Boston Beer Company
Annual Report 2023

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TSX: SAM | FK:V4JA “Nothing is so important or so urgent that it cannot be done safely” Capturing our Core Values on a Mural outside the San Martin Mine 2023 Annual Report A Year Committed to Miners' Safety and Environmental Stewardship Table of Contents 3 5 7 A Letter from CEO Our Mission, Our Values Safety and Environmental Stewardship 13 A Letter from COO 15 Operational Overview 19 A Letter from CFO 21 By the Numbers 23 A Letter from President 25 Exploration Overview: A Promising Opportunity: El Creston Deposit Ajax Molybdenum Project Kimoukro Gold Project 31 The Value Proposition A Letter From The CEO Adaptability through the Strength and Commitment of our Team The team at Starcore extends our heartfelt gratitude to our shareholders for their unwavering support during the 2023 operating year. This year presented a unique set of challenges: a acquisition adds another opportunity to create difficult mining operating environment, a demanding shareholder value outside of our Mexican assets. regulatory landscape in Mexico, and an increased demand on compliance regulations from the Canadian Despite the uncertainties we confront, my steadfast stock exchanges. belief endures: gold remains unwavering. Gold continues to perform as a beneficial asset during these turbulent Amidst the trials encountered, we successfully achieved times and the Company's focus remains steadfast on several notable milestones over the past year. A expanding our international footprint and leveraging our highlight was our participation in the United Nations shareholder's investments during a challenging yet review assessing the sustainability of the mining promising year ahead. industry in Mexico—an endeavor thoroughly explored in our Chief Operating Officer's detailed report to our The year ahead presents fragilities in the political shareholders. economical and social frameworks which we once defined as normal. Our first priority during these difficult Additionally, we addressed health concerns within our times is to remain focused on increasing production kitchen facilities at the mine. A comprehensive overhaul results while using safety, health and environmental and upgrade were undertaken, focusing not only on consciousness as the anchor to our transparent physical improvements but also on fostering a culture of communications model. health awareness and best practices among our workforce. Our guiding principles of focusing on the Our focus on shareholder value creation has led our health and wellness of our employees translates directly company to become more diversified and sustainable in into corporate and social benefits that include the face of challenge and a bold example of a Canadian heightened productivity, reduce downtime, and fewer mining company operating abroad on behalf of all accidents. A recipe for success. stakeholders. Adapting to the fluctuations in regulatory frameworks, With warm regards, we strategically adjusted our corporate approach to minimize geopolitical risks. The inclusion of the Kimoukro gold project on the Ivory Coast in Africa Robert Eadie exemplifies our commitment to diversifying our risk Robert Eadie, Chief Executive Officer profile on behalf of shareholders. This strategic “What profit do we have if we gain the whole world and lose or forfeit our own souls?” Gary Kowalski The Souls of Animals 3 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 4 Our Mission To create significant shareholder value for our shareholders by remaining a leader in the international mining community through the combination of social and environmental practices to a proven mineral production and exploration model. Our Values Act with Integrity Engage Openly We are committed to being honest, straightforward, and We believe that clear, comprehensive disclosure, high accountable in our business practices. standards of corporate governance, and ethical business practices are the only ways to do business. Operate Safely Enrich Lives People come first. We implement industry best We aim to create real, lasting, and tangible benefits for practices, adhere to all safety regulations, and have the people whose lives our operations touch. strict management systems in place to promote a culture of safety wherever we operate. Shareholders Behave Responsibly Our shareholders are the foundation of our financial We strive to demonstrate that mining can be done stability and strength. We actively seek opportunities in responsibly. We do this by emphasizing environmental our work to improve and enhance shareholder return stewardship at every stage of the project life cycle. and value. Quality & Innovation Whenever possible, we go beyond what’s merely expected of us to achieve something better. We are problem solvers: building on the practices of the past, anticipating and embracing the challenges of the future and applying existing technologies in new ways to get the most out of our resources. 