New Drill Results Could Lead to Growth of Project Resource
Research Report

1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for National Bank, AbraSilver Resource Corp., August 19, 2024

RISKS:

Inflation and FX risk. Argentina's inflation is elevated though it tends to be offset by FX depreciation of the peso. ABRA maintains the net effect of the two given investment in USD.

Resource conversion. The latest resource for the Diablillos Project is 221 million AgEq oz at 128 g/t AgEq, though it is entirely in the M&I and Inferred categories, lacking reserves. ABRA expects to complete infill drilling to convert, and there is risk of losses of ounces and lower grades as the resources are upgraded to reserves. There is no history of historical resource to reserve conversion rates.

Development risk. Like all developers, ABRA is subject to construction risk, expected to commence by -2024. Primary risks are related to constructing on budget and on schedule and ensuring the project is in line with design parameters in the contemplated study.

Permitting risk. Full permits are expected by -2023 as ABRA commenced the Environmental Impact Statement (EIS) in 2021 and an Environmental Impact Report (EIR) to follow, with an estimated 12-month timeline. Recent mining projects in Argentina's Salta province have had streamlined permitting processes and received their EIR in less than 12 months.

RISKS:

Inflation and FX risk. Argentina's inflation is elevated though it tends to be offset by FX depreciation of the peso. ABRA maintains the net effect of the two given investment in USD.

Resource conversion. The latest resource for the Diablillos Project is 221 million AgEq oz at 128 g/t AgEq, though it is entirely in the M&I and Inferred categories, lacking reserves. ABRA expects to complete infill drilling to convert, and there is risk of losses of ounces and lower grades as the resources are upgraded to reserves. There is no history of historical resource to reserve conversion rates.

Development risk. Like all developers, ABRA is subject to construction risk, expected to commence by -2024. Primary risks are related to constructing on budget and on schedule and ensuring the project is in line with design parameters in the contemplated study.

Permitting risk. Full permits are expected by -2023 as ABRA commenced the Environmental Impact Statement (EIS) in 2021 and an Environmental Impact Report (EIR) to follow, with an estimated 12-month timeline. Recent mining projects in Argentina's Salta province have had streamlined permitting processes and received their EIR in less than 12 months.

LEGEND FOR COMPANY RELATED DISCLOSURES:

• National Bank Financial has acted as an underwriter with respect to this issuer within the past 12 months.
• National Bank Financial has provided investment banking services for this issuer within the past 12 months.
• National Bank Financial or an affiliate has managed or co-managed a public offering of securities with respect to this issuer within the past 12 months.
• National Bank Financial or an affiliate has received compensation for investment banking services from this issuer within the past 12 months.
• National Bank Financial or an affiliate has a non-investment banking services related relationship during the past 12 months.
• The issuer is a client, or was a client, of National Bank Financial or an aflJliate within the past 12 months.
• National Bank Financial or its affiliates expects to receive or intends to seek compensation for investment banking services from this issuer in the next 3 months.
• As of the end of the month immediately preceding the date of publication of this research report (or the end of the second most recent month if the publication date is less than 10 calendar days after the end of the most recent month), National Bank Financial or an affiliate beneficially own 1% or more of any class of common equity securities of this issuer.
• National Bank Financial makes a market in the securities of this issuer, at the time of this report publication.
• A partner, director, officer or research analyst involved in the preparation of this report has, during the preceding 12 months provided services to this issuer for remuneration other than normal course investment advisory or trade execution
• A research analyst, associate or any other person (or a member of their household) directly involved in preparing this report has a financial interest in the securities of this
• A partner, director, oficer, employee or agent of National Bank Financial , is an officer, director, employee of, or serves in any advisory capacity to the issuer.
• A member of the Board of Directors of National Bank Financial is also a member of the Board of Directors or is an oficer of this issuer.
• A redacted drat version of this report has been shown to the issuer for fact checking purposes and changes may have been made to the report before

GENERAL: This Report was prepared by National Bank Financial Inc. (NBF), a Canadian investment dealer, a dealer member of the Canadian Investment Regulatory Organization (CIRO) and an indirect wholly owned subsidiary of National Bank of Canada. National Bank of Canada is a public company listed on the Toronto Stock Exchange.

