ANNUAL INFORMATION FORM

FOR THE YEAR ENDED DECEMBER 31, 2025

March 30, 2026

Suite 1800 – 925 West Georgia Street, Vancouver, B.C.  V6C 3L2, Canada
Phone: 604.688.3033 | Fax: 604.639.8873| Toll Free: 1.866.529.2807 | Email: info@firstmajestic.com
www.firstmajestic.com

TABLE OF CONTENTS

Suite 1800 – 925 West Georgia Street, Vancouver, B.C.  V6C 3L2, Canada
Phone: 604.688.3033 | Fax: 604.639.8873| Toll Free: 1.866.529.2807 | Email: info@firstmajestic.com
www.firstmajestic.com

PRELIMINARY NOTES

Date of Information

Unless otherwise indicated, all information contained in this Annual Information Form ("AIF") of First Majestic Silver Corp. ("First Majestic" or the "Company") is as of December 31, 2025.

Financial Information

The Company's financial results are prepared and reported in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and are presented in United States dollars.

Forward-looking Information

Certain statements contained in this AIF constitute forward-looking information or forward-looking statements under applicable securities laws (collectively, “forward-looking statements”).  These statements relate to future events or the Company’s future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management’s experience and perception of historical trends, current conditions and expected future developments.  Forward-looking statements include, but are not limited to: future financings, the redemption and/or conversion of the Company’s securities, statements with respect to the Company’s business strategy, future planning processes, commercial mining operations, anticipated mineral recoveries, projected quantities of future mineral production, interpretation of drill results and other technical data, anticipated development, expansion, exploration activities and production rates and mine plans and mine life, metal price assumptions and mining cost assumptions, the security situation at the San Martin mine, statements with respect to water source development and water inventory levels at La Encantada, exploration efforts at the Navidad and Santa Niño discoveries at the Santa Elena property, the operations of the Company’s Central Laboratory (as defined herein), the sale of the Company’s Del Toro Silver Mine (as defined herein), the estimated cost and timing of plant improvements at the Company’s operating mines and development of the Company’s development projects, the timing of completion of exploration and drilling programs and preparation of technical reports, viability of the Company’s projects, temporary suspension of mining activities at Jerritt Canyon (as defined herein), anticipated reclamation and decommissioning activities and associated costs, future exploration activities at Jerritt Canyon and the costs thereof, the implementation and effect of cost-reduction initiatives, the management and costs of future mine closures and decommissioning, the restarting of operations or potential interim plans at the Company’s temporarily suspended and/or non‐operating mines, conversion of mineral resources to proven and probable mineral reserves, potential metal recovery rates, analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable, statements with respect to the Company’s future financial position including operating efficiencies, cash flow, capital budgets, credit risk, liquidity risk, interest rate risk, costs and expenditures, cost savings, allocation of capital, the Company’s ability to service, refinance, settle, or manage its outstanding debt obligations, future compliance with financial covenants and terms of debt instruments, the Company’s share price, statements with respect to the recovery of value added tax receivables and the tax regime in Mexico, labour reforms in Mexico, the operations of mines that are not wholly-owned or that are owned through joint arrangements, the conduct, timing, or outcome of outstanding litigation, regulatory proceedings, negotiations or proceedings under NAFTA (as defined herein) or other claims and the compliance by counterparties with judgments or decisions, the Company’s plans with respect to enforcement of certain judgments in favour of the Company and the likelihood of collection under those judgments, the impact of amendments on accounting policies, the effectiveness of internal controls and procedures, the timing, receipt, maintenance and renewal of material permits, licenses and regulatory approvals, the validity of the Advanced Pricing Agreement between the Mexican Taxation Authority, Servicio de Administracion Tributaria and the Company’s subsidiary, Primero Empresa Minera, S.A. de C.V., the Company’s ability to comply with future legislation or regulations, the Company’s intent to comply with future regulatory and compliance matters, future regulatory trends, future market conditions, future staffing levels and needs, the Company’s ability to attract, train and retain qualified personnel, assessment of future opportunities of the Company, the production, projected quantities of silver bullion production, sales and other commissioning and production risks from the Company’s minting facility, operations at the Company’s minting facility, the release of the Company’s fifth Sustainability Report, timing and payments of dividends by the Company, assumptions of management, maintaining relations with local communities, maintaining relations with employees, renewing contracts related to material properties, the sourcing, availability, cost and use of energy, including liquefied natural gas, expectations regarding the effects of potential public health crises on the Company’s operations, the global economy and the market for the Company’s products and securities, the Share Repurchase Program (as defined herein), the potential impact of tariffs imposed by governments, the global economy and the market for the Company’s products and securities, those factors identified under the section “Risk Factors” in this AIF, and other statements identified as such in the documents incorporated by reference herein.  All statements other than statements of historical fact may be forward-looking statements.  Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of Measured and Indicated Mineral Resources or Proven and Probable Mineral Reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited.  Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.  These forward-looking statements involve risks and uncertainties relating to, among other things, global economic conditions, including public health threats, the inherent risks involved in mining, exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, changes in commodity prices and, particularly, silver and gold prices, changes in exchange rates, the possibility of project delays or cost overruns or unanticipated excessive operating costs and expenses, access to skilled mining development and mill production personnel, labour relations, costs of labour, relations with local communities and indigenous groups, results of exploration and development activities, accuracy of resource estimates, uncertainties related to the necessity of financing, uninsured risks, air travel to the Company’s mineral properties, the adverse effects of violence and criminal activity by organized crime groups around the Company’s projects and properties in Mexico, cyber threats, defects in title, availability and costs of materials and equipment, inability to meet future financing needs on acceptable terms, conflicts with joint venture partners, changes in national or local governments, changes in applicable legislation or application thereof, timeliness of government approvals, actual performance of facilities, equipment, and processes relative to specifications and expectations, climate change events including, but not limited to, drought conditions, flooding or freezing, availability of time on court calendars in Canada and elsewhere, the recognition of Canadian judgments under Mexican law, the possibility of settlement discussions, the risk of appeal of judgment, the insufficiency of the defendant’s assets to satisfy the judgment amount, and unanticipated environmental impacts on operations. Additional factors that could cause actual results to differ materially include, but are not limited to, the risk factors described herein.  See the “Risk Factors” section in this AIF.