5 TSX:SAM | Annual Report 2023 TSX:SAM | Annual Report 2023 6 The San Martin School Mine Day Safety and Environmental Stewardship Setting the Standard in Mining ESG Starcore's commitment to safety and environmental stewardship is at the heart of our business operations. Our primary objective is to guarantee the safety and well-being of our employees every day, while also fostering trust within the communities that rely on us due to our exemplary environmental and social performance. Our Top Priority is Safety Safety is at the heart of everything we do. Our goal is to ensure that every employee goes home safe and healthy every day. We achieve this through rigorous training, safety measures, and a company-wide commitment to fostering a safety-first mindset. We understand the significance of community engagement and proactive safety measures. In June, we took part in two safety training programs for the kindergarten children in the community of San Martin. The programs included essential components such as fire extinguisher usage and evacuation practices, empowering the young minds with crucial knowledge on how to respond effectively in emergency situations. Furthermore, we conducted first aid training sessions covering a spectrum of critical skills, including addressing hemorrhages, wounds, burns, fractures, and CPR techniques. By extending our safety outreach beyond the confines of our operations and investing in the well-being of the local community, we aim to foster a culture of safety from an early age, ensuring that these fundamental skills become embedded in the everyday lives of the residents of San Martin. 7 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 8 Environmental Stewardship: Energy Efficiency: We recognize the critical importance of environmental stewardship in our industry. Our commitment to sustainability We continually work to improve our energy efficiency, reduce greenhouse gas emissions, and explore alternative encompasses the responsible management of natural resources, minimizing our environmental footprint, and actively energy sources to power our operations. participating in conservation efforts. • We achieved an 11% reduction in energy consumption resulting in a savings of 154.37 KW. • At the San Martin Mine this year, the key energy efficiency measures involved optimizing chemical treatment processes by disabling specific equipment within the zone. Furthermore, we disengaged other equipment in Key Environmental Initiatives Utilizing the "Dry Stack Tailings" technique offers areas when unoccupied. Our goal is to implement responsible mining practices through prioritizing planning, quality control and good • More of the process solutions are recycled within management of our resource extraction business. the plant numerous benefits for the local ecosystem: • Water consumption is reduced by 80-85% as well as Acknowledging our responsibility as stewards of the a reduction in windborne dust natural environment, we have in place an innovative approach to managing our tailings material. The Company applies a dry stack tailing method that • • Risk of discharging harmful solutions to the environment is reduced process effectively removes the harmful contents and surface tailings disposal systems, while creating a moisture allowing the tailings to be "stacked" and re- much more stable impoundment geo-technically vegetated. • • Groundwater contamination through seepage is reduced removes cyanide and harmful chemicals that are used in land area used for tailings, as dry stack facilities the process to separate gold from other material. This require a smaller footprint compared to other We donated 500+ trees. Reduces the impact on the environment in terms of conservation projects. Biodiversity Conservation: We engage in initiatives to protect and preserve local biodiversity by supporting habitat restoration and • • 300 to the community, civil associations, and employees 200 trees to the “Lets Save Cerro Grande” Association in the nearby municipality of Cadereyta Land is re-vegetated with greater efficiency and de Montes. ease • The trees will be utilized in reforestation efforts in Cerro Grande, with the goal of alleviating the impacts of climate change within the municipality. 9 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 10 Safety and Environmental Stewardship Nursery and Greenhouse Production The San Martin Mine prioritizes the surrounding environment through reforestation initiatives. These efforts involve replenishing the dry tailing stack, providing sustenance for the workforce, and reintroducing native plant species to the area. Our nursery specializes in cultivating plants essential for reforestation efforts, contributing to the restoration of ecosystems. Additionally, our greenhouse is dedicated to the cultivation of a variety of vegetables and herbs, which are harvested for use in San Martin’s dining room to provide fresh and sustainably sourced produce for our employees. This dual focus on reforestation and sustainable agriculture highlights our commitment to environmental conservation and promoting self-sufficiency within our community. To ensure a consistent supply of In 2023, insufficient rainfall A steady supply of lettuce, chard, plants, the production process is presented a significant challenge mint, cucumber, and tomato is carefully