The Company also wishes to advise that its resource update, originally scheduled for release at the end of this month, has been delayed slightly due to the inclusion of additional drill metres and is now expected to be completed in the middle of October. The preliminary economic assessment (“PEA”) is on track for completion in 4Q 2021.

Highlight intercepts include:

• 73.1 m averaging 241 g/t AgEq¹ from 75.0 m (104 g/t Ag, 0.06 g/t Au, 0.8% Pb and 2.5% Zn) in hole C21-510
• 133.8 m averaging 103 g/t AgEq¹ from 69.0 m (39 g/t Ag, 0.07 g/t Au, 0.8% Pb and 0.7% Zn) in hole C21-523
• 28.6 m averaging 300 g/t AgEq¹ from 265.5 m (101 g/t Ag, 0.12 g/t Au, 1.6% Pb and 3.2% Zn) including 9.4 m averaging 759 g/t AgEq¹ (257 g/t Ag, 0.26 g/t Au, 4.1% Pb & 8.1% Zn) in hole C21-519
• 22.6 m averaging 298 g/t AgEq¹ from 409.8 m (94 g/t Ag, 0.11 g/t Au, 1.7% Pb and 3.3% Zn) in hole C21-537

Taj Singh, President and CEO, states: “Highlight intercepts from this release are from both the North and South Corridors and demonstrate the potential to expand the higher-grade resource as we tighten up the drill spacing across the deposit through our Phase 2 drill program.

The slight delay in delivering our resource estimate to mid-October is due to incorporating approximately 15,000 m of additional drill data completed subsequent to the cut-off date for the Phase 1 drill program. This additional drill data is expected to result in better definition of high-grade zones and enhance the overall classification of the resource estimate for the deposit.”

DRILL RESULTS:

The initial drill holes from Phase 2 drilling were predominantly focused on the South Corridor and in the Northeast Extension of the North Corridor. This set of holes were targeting improved definition of high-grade zones within the bulk-tonnage domain and will be included in a prefeasibility study on the Project planned for 2022.

Hole C21-510, drilled in the northeast section of the South Corridor, targeted the up-dip extension of the mineralized zone intercepted in C20-375 (37.1 m of 223 g/t AgEq¹ from 143.7 m within 131.6 m of 128 g/t AgEq¹) and returned 73.1 m of 241 AgEq¹ from 75.0 m. Hole C21-525 confirmed the down-dip continuity of disseminated mineralization along the Josefina vein trend at depth returning 29.1 m of 208 g/t AgEq¹ from 484.6 m and 27.8m of 146 g/t AgEq¹ from 529.1 m.

Other holes drilled in the central part of the South Corridor were also successful in confirming continuity of higher-grade zones with highlight intercepts including 28.6 m of 300 g/t AgEq¹ from 265.5 m (C21-519), 50.4 m of 125 g/t AgEq¹ from 233.2 m (C21-515) and 31.2 m of 160 g/t AgEq¹ from 378.1 m (C21-507). In the Northeast Extension zone in the North Corridor, hole C21-523 confirmed the up-dip extension of the mineralized zone intercepted in C20-319 (168.8 m of 207 g/t AgEq¹ from 140.0 m) returning 133.8 m of 103 g/t AgEq¹ from 69.0 m.

Drill hole locations are shown in Figure 1 (see links below) and detailed drill highlights from the holes in this release are provided in the table below.

¹All results in this news release are rounded. Assays are uncut and undiluted. Widths are drilled widths, not true widths, as a full interpretation of the actual orientation of mineralization is not complete. As a guideline, intervals with disseminated mineralization were chosen based on a 25 g/t AgEq cutoff with no more than 10 m of dilution. AgEq calculations are used as the basis for total metal content calculations given Ag is the dominant metal constituent as a percentage of AgEq value in approximately 70% of the Company’s mineralized intercepts. AgEq calculations for reported drill results are based on USD $16.50/oz Ag, $1,350/oz Au, $0.85/lb Pb, $1.00/lb Zn. The calculations assume 100% metallurgical recovery and are indicative of gross in-situ metal value at the indicated metal prices. Refer to Technical Notes below for metallurgical recoveries assumed in the 2018 PEA completed on Cordero.