The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this AIF should not be unduly relied upon.  These statements speak only as of the date of this AIF or as of the date specified in the documents incorporated by reference into this AIF, as the case may be.  The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.  Actual results may differ materially from those expressed or implied by such forward-looking statements.

Cautionary Notes to U.S. Investors Concerning Reserve and Resource Estimates

This AIF has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ materially from the requirements of United States securities laws applicable to U.S. companies.  Information concerning our mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to domestic United States issuers.  Accordingly, the disclosure in this AIF regarding our mineral properties is not comparable to the disclosure of United States issuers subject to the SEC's mining disclosure requirements.

Currency and Exchange Rate Information

The Company uses the US dollar as its presentation currency.  This AIF contains references to both U.S. dollars and Canadian dollars.  All dollar amounts (i.e. "$" or "US$"), unless otherwise indicated, are expressed in U.S. dollars and Canadian dollars are referred to as "C$".

On December 31, 2025, the exchange rate of Canadian dollars into US dollars, being the average exchange rate published by the Bank of Canada was US$1.00 equals C$1.3706.

GLOSSARY OF CERTAIN TECHNICAL TERMS

Following is a description of certain technical terms and abbreviations used in this AIF.

"AAS" means atomic absorption spectroscopy.

"Ag" means silver.

"Ag-Eq" means silver equivalent.

"Au" means gold.

"CAF" means cut-and-fill.

"CCD" means counter-current decantation, a separation technique involving water or solution and a solid.

"CIL" means carbon-in-leach.

"Concentrate" means partially purified ore.

"CRMs" means certified reference materials.

"Cu" means copper.