planned based on the for reforestation efforts in San consistently produced to meet the number of plants replanted each Martin. As a result, the plants demand within San Martin’s dining year. Our aim is to always maintain intended for reforestation were facility. These fresh and flavorful an approximate stock of 17,000 unable to be planted during the vegetables are grown on-site and plants in the nursery. This year. However, to ensure their delivered directly to our mine’s systematic approach allows for preservation and well-being, kitchen. By doing so the mine efficient management and ensures necessary measures were taken to ensures a reliable source of an adequate inventory of plants for maintain and care for the plants nutritious produce for consumption, future restoration efforts. until next year when reforestation promoting a healthy and well- can be resumed. balanced diet among its employees. 2023 Green Production Profile: Lettuce | 450 pieces Chard | 65 bunch Mint | 50 bunch Cucumber | 45 kg Tomato | 280 kg Our commitment to safety and environmental stewardship is not just a corporate goal; it's a way of life. We firmly believe that responsible mining practices, a strong safety culture, and active engagement with local communities are essential for the long-term success of our Company and the well-being of the planet. We are proud of our achievements in these areas, but we also recognize that there is always room for improvement. We remain dedicated to setting new standards in safety, sustainability, and community engagement in the mining industry. 11 TSX:SAM | Annual Report 2023 TSX:SAM | Annual Report 2023 12 A Letter From The COO Maximizing Efficiency and Sustainability It is clear that there is no path or future for Starcore International Mines and for the mining industry in Mexico or worldwide if mining is not sustainable. Allow me to summarize the objectives of “Agenda 2030” and how Starcore has been working to meet those challenges. 1. End of poverty 2. Zero hunger: In support of objectives 1 and 2, we are driven to have our mine operations endure for many more years as we continuously search for and are open to options that are available for growth in the region where we currently operate. 3. Health and well-being: A recent project initiated by our CEO is aimed to improve nutrition and medical care for all our employees and will eventually be extended to the communities surrounding San Martin. 4. Education and Quality: For a number of years now, we have implemented educational programs for seniors in our community and have collaborated with schools for programs and events for our children and young people. 5. Gender equality: Our female workforce continues to grow year after year and salaries depend on the position without distinction of gender. In 2022 and 2023, we had the privilege of participating in interest and awareness in being proactive with our 6. Clean water and sanitation: We support our community with specialized personnel and informative presentations a pilot project carried out by the United Nations and the environment. We were encouraged to find new ways to on how to make good use of water and waste management. Secretariat of Economy of Mexico to evaluate the level improve existing practices in our mining operations as 7. Sufficient and clean energy: We have a project on the horizon for the use of solar cells and clean energy storage. of sustainability of the mining industry in Mexico. Five we moved our efforts to achieve sustainability, guided by 8. Decent work and economic growth: Our staff earns above average salaries for the region and undergoes training to different companies were invited to participate, one of the goals and objectives encompassed by “Agenda improve their skills and aspire to a better economic position. which was Compañia Minera Peña de Bernal, Starcore’s 2030”. wholly-owned subsidiary that owns the San Martín Mine 9. Innovation and Infrastructure: We are a company that always looks for ways to improve work processes and we utilize cutting-edge equipment for our operations. located in Querétaro, Mexico. Clearly, for our San Martin operations to be active and 10. Reduction of inequalities: We believe that quality education is the best way to close the gap that currently exists, successful in this global effort, we need to focus on and and it is what we must work on. Forming the bases of this pilot test evaluation were the develop more responsible and inclusive mining 11. Sustainable Communities: We are aware that the mineral we extract is a non-renewable resource. We are 17 objectives contained in “Agenda 2030”, the document practices. approved by the 70th General Assembly of the United evaluating projects that we can develop to maintain the current standard of living for our employees, including opportunities in agribusiness and service industries. Nations during the Sustainable Development Summit Yes, we still have a long way to go and a lot more to 12. Responsible production and consumption: We strive to provide a working environment free of accidents for our held in New York in 2015. learn, but what is most important is that we have already started, and our