Gatos Silver Provides Bi-Weekly Status Report - Seite 2

On November 14, 2022, the Company announced the appointment of Ernst & Young LLP (“EY”) as the Company’s independent registered public accounting firm, effective immediately. EY will be auditing and reporting on the Company's consolidated financial statements for the financial years ended December 31, 2021 and December 31, 2022, including review of the Company’s quarterly unaudited interim financial information for 2022. The Company expects all delayed filings, including the audit of the financial statements required to be included in its annual report on Form 10-K for the year ended December 31, 2021, and the reviews of its quarterly reports on Forms 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, to be completed before the end of the first quarter of 2023. The Company expects to hold its annual shareholders’ meeting once such public reports have been filed.

As previously disclosed, in connection with its ongoing review of the mineral reserve reporting errors and its preparation of its 2021 annual financial statements and 2022 interim financial statements, the Company has identified material weaknesses in its internal controls over financial reporting. The Company has determined that the material weaknesses relate to its failures to design and maintain (i) an effective control environment commensurate with the financial reporting requirements of a public company in the United States and Canada, and (ii) effective controls over the assessment of certain key assumptions, inputs and outputs contained in its 2020 Technical Report. The Company is continuing to assess the impact of these material weaknesses and whether any other material weaknesses exist. The Company expects to provide additional information in its upcoming public reports. On January 9, 2023, the Company engaged a third-party expert to assist management in documenting key processes related to the Company’s internal control environment, designing and implementing an effective risk assessment and monitoring program to identify risks of material misstatements and ensuring that the internal controls have been appropriately designed to address and effectively monitor identified risks.