The particulars contained herein were obtained from sources which we believe to be reliable but are not guaranteed by us and may be incomplete and may be subject to change without notice. The information is current as of the date of this document. Neither the author nor NBF assumes any obligation to update the information or advise on further developments relating to the topics or securities discussed. The opinions expressed are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein, and nothing in this report constitutes a representation that any investment strategy or recommendation contained herein is suitable or appropriate to a recipient's individual circumstances. In all cases, investors should conduct their own investigation and analysis of such information before taking or omitting to take any action in relation to securities or markets that are analyzed in this report. The report alone is not intended to form the basis for an investment decision, or to replace any due diligence or analytical work required by you or your advisers, if needed, in making an investment decision.

The value of investments, and the income derived from them, can go down as well as up and you may not get back the amount invested. Neither past performance nor forecasts are a reliable guide to future performance. If an investment is denominated in a foreign currency, rates of exchange may have an adverse elect on the value of the investment. Investments which are illiquid may be difficult to sell or realize; it may also be diffcult to obtain reliable information about their value or the extent of the risks to which they are exposed. Certain transactions, including those involving futures, swaps, and other derivatives, give rise to substantial risk and are not suitable for all investors.

NBF makes no representation as to the proper characterization of the investments for legal, regulatory or tax purposes, or as to the ability of a particular investor to invest or transact in the investments under applicable legal restrictions. Dilerences in the legal and regulatory regimes in different jurisdictions may significantly impact the legal and regulatory risks affecting the investment sector and / or investment. It is your responsibility to assess any such differences and associated risks.

This report is for distribution only under such circumstances as may be permitted by applicable law. This report is not directed at you if NBF or any affiliate distributing this report is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you.

National Bank of Canada Financial Markets is a trade name used by National Bank Financial Inc. and National Bank of Canada Financial Inc.

CANADIAN RESIDENTS: NBF or its affiliates may engage in any trading strategies described herein for their own account or on a discretionary basis on behalf of certain clients and, as market conditions change, may amend or change investment strategy including full and complete divestment. The trading interests of NBF and its affiliates may also be contrary to any opinions expressed in this report.

NBF or its aliliates oten act as financial advisor, agent, lender or underwriter or provides trading related services for certain issuers mentioned herein and may receive remuneration for its services. NBF is a member of the Canadian Investor Protection Fund.

UK RESIDENTS: This report is a marketing document. This report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

The report is only for distribution to Eligible Counterparties and Professional Clients in the United Kingdom within the meaning of the rules of the Financial Conduct Authority (FCA). The investments contained in this report are not available to retail customers and this report is not for distribution to retail clients (within the meaning of the rules of the FCA). Persons who are retail clients should not act or rely upon the information in this report.

As required by the FCA, we have a policy in place to identify and manage the conflicts of interest which may arise in the production of non-independent research as contained and distributed in this report.

In respect of the distribution of this report to UK residents, NBF has approved the contents (including, where necessary, for the purposes of Section 21(1) of the Financial Services and Markets Act 2000). NBF is authorized and regulated by the Financial Conduct Authority with registration number FC009503 and has its registered office at 70 St. Mary Axe, London, EC3A 8BE.

U.S. RESIDENTS: With respect to the distribution of this report in the United States of America (the U.S.), National Bank of Canada Financial Inc. (NBCFI) is registered with the Securities Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). NBCFI operates pursuant to a 15 a-6 Agreement with its Canadian affiliates, NBF and National Bank of Canada. NatWealth Management (USA) Inc. (NatWealth) is a SEC-registered investment adviser.