"Doré" means a mixture of gold and silver in cast bars, as semi-refined bullion.

"FA" means fire assay.

"Fe" means iron.

"FTSF" means filtered-tailings storage facility.

"g/t" means grams per tonne.

"GC" means general cut-off grade.

"Grade" means the metal content of ore in grams per tonne or percent.

"ha" means hectare.

"HQ" means a standard wire line bit size which produces a core diameter of 63 millimetres.

"IC" means incremental cut-off grade.

"ICP" means inductively coupled plasma.

"ID²" means inverse distance squared.

"Indicated Mineral Resource" or "Indicated Resource" means that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

"Inferred Mineral Resource" or "Inferred Resource" means that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological grade and continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes.

"ISO 9001" is the International Organization for Standardization's standard which sets out the criteria for a quality management system.

"ISO 14001" is the International Organization for Standardization's standard which sets out the criteria for an environmental management system.

"ISO/IEC 17025" is the International Organization for Standardization's standard which specifies the general requirements for the competence to carry out test and/or calibrations, including sampling.

"kg" means kilogram.

"kt" means kilotonne.

"LHS" means longhole stoping.

"Life of Mine" or "LOM" means the time in which, through the employment of the available capital, the ore reserves, or such reasonable extension of the ore reserves as conservative geological analysis may justify, will be extracted.

"LNG" means liquid natural gas.

"LVC" means Lower Volcanic Complex.

"m" means metres.

"M tonnes" means metric tonne.

"Ma" means millions of years.

"masl" means metres above sea level.

"Measured Mineral Resource" means that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes that are spaced closely enough to confirm both geological and grade continuity.

"Merrill-Crowe" means a separation technique for extracting silver and gold from a cyanide solution.

"Mineral Reserve" means the economically mineable part of a Measured Mineral Resource or Indicated Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.

"Mineral Resource" means a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

"mm" means millimetres.

"Moz Au" means million ounces of gold.

"Mt" means million tonnes.

"MW" means megawatts.

"NQ" means a standard wire line bit size which produces a core diameter of 48 millimetres.

"NSR" means net smelter return.

"OK" means ordinary kriging.

"OP" means open pit.

"Oxides" means a mixture of valuable minerals and gangue minerals from which at least one of the minerals can be extracted.

"oz/st Au" means ounce per short ton of gold.

"Pb" means lead.

"Probable Mineral Reserve" means the economically mineable part of an Indicated Mineral Resource, and in some circumstances, a Measured Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

"Proven Mineral Reserve" means the economically mineable part of a Measured Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

"QA/QC" means quality assurance and quality control.

"Qualified Person" or "QP" has the meaning given to that term in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

"RC" means reverse circulation, a type of drilling.

"RDA" means rock disposal area.

"Reserves" means Mineral Reserves.

"Resources" means Mineral Resources.

"RQD" means rock quality designation.

"Run of Mine" or "ROM" means ore in its natural, unprocessed state.

"Specific Gravity" or "SG" means a measurement that determines the density of minerals.

"SRM" means standard reference material.

"Sulphide Minerals" or "Sulphides" means any member of a group of compounds of sulfur with one or more metals.

"t" means tonne.

"t/m³" means tonnes per cubic metre.

"TOC" means total organic carbon.

"tpd" means metric tonnes per day.

"TSF" means tailings storage facility.

"μm" means micrometre.

"UVG" means upper volcanic group.

"Zn" means zinc.

CORPORATE STRUCTURE

Name, Address and Incorporation

First Majestic Silver Corp. is a company existing under the Business Corporations Act (British Columbia).  Since incorporation, First Majestic has undergone three name changes.  The last name change occurred on November 22, 2006, when the Company adopted its current name.

The Company's head office is located at Suite 1800 - 925 West Georgia Street, Vancouver, British Columbia  V6C 3L2, Canada, and its registered office is located at Suite 2500 - 666 Burrard Street, Vancouver, British Columbia  V6C 2X8, Canada.