consciousness has changed and has workers. In our mine, we have strict safely controls, under the motto “Nothing is so important or so urgent that cannot be done safely.” Although the results of the evaluation have not yet been been redirected towards the “Agenda 2030” goals and Water utilized for our mining operations is re-used, as we are filtering the tailings and recovering 80 percent of the received, the sustainability evaluation sparked our objectives. water used. 13. Climate Action 14. Underwater Life 15. Life of Terrestrial Ecosystems: In addressing objectives 13, 14 and 15: We fully acknowledge the urgency of reducing, even eliminating pollution in our environment. The management of garbage and industrial waste that end up in the rivers and seas of our country must begin with us, individually and collectively. 16. Peace, justice, and solid institutions: It is key in a country like Mexico to be active in the struggle to avoid corruption, which is the great cancer of this country. 17. Alliances to achieve objectives: This is a topic that is undoubtedly key to achieving any goal. The best example I can present is what we are doing with small miners in the region where we are looking for alliances to extend the life of our operations, and at the same time support them so that they can undertake their own mining projects or diversify. In summary, “Agenda 2030” is the agenda not only for the mining industry or for Starcore, but also the Agenda for everyone. We know what have to do, for ourselves and for our families to have a better world to live in. We thank you for your continued support. Salvador Garcia Salvador Garcia, Chief Operating Officer TSX:SAM | Annual Report 2023 14 San Martin Operational Overview: 2023 The San Martin Mine, located approximately 50 km east of the City of Querétaro, State of Querétaro, Mexico, consists of mining concessions covering 13,077 hectares and includes seven underground mining units and four units under exploration. Luismin (now “Goldcorp Mexico”) operated the mine from 1993 to January, 2007, when it was purchased by the Company. The Company expects to continue to operate the mine based on the current expected conversion of known resources, and exploration is able to maintain proven and probable reserves replacing those mined with new reserves, such that the total resource remains relatively constant from year to year. “We have been investigating small mines near San Martin to utilize additional unused capacity of our plant.” Salvador Garcia, Chief Operating Officer 15 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 16 San Martin Mine Exploration The cornerstone of this year's strategy was the the San Martin mine life. unveiling of a new geological model that is poised to define exploration targets that will charter the Adapting to market dynamics and acknowledging the dip underground pursuit for the renewal mineral resources in gold and silver grades this year, the Company has and reserves. taken measured steps to conserve resources and reduce costs. Temporarily halting drilling exploration by The exploration budget for 2023 was $2million with contractors allowed for the completion of the new $1million being allocated to the San Martin Mine and the geological model. External geologists joined the internal other portion towards our portfolio of projects in Mexico. team, leveraging new software and structural geology The $1 million allocated to San Martin amount was expertise to refine the geological model. With this, strategically apportioned to three distinct areas, exploration has resumed on identified targets. encompassing the extension of mineralization exploration towards the northern areas of Cerro Azul, as In addition to exploration activities, the Company has well as ventures into the Eastern and South Western pursued utilizing the plant's full capacity by strategically directions, based on new geological interpretations of exploring additional mineral sources with nearby mines. the San Martin Breccia deposit. The San Martin team remains committed to achieving The release of an updated NI 43-101 report for the San targets and focusing on efficiency and growth. The Martin Mine July 18, 2022 for the reserves and development of high-grade zones nears completion, resources exhibits a continued commitment to ensuring reflecting the mine's stable production. Emphasis is the mine's prolonged growth and vitality. Efforts have placed on a proven team, pursuing growth through been focused on resources growth at the Area 28 and strategic mergers or acquisitions, and exploring Area 33 ore bodies, complemented by ongoing activities, innovative processes. These initiatives collectively such as underground mine workings and metallurgical contributing towards increasing reserves, extending the test work studies. These initiatives are aimed to convert Life of Mine, and generating profitable ounces. mineral resources to reserves, foretelling an extension of “We expect the new geological model to define the exploration targets that we will use to continue underground exploration.” Robert Eadie, Chief Executive Officer San Martin Operational Overview: 2023 The year 2023 unfolded with a