This report has been prepared in whole or in part by research analysts employed by non-U.S. affiliates of NBCFI that are not registered as broker-dealers or investment advisers in the U.S. These non-

U.S. research analysts are not registered as associated persons of NBCFI and are not licensed or qualified as research analysts with FINRA or any other U.S. regulatory authority and, accordingly, may not be subject (among other things) to FINRA restrictions regarding communications by a research analyst with the subject company, public appearances by research analysts and trading securities held in a research analyst account. NBF is a Participating Affiliate of NatWealth, and as such each research analyst who provides services to that constitute acting as an investment adviser under U.S. law and regulation is deemed an associated person of NatWealth as part of the participating affliate regime established by SEC Staff no-action letters.

If you make “hard dollar" payments in respect of NBF research services, then such services, including this report, are provided to you by NatWealth under the U.S. Investment Advisers Act of 1940 (the Advisers Act). If you do not make “hard dollar’ payments in respect of NBF research services, then such services, including this report, are provided to you via intermediation of NBCFI under Rule 15a-6, and are not subject to the Advisers Act.

Because the views of research analysts may diler, members of NBF Group may have or may in the future issue reports that are inconsistent with this report, or that reach conclusions different from those in this report. To make further inquiry related to this report, U.S. residents should contact their NBCFI registered representative or NatWealth associated person, as applicable.

HK RESIDENTS: With respect to the distribution of this report in Hong Kong by NBC Financial Markets Asia Limited (NBCFMA) which is licensed by the Securities and Futures Commission (SFC) to conduct Type 1 (dealing in securities) and Type 3 (leveraged foreign exchange trading) regulated activities, the contents of this report are solely for informational purposes. It has not been approved by, reviewed by, verified by or filed with any regulator in Hong Kong. Nothing herein is a recommendation, advice, oler or solicitation to buy or sell a product or service, nor an official confirmation of any transaction. None of the products issuers, NBCFMA or its affiliates or other persons or entities named herein are obliged to notify you of changes to any information and none of the foregoing assume any loss sulered by you in reliance of such information.

The content of this report may contain information about investment products which are not authorized by SFC for offering to the public in Hong Kong and such information will only be available to those persons who are Professional Investors (as defined in the Securities and Futures Ordinance of Hong Kong (SFO)). If you are in any doubt as to your status you should consult a financial adviser or contact us. This material is not meant to be marketing materials and is not intended for public distribution. Please note that neither this material nor the product referred to is authorized for sale by SFC. Please refer to product prospectus for full details.

There may be conflicts of interest relating to NBCFMA or its affiliates' businesses. These activities and interests include potential multiple advisory, transactional and financial and other interests in securities and instruments that may be purchased or sold by NBCFMA or its affiliates, or in other investment vehicles which are managed by NBCFMA or its afiliates that may purchase or sell such securities and instruments.

No other entity within the National Bank of Canada group, including National Bank of Canada and National Bank Financial Inc., is licensed or registered with the SFC. Accordingly, such entities and their employees are not permitted and do not intend to: (i) carry on a business in any regulated activity in Hong Kong; (ii) hold themselves out as carrying on a business in any regulated activity in Hong Kong; or (iii) actively market their services to the Hong Kong public.

EU RESIDENTS: With respect to the distribution of this report in the member states of the European Union (EU) and the European Economic Area (EEA) by NBC Paris, the contents of this report are for information purposes only and do not constitute investment advice, investment research, financial analysis or other forms of general recommendation relating to transactions in financial instruments within the meaning of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 (MiFID 2). This report is intended only for professional investors and eligible counterparties within the meaning of MiFID 2 and its contents have not been reviewed or approved by any EU/EEA authority. NBC Paris is an investment firm authorized by the French Prudential Control and Resolution Authority (ACPR) to provide investment services in France and has passported its investment services throughout the EU/EEA under the freedom to provide services and has its registered office at 8 avenue Percier, 75008 Paris, France.

NBF is not authorized to provide investment services in the EU/EEA

COPYRIGHT: This Report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of NBF.

RESEARCH ANALYSTS: All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of the analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. The analyst responsible for the production of this report certifies that the views expressed herein reject his or her accurate personal and technical judgment at the moment of publication.