The Company is a reporting issuer in each of the provinces of Canada.

Intercorporate Relationships

The chart set out below illustrates the corporate structure of the Company and its material subsidiaries, their respective jurisdictions of incorporation, the percentage of voting securities held and their respective interests in the Company's material mining properties as of the date of this AIF.

DESCRIPTION OF BUSINESS

General

The Company is in the business of the production, development, exploration and acquisition of mineral properties with a focus on silver and gold production, primarily in Mexico and the U.S.A. As such, the Company's business is dependent on foreign operations.  The common shares of the Company (the "Common Shares") trade on the Toronto Stock Exchange ("TSX") and on the New York Stock Exchange ("NYSE") under the symbol "AG".  The Company's Common Shares are also quoted on the Frankfurt Stock Exchange under the symbol "FMV".

The Company presently owns and operates four producing mines in Mexico:

1. the wholly-owned San Dimas Silver/Gold Mine in Durango State ("San Dimas Silver/Gold Mine" or "San Dimas");

2. the wholly-owned Santa Elena Silver/Gold Mine in Sonora State ("Santa Elena Silver/Gold Mine" or "Santa Elena");

3. a 70% joint venture interest in the Los Gatos Silver Mine in Chihuahua, Mexico, acquired in January 2025 ("Los Gatos Silver Mine" or "Los Gatos") and held through a joint venture (the "Los Gatos Joint Venture") with Dowa Metal & Mining Co., Ltd. ("Dowa"); and

4. the wholly-owned La Encantada Silver Mine in Coahuila State ("La Encantada Silver Mine" or "La Encantada").

The Company also owns the Jerritt Canyon Gold Mine ("Jerritt Canyon") in Elko, Nevada, USA.  In 2023, the Company temporarily suspended all operating activities at Jerritt Canyon to focus on exploration, definition, and expansion of the mineral resources and optimization of mine planning and plant operation (see "General Development of the Business - Significant Business Developments during the Most Recent Three Years - 2023").

In addition, the Company owns the following non-material properties:

1. the San Martín Silver Mine in Jalisco State, Mexico ("San Martín Silver Mine" or "San Martín"), currently under care and maintenance;

2. the Del Toro Silver Mine in Zacatecas State, Mexico ("Del Toro Silver Mine" or "Del Toro"), currently under care and maintenance; and

3. the La Luz Silver Project ("La Luz"), an advanced-stage silver development project in San Luis Potosi State, Mexico.

The Company does not consider San Martin, Del Toro or La Luz to be material properties for the purposes of National Instrument 51-102 Continuous Disclosure Obligations ("NI 51-102") or for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").  On December 17, 2025, the Company entered into a share purchase agreement to sell the subsidiary that owns the Del Toro Silver Mine to Sierra Madre Gold and Silver Ltd. (see the section in this AIF entitled "General Development of the Business - Mineral Properties - Non-Material Properties - Del Toro Silver Mine, Zacatecas State, Mexico" for further details).

In addition, the Company has a 100%-owned and operated minting facility ("First Mint"), located in Las Vegas, Nevada, through a subsidiary of the Company, First Mint, LLC.  By vertically integrating the production of investment-grade fine silver bullion, First Mint allows First Majestic to sell a substantially greater portion of its silver production directly to its shareholders and bullion customers.  Bullion sales out of First Mint commenced at the end of the first quarter of 2024, following the completion of commissioning for the facility.  The First Mint facility provides the Company with a steady supply of high quality, 0.999+ fine silver cast bars and silver rounds.  In 2025, bullion product sales by First Mint totalled approximately 7% of the Company's silver production.

The Company's business is not materially affected by intangibles such as licences, patents and trademarks, nor is it significantly affected by seasonal changes other than weather.  The Company is not aware of any aspect of its business that may be materially affected in the current financial year by renegotiation or termination of contracts.

