Discovery Announces 2021 Work Program & Budget at Cordero - Seite 2

2021 DRILL PLANS

We plan on completing 66,000 m of drilling in 2021 based on four drill rigs operating throughout the year. This program and the number of drill rigs may be expanded when the Company is confident that the health and safety risks related to COVID-19 can be managed effectively.

Further details on the allocation of 2021 drill metres are provided in the table below. Based on the excellent results from drilling in the South Corridor, our Phase 1 drill program has been expanded by 10,000 m to 65,000 m. Our Phase 1 drill program will be completed in 2Q 2021 and will be immediately followed by our Phase 2 drill program. The total amount and allocation of drill metres in our Phase 2 drill program is still to be determined and will be based on a detailed review this quarter of all drill results to date.

	2019	2020	2021	Total	Details
Phase 1 Drilling (metres)	6,000	39,000	20,000	65,000	Bulk-tonnage mineralization – resource definition (for 2021 resource update & PEA)
					High-grade veins – initial testing of grades & continuity
Phase 2 Drilling (metres)	-	-	46,000	To be determined	Bulk-tonnage mineralization – upgrade resource (for PFS) & resource expansion
					High-grade veins – resource definition
					Property-wide targets – initial scout drilling
Total	6,000	39,000	66,000

BALANCE SHEET

We ended 2020 with a cash balance of approximately $82 million and no debt. Our planned work program at Cordero in 2021 is budgeted at $26 million. Expenditures for the year reflect an accelerated approach to de-risking the Project while still allocating growth capital to resource expansion and property-wide exploration. We have a significant cash balance beyond our proposed 2021 budget spend that will allow us to expand our work program, if feasible within COVID-19 constraints, as well as to rapidly advance the Project to a construction decision beyond 2021.