strategic focus on exploration, cost reduction, and expansion initiatives. San Martin Mine Production Despite facing challenges, the San Martin Mine depreciating approximately 15% against the Mexican maintained a solid production of 9968 equivalent gold peso compared to the prior year, the mine remained ounces, showcasing resilience in the face of lower ore persistent in its commitment to operational excellence. grades and recoveries. The mine's development remains aligned with the Although operating cash costs experienced an increase current production budget, allowing for variations based to US$1,536/EqOz from US$1,239/EqOz, this was a on mine conditions and production tonnage achieved. result of mitigating factors, including lower metal The focus remains on proper development and mining to production, and increased per ton costs. In response to ensure a consistent supply of ore in line with planned rising expenses, the mine demonstrated adaptability by production capacity and ore grades. Continuous implementing strategic cost-cutting measures. The assessments by management provide flexibility for upward cost trend was influenced by factors such as potential changes to the plan, including adjustments to higher input costs for labor, electricity, and fuel, as well production and capital investments. The San Martin as increased development costs per meter. Despite a Mine remains dedicated to overcoming challenges and less favorable exchange rate, with the US dollar achieving sustainable growth. 17 Starcore International Mines Ltd. Maximizing Efficiency and Sustainability $1,807/oz Gold A Letter From The CFO Redefining Long-term Objectives We had a very challenging year, which is reflected in lower earnings from mining operations, net income and cash flow, which required that we re-evaluate our priorities and redefine our long- term objectives. While we continue to invest into San Martin, El Creston and Ajax to build shareholder value from existing assets held by the company, the inevitable mine life and the need to plan for our future has pushed us to think outside the current model and explore other opportunities near our infrastructure and also outside of Mexico, especially given the objectionable actions of the current government towards mining. This past year we continued to explore our existing properties to exploit economic grade ore which will bring positive cash flow again, as we experienced in the previous 2 fiscal years. Our production averaged 830 equivalent ounces per month at slightly lower ore grades than the previous year and at a cash cost of US$67 per tonne, or US$1,535 per ounce. Our all-in sustaining costs (“AISC”), however, was higher at US$1,947 per ounce, compared to US$1,601 in the prior year, while our average metal prices realized in the year were US$1,807 per ounce for gold and US$21 per ounce for silver resulting in negative cash flow from operations of over $2.3million. As a result, our working capital decreased to $8.5million from $9.1million last year, and with no outstanding debt. Overall, the Company reported a loss of $5.3million, or $0.10 per share, compared to income of $2.4million in the prior year, or $0.05 per share. We reported EBITDA of negative -$1.3million, compared to $4.8million in the prior year which also included a $1.6million gain on sale of the Scottie claims royalty. Management is focused on improving ore grade and production as well as reducing Pellentesque fermentum. Mauris sit amet ligula costs in all areas of mining and administration in order ut tellus gravida mattis. Vestibulum ante ipsum to return to profitable operations. primis in faucibus orci luctus et ultrices posuere In the 2024 fiscal year, we have identified projects outside of our minesite, within Mexico and outside of North America, in the Ivory Coast, Africa with a view to acquire mining projects that will bring future success to the Company and, of course, its shareholders. We also understand that this re-evaluation requires that we fully understand the importance of sustainable mining practices as we always strive for best practices in all our actions towards the environment, our stakeholders and the community. Gary Arca Gary Arca, Chief Financial Officer 19 Starcore International Mines Ltd. $21/oz Silver TSX:SAM | Annual Report 2023 20 Starcore International Mines by the Numbers 154.37 Killowatts saved 17,000 Plants maintained in the Nursery US$1,947EqOz AISC for the year ended April 30, 2023 $8.5M Working Capital at April 30, 2023 $22.9M Gold and silver sales for the year ended April 30, 2023 48.6% Silver Recovery 9,968Oz of equivalent gold production 500+ Trees Donated 87.1% Gold Recovery $67 US dollars cost per tonne milled 227.8 Thousands of tonnes Milled for the year ended April 30, 2023 1.47 g/t Gold Grade 14.0 g/t Silver Grade 2M Exploration Budget for 2023 9,166 Exploration meters drilled at the San Martin Mine US$1,535EqOz Mine Operating Cash Costs 21 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 22 Our relationship with the ejidos has always been built on In conclusion, Starcore International Mines is committed trust and mutual respect. We engage in open and to responsible and