The Company's business requires personnel with specialized skills and knowledge, certain of which are in high demand and may be in limited supply.  Such skills and knowledge include the areas of mining, exploration, engineering, geology, metallurgy, logistical planning, capital projects, mine construction and development, mine operation and mill production, as well as legal, finance, accounting, risk management, mine safety and security, community relations and human resources.  Although the Company believes it will be successful in attracting, training and retaining qualified personnel, there can be no assurance of such successes.

On December 31, 2025, the Company had a total of 5,535 employees and/or contractors.  Additional consultants and contractors are also retained from time to time for specific corporate activities, capital projects, development and exploration programs.

GENERAL DEVELOPMENT OF THE BUSINESS

History

Since its inception in 2003, First Majestic has been in the business of production, development, exploration and acquisition of mineral properties with a focus on silver and gold production in Mexico and the United States.

Over the past 23 years, the Company has assembled a portfolio of silver and gold mines, properties and projects which presently includes four producing mines which it operates in Mexico, three of which are wholly-owned by the Company and one of which, the Los Gatos Silver Mine, is 70% owned by the Company through the Los Gatos Joint Venture.  The Company also owns one temporarily suspended gold mine in Nevada, two silver mines under care and maintenance, an advanced-stage development silver project as well as several exploration projects.

In September 2023, the Company established its 100%-owned and operated minting facility, First Mint, located in Las Vegas, Nevada.

Significant Business Developments during the Most Recent Three Years

2023

On February 23, 2023, the Company entered into an equity distribution agreement with BMO Capital Markets Corp. and TD Securities (USA) LLC in connection with an "at-the-market" offering by the Company of up to US$100 million of Common Shares (the "2023 ATM Offering").  Sales of Common Shares under the 2023 ATM Offering were made through "at-the-market distributions" as defined in National Instrument 44‐102 Shelf Distributions ("NI 44-102"), by means of ordinary brokers' transactions on the NYSE at prevailing market prices.  No offer or sales of Common Shares were made in Canada on the TSX or other trading markets in Canada.  The Company completed distributions under the 2023 ATM Offering on June 16, 2023, selling an aggregate of 12,200,000 Common Shares for aggregate gross proceeds to the Company of approximately US$79.5 million.

Also on February 23, 2023, the Company's Board of Directors (the "Board") approved and declared a quarterly dividend of US$0.0054 per Common Share, payable on or about March 24, 2023, to all shareholders of record as of the close of business on March 10, 2023.

In March 2023, the Company renewed its share repurchase program (the "Share Repurchase Program") which it initially commenced in March 2013 and had renewed on an annual basis thereafter.  Pursuant to the renewed Share Repurchase Program, the Company was authorized to repurchase up to 5,000,000 Common Shares during the period from March 22, 2023, until March 21, 2024, which represented approximately 1.83% of the 274,479,942 issued and outstanding shares of the Company as of March 10, 2023.  During the year ended December 31, 2023, the Company did not repurchase any Common Shares under the Share Repurchase Program.

On March 20, 2023, the Company announced that it was taking action to reduce overall costs by reducing investments, and temporarily suspending all operating activities and reducing its workforce, at Jerritt Canyon.  The suspension took effect April 24, 2023.

On March 29, 2023, the Company completed the sale of all of the shares of La Guitarra Compañia Minera, S.A. de C.V., its wholly-owned subsidiary which owns the La Guitarra Silver Mine located in the Temascaltepec mining district, Mexico State, to Sierra Madre Gold & Silver Ltd. ("Sierra Madre") for total consideration of $35 million.  Total consideration consisted of 69,063,076 common shares of Sierra Madre at a deemed price of C$0.65 per share, having an aggregate value of $35 million.  First Majestic was also granted a 2% NSR on all mineral production from the La Guitarra concessions, with the NSR subject to a 1% buy-back option for $2 million.

On April 20, 2023, the Company announced that the Exploration and Technical Services Group had been combined into a single group under the leadership of Gonzalo Mercado, who was promoted to Vice-President, Exploration & Technical Services.  The Company also announced that Ramon Mendoza, the former Vice-President of Technical Services, and Persio Rosario, the former Vice-President of Innovation, Processing & Metallurgy, had left the Company.  The Company also announced that Michael Deal had been promoted to Vice-President, Metallurgy & Innovation.