NBF compensates its research analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of NBF including Institutional Equity Sales and Trading, Retail Sales, the correspondent clearing business, and Corporate and Investment Banking. Since the revenues from these businesses vary, the funds for research compensation vary. No one business line has a greater influence than any other for research analyst compensation.

Ratings And What They Mean: PRIMARY STOCK RATING: NBF has a three-tiered rating system that is relative to the coverage universe of the particular analyst. Here is a brief description of each:

Outperform (OP) —The stock is expected to outperform the analyst's coverage universe over the next 12 months; Sector Perform (SP) — The stock is projected to perform in line with the sector over the next 12 months; Underperform (UP) — The stock is expected to underperform the sector over the next 12 months. SECONDARY STOCK RATING: Under Review (UR) - Our analyst has withdrawn the rating because of insufficient information and is awaiting more information and/or clarification; Tender (T) - Our analyst is recommending that investors tender to a specific offering for

the company's stock; Restricted (R) - Because of ongoing investment banking transactions or because of other circumstances, NBF policy and/or laws or regulations preclude our analyst from rating a company's stock. INDUSTRY RATING: NBF has an Industry Weighting system that reflects the view of our Economics & Strategy Group, using its sector rotation strategy. The three-tiered system rates industries as Overweight, Market Weight and Underweight, depending on the sector's projected performance against broader market averages over the next 12 months. RISK RATING: As of

June 30, 2020, National Bank Financial discontinued its Below Average, Average and Above Average risk ratings. We continue to use the Speculative risk rating which reflects higher financial and/or operational risk.

DISSEMINATION POLICY: Please click on this link to access NBF's Research Dissemination Policy.

COMPANY RELATED DISCLOSURES: Please click on this link to access Company R ated Disclosures

AbraSilver Resource Corp. (ABRA:TSX.V; ABBRF:OTCQX) released more results of drilling in the JAC and Oculto zones at its Diablillos silver-gold project in Argentina, reported National Bank of Canada Analyst Don DeMarco in an Aug. 19 research note.

"JAC stepouts hint at resource accretion," DeMarco wrote.

108% Return on Investment

On the news, the National Bank reiterated its CA$5 per share target price on AbraSilver, trading at the time of the report at about CA$2.40 per share, noted DeMarco. From the current price, the return to target is 108%.

AbraSilver remains rated Outperform.

"Our thesis is supported by a large silver-gold Measured & Indicated resource base, near-surface high-grade silver in the JAC deposit, prospective exploration upside and heightened mergers and acquisitions appeal," DeMarco wrote.

Continuity of Mineralization Noted

AbraSilver reported data from six holes, three drilled in the JAC zone, three in the Oculto zone, all part of the company's phase four, 20,000 meter (20,000m) exploration program at Diablillos.

The highlight intercepts, coming from two stepout holes, are:

• 277 grams per ton silver equivalent (277 g/t Ag eq) over 32m (hole DDH-24-018 in JAC South)
• 110 g/t Ag eq over 54m (hole DDH-24-016 in JAC)

Stepout drilling in the JAC zone confirms near-surface continuity, particularly toward the southern and western extensions, DeMarco pointed out, and this suggests the resource could be expanded.

The average grade of these newly released data, as calculated by the National Bank of Canda, is 132 g/t Ag eq over 19m, noted DeMarco. This is lower than the average grade in the financial institution's database, of 193 g/t Ag eq, despite similar widths.

"Additional drilling [is] planned," reported DeMarco.

What to Watch For

DeMarco listed the upcoming catalysts for AbraSilver and its projects.

As for Diablillos, the drill campaign and geophysical surveys now underway will be carried through to completion and followed by release of their respective results.

Moreover, a definitive feasibility study, receipt of construction permits and construction design are on track for completion by year-end 2025. Construction would follow in 2026.

As for AbraSilver's La Coipita copper porphyry project, also in Argentina, drill results are due out this year.