sustainable gold mining, as well as transparent dialogues with the ejido representatives to maintaining a strong and positive relationship with the address concerns, share information, and work together local community and ejidos in San Martin, Queretaro. We on community development projects. We take pride in will continue to work closely with all stakeholders to the fact that we have always adhered to all obligations ensure that our mining operations contribute to the and agreements with the ejidos, respecting their land social, economic, and environmental well-being of the rights and heritage. It is our goal to ensure that the region, in a sustainable way. ejidos benefit from our operations and share in the prosperity that responsible mining can bring. Pierre Alarie Pierre Alarie, President A Letter From The President Sustainable Mining and Community Growth As the President of Starcore International Mines, I want to share with you our commitment to sustainable gold mining and the importance we place on fostering positive community and ejido relationships surrounding our operations in San Martin, in the state of Querétaro, Mexico. We recognize that sustainable gold mining is not merely local community through various initiatives, including job a business endeavor, but also a shared responsibility to creation, educational opportunities, infrastructure protect the environment, support the local community, development, and summer camps for the children of our and contribute to the social and economic development workforce. We prioritize hiring from within the of the region. Our company has a long-standing history community whenever possible, creating stable of working collaboratively with our workforce, the employment opportunities and contributing to the communities and ejidos surrounding our mining economic growth of the region. Additionally, we have operations, and we are firmly committed to upholding established educational programs to support the youth this partnership. in the region. One of the cornerstones of our approach to sustainable Starcore International Mines is deeply committed to mining is our dedication to environmental stewardship. promoting the well-being of its workforce by We have implemented advanced mining techniques and implementing a multifaceted approach to better health. technology to minimize our environmental footprint. This In an effort to prioritize the physical and mental health of includes water management systems to ensure its employees, the company has taken significant steps, responsible water usage, dust control measures, and air including the employment of a doctor who will regularly quality monitoring to reduce any negative impact on the monitor and assess the health of the workforce. This environment. Our commitment to sustainable practices initiative ensures preventive care for any emerging extends to all facets of our operations, from exploration health concerns. Furthermore, Starcore International to extraction. We prioritize responsible land use and Mines has revamped the menu at Cafe Bernal, the mine's have a comprehensive reclamation plan to ensure the cafeteria, to offer a healthier and more balanced land is returned to a state as close to its natural selection of meals and snacks. This culinary condition as possible once mining activities cease. transformation aims to provide nutritious options that support the vitality and productivity of its employees. Equally important to us is the well-being of the These combined efforts underline the company's communities and ejidos in the vicinity of our mining commitment to fostering a workplace culture that places operations. We firmly believe that a thriving local health and well-being at the forefront, ensuring a happier community is essential for the long-term success of our and more productive workforce. operations. To that end, we actively engage with the 23 Starcore International Mines Ltd. Exploration Overview A Promising Opportunity: El Creston Deposit Ancient metallurgical wisdom, encapsulated in the Greek approximately 100 km northwest of Hermosillo the State term 'molybdos,' showcased molybdenum's early Capital, consists of 9 mining claims totalling 11,462 prominence, evidenced by its presence in a 14th-century hectares in size. The property is readily accessible through Japanese sword. From Carl Wilhelm Scheele's a combination of paved and gravel roads. Opodepe, a identification in 1768 to its industrial breakthrough in the small village, is 6 km to the northeast. late 19th century, Molybdenum evolved into a vital alloy, particularly in the tumultuous times of World War I. The El Creston Property hosts a 5.5 km long x up to 1.5 km Climax deposit's discovery in 1918 marked a pivotal wide trend of hydrothermal alteration in which several moment, and post-war innovations expanded zones of molybdenum +/- copper +/- silver mineralization molybdenum's applications. occurs. At the El Creston Main/Red Hill Zone a significant resource of molybdenum and copper has been outlined. In Fast forward to today, the search for sustainable energy addition, there are other zones, Alejandra, A-37, Red Hill storage, a trade war leading to increased