On May 4, 2023, the Board approved and declared a quarterly dividend of US$0.0057 per Common Share, payable on or about June 9, 2023, to all shareholders of record as of the close of business on May 18, 2023.

On May 26, 2023, the NAFTA Arbitration Tribunal (the "Tribunal") issued an order requiring the Government of Mexico to permit the Company to withdraw VAT refunds that had been deposited by the Servicio de Administracion Tributaria (the "SAT") into Primero Empresa Minera, S.A. de C.V. ("PEM") frozen bank account from January 4, 2023 onwards, and to deposit all future VAT refunds into a bank account which shall remain freely accessible to the Company (the "PM Decision").

On May 8, 2023, the Mexican Government enacted a decree amending several provisions of the Mining Law, the Law on National Waters, the Law on Ecological Equilibrium and Environmental Protection and the General Law for the Prevention and Integral Management of Waste (the "Decree"), which became effective on May 9, 2023.  The Decree enacts various amendments to existing laws, including: (i) reductions in the duration of mining concession titles, (ii) revisions to the process to obtain new mining concessions (through a public tender), (iii) imposing additional conditions on water use and availability for mining concessions, (iv) the elimination of the "free land and first applicant" scheme, (iv) imposing additional social and environmental requirements to obtain and keep mining concessions, (v) requiring the authorization by the Ministry of Economy for the transfer of any mining concession, (vi) imposing additional penalties including cancellation of mining concessions due to non-compliance with applicable laws, (vii) dismissing all outstanding applications for new concessions, and (viii) requiring new financial instruments or collateral to guarantee the preventive, mitigation and compensation plans resulting from the social impact assessments, among other amendments.  These amendments are expected to have an impact on our current and future exploration activities and operations in Mexico.  The extent of the impact of the Decree is yet to be determined as, among other things, the Mexican Government has not yet filed the Regulations in respect of the Decree, but the impact may be material for the Company.  On June 7, 2023, the Senators of the opposition parties (PRI, PAN and PRD) filed a constitutional action against the Decree, which is pending before the Plenary of the Supreme Court of Justice of Mexico ("Mexican Supreme Court").  During the second quarter of 2023, the Company filed various amparo lawsuits, challenging the constitutionality of the Decree.  As of the date of this AIF, these amparos filed by the Company, along with numerous amparos in relation to the Decree that have been filed by other companies, are still pending before the District or Collegiate Courts.  On July 15, 2024, the Mexican Supreme Court suspended all ongoing amparo lawsuits against the Decree whilst the aforementioned constitutional action is being considered by the Mexican Supreme Court.  As of the date of this AIF, the court has not yet rendered an official ruling on the constitutional action against the Decree that was brought by the opposition parties within the Mexican government.

On June 29, 2023, the Company entered into an agreement to amend its senior secured revolving credit facility with the Bank of Nova Scotia, Bank of Montreal and Toronto Dominion Bank by extending the maturity date from March 31, 2025 to June 29, 2026 and increasing the credit limit from $100.0 million to $175.0 million (the "Revolving Credit Facility").  As part of this amendment, National Bank Financial was added to the lending syndicate and was made a party to the agreement for the Revolving Credit Facility.

On July 7, 2023, the Company reported a decrease in the production of silver at La Encantada mostly due to drought conditions in the area which limited water availability and reduced the utilization of the ball mills.  The Company announced that it had hired a geophysical consultant to help determine pilot well drill targets in an effort to locate additional water sources.  A replacement water well was discovered in April 2024.

On July 20, 2023, the Company announced the appointment of Samir Patel as General Counsel & Corporate Secretary, and the departure of Connie Lillico (former Corporate Secretary) and Sophie Hsia (former General Counsel), as a result of a reorganization at the Company.