DRILL PROGRAM UPDATE:

The Company has now completed 22,000 m (44 holes) as part of its Phase 2 drill program (excluding drill metres used to support the updated resource). Assays from 32 holes are pending. Phase 2 drilling will continue through the remainder of the year and will be focused on three key areas: (1) upgrading inferred resources for inclusion in a prefeasibility study planned for 2022; (2) resource expansion of bulk-tonnage mineralization; and (3) testing of the width, grade and continuity of the extensive high-grade vein systems that transect the deposit.

There are currently four drill rigs operating on site. Despite the increased risk that the Delta variant poses to future exploration at the Project, Phase 2 drilling is progressing as planned.

SUPPORTING MATERIALS:

Supporting maps and sections, drill hole locations and full assay results can be found at the following link:
https://discoverysilver.com/…

A PDF of this release with supporting maps and sections included as appendices can be found at the following link:
https://discoverysilver.com/…

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the few silver projects globally that offers margin, size and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico, and is supported by an industry leading balance sheet with over C$80 million available for aggressive exploration, resource expansion and future development. Discovery was a recipient of the 2020 TSX Venture 50 award and the 2021 OTCQX Best 50 award.

On Behalf of the Board of Directors,

Taj Singh, M.Eng, P.Eng, CPA,
President, Chief Executive Officer and Director

For further information contact:

Forbes Gemmell, CFA
VP Corporate Development & Investor Relations
Phone: 416-613-9410
Email: forbes.gemmell@discoverysilver.com
Website: www.discoverysilver.com

In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-capital.ch

Sample analysis and QA/QC Program

The true width of the veins is estimated to be approximately 70% of the drilled width. Assays are uncut except where indicated. All core assays are from HQ drill core unless stated otherwise. Drill core is logged and sampled in a secure core storage facility located at the project site 40km north of the city of Parral. Core samples from the program are cut in half, using a diamond cutting saw, and are sent to ALS Geochemistry-Mexico for preparation in Chihuahua City, Mexico, and subsequently pulps are sent to ALS Vancouver, Canada, which is an accredited mineral analysis laboratory, for analysis. All samples are prepared using a method whereby the entire sample is crushed to 70% passing -2mm, a split of 250g is taken and pulverized to better than 85% passing 75 microns. Samples are analyzed for gold using standard Fire Assay-AAS techniques (Au-AA24) from a 50g pulp. Over limits are analyzed by fire assay and gravimetric finish. Samples are also analyzed using thirty three-element inductively coupled plasma method (“ME-ICP61”). Over limit sample values are re-assayed for: (1) values of zinc > 1%; (2) values of lead > 1%; and (3) values of silver > 100 g/t. Samples are re-assayed using the ME-OG62 (high-grade material ICP-AES) analytical package. For values of silver greater than 1,500 g/t, samples are re-assayed using the Ag-CON01 analytical method, a standard 30 g fire assay with gravimetric finish. Certified standards and blanks are routinely inserted into all sample shipments to ensure integrity of the assay process. Selected samples are chosen for duplicate assay from the coarse reject and pulps of the original sample. No QAQC issues were noted with the results reported herein.

Qualified Person

Gernot Wober, P.Geo, VP Exploration, Discovery Silver Corp., is the Company’s designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and validated that the information contained in this news release is accurate.

TECHNICAL NOTES & FORWARD-LOOKING STATEMENTS:

The most recent technical report for the Cordero Project is the 2018 Preliminary Economic Assessment (PEA) authored by M3 Engineering and Technology Corp and includes the most recent resource estimate, completed by Independent Mining Consultants, Inc. It is available on Discovery’s website and on SEDAR under Levon Resources Ltd, a wholly owned subsidiary of Discovery. The PEA assumes metallurgical recoveries of 89% for Ag, 84% for Pb, 72% for Zn and 40% for Au.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release is not for distribution to United States newswire services or for dissemination in the United States.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Cautionary Note Regarding Forward-Looking Statements

This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although Discovery believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. There can be no assurance that the Private Placement will close on the announced terms. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.