nearshoring West, Red Hill Deep and the West Copper, with potential to activity and supply chain issues, and our advanced stage host significant resources of molybdenum and/or copper. exploration project El Creston continues to anchor the The recent rise in Molybdenum prices has encouraged Company’s portfolio as a strategic asset, and a potential Starcore to reinitiate its exploration efforts and planning on opportunity to create significant shareholder value. the El Creston deposit by engaging the SRK group to The El Creston deposit is a 100% owned porphyry stage exploration project. The results are summarized in Molybdenum Copper deposit in Sonora, Mexico. The the table below but are best read along with the technical property is in the north central Sonora state Mexico, report found on the company website: update the 43-101 report on the 100% owned advanced Table 1.1: Mineral Resource Statement at 0.045% Molybdenum Equivalent*, El Creston Molybdenum Project, Sonora Mexico, SRK Consulting, 30 September 2022 Category Open Pit** Measured Indicated Measured Plus Indicated Inferred Quality (Mt) 56.3 142.2 198.5 Mo (%) 0.076 0.067 0.069 Grade Metal Cu (%) 0.04 0.08 0.07 Mo (Mlb) 94.3 210.0 304.4 Cu (Mlb) 49.7 250.8 300.5 Notes: * Mineral resources are reported in relation to a conceptual pit shell. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate. ** Open pit mineral resources are reported at a cut-off grade of 0.045% Mo EQ. Cut-off grades are based on a price of US$9.93 per lb of molybdenum and US$3.50 for copper, recoveries of 88% for molybdenum and 84% for copper were applied. The recommendations outlined in the Technical Report are Starcore will continue to pursue low risk, high reward aimed at confirming the presence of a copper porphyry at opportunities such as the acquisition and exploration of depth. Exploration initiatives taken by the Company could the El Creston deposit to create sustainable shareholder encompass various activities such as surveys, geophysical value and capture the opportunities unveiled in magnetometry studies, and the development of new management’s vision for the future of the Company. geological models utilizing existing drillhole data. “We have always viewed El Creston as an extremely valuable asset, given that it is a copper-moly project,” said Robert Eadie, Starcore’s CEO. “We are happy that the [43-101] report has been updated and we are now able to advance the project and share SRK Consulting’s findings with our shareholders.” 25 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 TSX:SAM | Annual Report 2023 26 26 Exploration Overview Ajax Molybdenum Project “Our approach to exploration is grounded in foresight, aligning with our commitment to unlocking value for our shareholders. The Ajax Property, situated in the heart of the Golden Triangle, represents a promising frontier in our pursuit of sustainable growth.” Robert Eadie, Chief Executive Officer The Ajax property was acquired through the purchase exploration method penetrates ground cover, aiding in agreement of El Creston. The property is another the delineation of bedrock formations, geological potential source of value creation and represents the structures, and potential mineralizing faults. The results Company's commitment to strategic growth and the have identified multiple targets for continued creation of shareholder value. exploration, complementing the detailed geological mapping efforts. Situated 12 kilometers north of the tidewater port of Alice Arm in northwestern B.C., the Ajax Property is In collaboration with the British Columbia Geological 100% owned by Starcore. Positioned within the globally Survey, secured drill core from previous programs at recognized "Golden Triangle," known for its rich mineral Ajax was sampled for critical mineral assays, fluid endowment and past-producing mines, the property inclusion, and age of mineralization work. Anticipated spans 17 square kilometers. It features a large porphyry results from this collaboration are expected to be molybdenum developed prospect, subject to thorough disclosed in early 2024. testing through 48 drill holes since the mid-1960s. The Golden Triangle, including the vicinity of the Ajax Project, continues to attract attention, with two Operating within a safe, mining-friendly, and politically significant exploration programs within 12 and 16 stable jurisdiction, the Ajax Property is located within kilometers of Ajax. This underscores the region's appeal proximity (1-3 km) of the Triassic-Jurassic contact, to major mining companies and substantial investors. referred to as the Red Line in the region. This geological Starcore remains committed to data collection and feature is associated with several mineralized systems scientific interpretations of the Ajax Property, focusing within the Golden Triangle. Assay samples collected on uncovering additional mineralized quartz veins from the property indicate notable values in silver, peripheral to the porphyry system. elevated gold, copper, lead, zinc, and anomalous cobalt and tungsten. These veins, with historical significance dating back to the mid-1920s, present an attractive prospect for precious