRUCTURES

SURFACE SAMPLE

STREAM

N

27

52

00 m

E

2552000mN

LIMIT OF INFLUENCE MENBRILLO VEIN

Membrillo Jaral- Vein System

Santacruz Silver Mining Ltd. All Rights Reserved 12

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Q1 2017 Rosario Project Results

Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)/(Pag)

Metal Prices Q1 2017: Ag $16.00, Au $1,150, Pb $0.90, Zn $1.15

Summary of Production Results 2017 Q1

Material Processed (tonnes milled) 18,723

Silver eqv. ounce production (1) 115,240

Silver production (ounces) 34,556

Silver head grade (g/t) 66

Silver recovery (%) 86%

Gold production (ounces) 195

Lead production (tonnes) 45

Zinc production (tonnes) 382

Average Head Grade (g/t Ag Eqv. 226


Veta Grande Project Project Review

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Francisco I. Madero

CAPSTONE

San Roberto

Fresnillo System

Saucito Vein

Juanicipio Vein San Carlos Vein

La Cantera Vein

La Parroquia Vein

Mala Noche Vein

San Juan Vein

Vetagrande

Guadalupe Vein

Pánuco-Plomosa Vein

Jarillas Vein

Veins Area

El Oro-El Orito

La Flor Vein

N

Zacatecas

Gral. Enrique Estrada

Víctor Rosales

L E G E N D

MINE

CITY

VEIN

Veins

(Controlled by SCZ)

Mexican Silver Belt

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2518000

2522000

2526000

2530000

2534000

2518000

2522000

2526000

2530000

2534000

74200

0

74600

0

75000

0

75400

0

75800

0

76200

0

7420

00

7460

00

7500

00

7540

00

7580

00

7620

00

N

0

M e t e r s

Graphic Scale

2,000 4,000

PANUCO AREA

VETAGRANDE AREA

(GARCIA MINE)

EL CRISTO AREA

MULEROS AREA

SAN MANUEL - SAN GIL AREA

EL ORITO AREA

CAPSTONE MINE

L E G E N D

ZACATECAS DISTRICT CLAIMS

VEINS

TOTAL AREA 8,930.63 Has.

ACTIVELY MINING AREA

MALA NOCHE VEIN

LA CANTERA VEIN

(GUADALUPANA AREA)

Predominant Control Over Zac. Mining District

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0

50

100

150

200

250

300

350

400

450

500

550

Alunite, kaolin, pyrite; often extends downward along

vein as kaolin halo around and above ore

General water table

Opal, cristobalite, anatase,

HgS, rare pyrite

Propylitized

Propylitized

Quartz (amethyst),

adularia, poss. Minor

albite

(Higher epidote)

Broad, diffuse outer limit

against fresh andesite,

latite, rhyolite

Silicification with adularia, minor albite

Adularia, minor to major albite

Near vein = feldspar-

stable “potassic”

Boiling level

Near vein =

feldspar-

destructive

Precious-metal

horizon

Base-metal

horizon

100

150

200

250

Depth

belo

w s

prin

g o

rifice,

m

Temperatura, °C

Sericite

Illite celadonite

VETAGRANDE SYSTEM Bonanza and/or Stockwork Ores

CAPSTONE COZAMIN MINE

Mining at Current Levels

Epithermal Vein Systems

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Veta Grande – Low Cost Mining Method (Chorros)

Vein

StopeMate

Cross cut

Development

Mining of Chorros material

results in reduced operating

costs

Chorros are defined as

stopes from previously mined

material

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Within the Zacatecas Mining district there are four important vein systems; Veta

Grande, Panuco, La Cantera and Mala Noche. Santacruz controls the first three of

these important vein systems, while the Mala Noche vein system is controlled by

Capstone Mining where it operates its Cozamin Mine.

In terms of concession size, Santacruz controls three to seven km of the strike

length of these vein systems.

The Pánuco vein is the structure located at the NE of the Veta Grande System and is

one of the most important vein systems because it carries good silver values

(ranging from 94 to 702 g/t) and is well defined on the surface.

In April 2016 Santacruz reached an agreement with Golden Minerals to option all of

their Zacatecas properties; all the technical information was verified and updated.

Currently we have finished a NI43-101 technical report.

Zacatecas Mining District

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Resources Panuco Project (1)

Classification Tons Ag (g/t) Au (g/t) Pb (%) Zn (%) EqAg (g/t) EqAg Oz

Inferred 2,642,000 181 0.17 0.02 0.04 192 16,342,456

Total 2,642,000 181 0.17 0.02 0.04 192 16,342, 456

Metal Price

Silver 17.00 us$/Oz

Gold 1100 us$/Oz

Pb 0.08 us$/Oz

Zn 0.08 us$/Oz


Note 1

All technical information included in this statement has been reviewed and approved by Van Phu Bui, P.Geo. of ARC Geoscience Group and Gary Giroux, P.Eng. of Giroux

Consultants ltd. who are both independent of the Company and each of which is a qualified person, pursuant to the meaning of such terms in NI 43-101.

Veta Grande Mill

Mill operating at 450 tpd.

Additional ball mill to be installed Q4 2017

800 tpd production by end of Q4 2017

Aim for 1,500 tpd during 2018


* The production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed analysis as would be included in a feasibility study. The risks associated with this decision are set forth in the "Risk Factors" section of the Company's most recent Annual Information Form, filed on SEDAR.

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Q1 2017 Veta Grande Mine Results

Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)/(Pag)

Metal Prices Q1 2017: Ag $16.00, Au $1,150, Pb $0.90, Zn $1.15

Summary of Production Results 2017 Q1

Material Processed (tonnes milled) 26,751

Silver eqv. ounce production (1) 108,728

Silver production (ounces) 57,598

Silver head grade (g/t) 117

Silver recovery (%) 57%

Gold production (ounces) 131

Lead production (tonnes) 99

Zinc production (tonnes) 177

Average Head Grade (g/t Ag Eqv. 209


Selected Drill Samples

La Ventana

2.5 Km Outcrop

* The production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and

technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed analysis as would be

included in a feasibility study. The risks associated with this decision are set forth in the "Risk Factors" section of the Company's most recent Annual Information Form, filed on SEDAR.

Corporate Goals

Corporate Goals

Project Vision

Rosario Continue to reduce costs and find efficiencies. Send Cinco

Estrellas and Membrillo mineralized material to Rosario mill to

utilize the capacity.

Veta Grande Continue ramp-up to 800 tpd by end of Q4 2017, and

continue ramp-up to 1,500 tpd during 2018.

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Santacruz Silver Mining Ltd.

Suite 880 -580 Hornby Street

Vancouver, BC, Canada V6C-3B6

Symbol: TSX-V: SCZ

FSE: 1SZ

Website: www.santacruzsilver.com

Phone: 604 569 1609

Fax: 604 684 0642

Email: [email protected]

Arturo Préstamo Elizondo: President & CEO

Neil MacRae: Director, Investor Relations

26 Santacruz Silver Mining Ltd. All Rights Reserved

Documents

June 2017 TSXV: SCZ FSE: 1SZ - Santa Cruz Silver Mining Ltd. · June 2017 TSXV: SCZ FSE: 1SZ. ... SME-RM, and, Patrick F ... Graduated with a BSc in mining and metallurgy and an MS