metals mineralization in the area. The Company maintains a cautiously optimistic outlook as it navigates As part of the 2023 exploration program, Starcore the exploration landscape, recognizing the Ajax engaged Auracle Geospatial Science Inc. to conduct a Property's potential contribution to long-term subsurface structural interpretation and an apparent shareholder value. resistivity study using satellite-borne radar imaging. This 27 TSX:SAM | Annual Report 2023 TSX:SAM | Annual Report 2023 28 Exploration Overview Kimoukro Gold Project Deal Overview: Following the acquisition, Starcore assumes all rights and obligations stipulated in a Mineral Property Option Agreement between EU Gold Mining Inc. and K Mining SARL, an Ivorian gold exploration company based in Abidjan. This agreement includes four gold exploration permit applications covering 830 km², with the Kimoukro Project being a focal point spanning 14.48 km². The geological context of the area is characterized by a Paleoproterozoic greenstone belt, integral to the Birimian orogeny of West Africa. Geological Insights: The Fetekro-Oumé greenstone belt, stretching over 170 km in a north-northeast-south-southwest direction, is host to various gold deposits and prospects. The geological features include shear-hosted lode gold, sheeted veins, intrusion-related veins, and significant supergene mineralization in regolite and soil. The Toumodi prospect, located 15 km west of the property, and the upcoming Lafigue mine of Endeavour Mining, with 2.5-million-ounce Au reserves, exemplify the active exploration and mining in the northeastern portion of the belt. The Kimoukro Project, still largely unexplored and untested, presents compelling highlights from available information: • Local Geology: Similar to nearby mineralized sites, major contacts between greenstone and gneiss, along with syn- to post-deformation intrusive bodies and related brittle-ductile structures, offer high prospects for mineralization. • Gold Anomaly Zone: A 0.5 square km-wide gold anomaly zone in soil, exceeding 50 parts per billion Au, is confirmed in the central part of the property. This anomaly is part of a broader zone stretching over six km from the Kokumbo area, remaining open to the north and west. • Artisanal Mining Activity: Consolidated artisanal mining activities confirm widespread supergene mineralization. Several mineralized veins, primarily composed of quartz-albite-carbonate with observed tiny sulphides and free gold, are being actively worked by artisanal miners. These veins cut across different volcano-sedimentary units and are concentrated over the granite-granodiorite body in the central part of the property. Future Work Plans: In line with the promising potential for an economic gold discovery, Starcore is committed to continuing the exploration plan on the Kimoukro Project. The recent Technical Report, dated July 16, 2023, recommends a structured three-year exploration program organized into phases. This program will build on previous exploration activities, utilizing methodologies such as remote sensing imagery, soil and rock sampling, optical and electronic microscope analyses, and geophysical surveys. The focus will be on uncovering additional mineralized zones and refining the understanding of the property's geological characteristics. As Starcore enters this new phase of mining operations with the Kimoukro Project, the company remains dedicated to its strategy of creating sustainable value for shareholders through diversified and well-managed exploration initiatives. In a strategic move to diversify its mining operations and create further shareholder value, Starcore International Mines Ltd. completed the acquisition of EU Gold Mining Inc. in August 2023. This acquisition includes the Kimoukro Project, a promising early- stage exploration endeavor covering 14.48 km² situated in the Lac region of central Ivory Coast, West Africa. The project holds significant potential for an economic gold discovery and is strategically positioned approximately 40 km south of the capital, Yamoussoukro, within the Fetekro-Oumé Greenstone Belt, a major gold-producing region in the Ivory Coast. 29 Starcore International Mines Ltd. TSX:SAM | Annual Report 2023 TSX:SAM | Annual Report 2023 30 30 Starcore’s Value Proposition Experienced Management We have assembled a strategic blend of experienced professionals and seasoned veterans in fields such as: Corporate Finance, International Law, Engineering and Geology. Collectively, Starcore’s management brings over 100 years of experience to the business of mineral exploration and development. Corporate Social Responsibility Our commitment ensures responsible mining practices, environmental stewardship, and positive contributions to the communities in which we operate, fostering long- term stakeholder trust. Focused on Shareholder Value Creation We are committed to creating value for our shareholders through a combination of operational excellence, strategic exploration, transparent communication, responsible practices, and environmental stewardship. TSX:SAM | Annual Report 2023 32 TSX: SAM | FK:V4JA 

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