On July 21, 2023, the Company's request for a second set of arbitration proceedings against Mexico in connection with their ongoing denial of access to PEM's VAT refunds (the "NAFTA VAT Claim") was registered by the International Centre for Settlement of Investment Disputes ("ICSID").

On July 28, 2023, the Government of Mexico filed a Preliminary Objection to Jurisdiction (the "Preliminary Objection").  Under this objection, Mexico requested the Tribunal stay the merits phase of the 2021 arbitration proceedings commenced by the Company against Mexico under Chapter 11 of the North American Free Trade Agreement ("NAFTA") with respect to the nullification of the Advanced Pricing Agreement (the "APA") that had previously been negotiated and finalized in 2012 between the SAT and PEM, the Company's Mexican subsidiary (the "NAFTA APA Claim"), with respect to the San Dimas mine.  The Preliminary Objection was dismissed by the Tribunal on December 20, 2023.

On August 3, 2023, the Board approved and declared a quarterly dividend of US$0.0051 per Common Share, payable on or about August 31, 2023, to all shareholders of record as of the close of business on August 16, 2023.

On August 14, 2023, the Company announced the closing of the sale of its 100%-owned past producing La Parrilla Silver Mine located in the state of Durango, Mexico to Golden Tag Resources Ltd. (now known as Silver Storm Mining Ltd.) ("Silver Storm") for total consideration of up to US$33.5 million.  In consideration of the sale, First Majestic received 143,673,684 common shares of Silver Storm at a deemed price of C$0.19 per share for an approximate value of C$27.0 million or US$20.0 million, representing approximately 40% of the then outstanding common shares of Silver Storm.  The Company is also entitled to receive up to US$13.5 million in either cash or common shares of Silver Storm, payable in three deferred payments upon the occurrence of specific milestones.  In addition, the Company participated in Silver Storm's offering of subscription receipts and purchased 18,009,000 Silver Storm subscription receipts at a price of C$0.20 each, which, in accordance with their terms, converted into 18,009,000 common shares and 9,004,500 common share purchase warrants, each exercisable for one additional Silver Storm common share until August 14, 2026 at a price of C$0.34 per share.

On September 14, 2023, the Company announced the opening of its 100%-owned and operated minting facility, First Mint, located in the State of Nevada.  First Mint expands upon First Majestic's existing bullion sales through vertically integrating the production of investment-grade fine silver bullion, allowing First Majestic to sell a substantially greater portion of its silver production directly to its shareholders and bullion customers.

In September 2023, the Company announced that Mani Alkhafaji had been appointed to the role of Vice-President, Corporate Development & Investor Relations.  The Company also announced that Todd Anthony had left the Company to pursue other opportunities.

On November 2, 2023, the Board approved and declared a quarterly dividend of US$0.0046 per Common Share, payable on or about November 30, 2023, to all shareholders of record as of the close of business on November 15, 2023.

On December 5, 2023, a Mexican court issued a decision partially granting constitutional protection sought by the Company in its defense of the proceeding initiated by the SAT seeking to nullify the APA.  On January 18, 2024, PEM filed an extraordinary appeal to the Mexican Supreme Court with respect to the foregoing decision (see the section in this AIF entitled "Legal Proceedings and Regulatory Actions - Legal Proceedings - Mexican Tax and NAFTA Proceedings - Domestic Remedies in Mexico" for further details).

2024

On January 18, 2024, PEM filed an extraordinary appeal to the Mexican Supreme Court with respect to PEM's constitutional arguments that were not accepted in the Mexican Circuit Court's decision.

On February 12, 2024, Mexico filed a request (the "Consolidation Request") with ICSID pursuant to the procedure in Article 1126 of NAFTA to consolidate the NAFTA APA Claim and the NAFTA VAT Claim into one arbitration proceeding.  A separate three-person tribunal to consider the Consolidation Request (the "Consolidation Tribunal") was constituted on May 8, 2024, and the first procedural hearing of the Consolidation Tribunal took place on July 16, 2024.

On February 20, 2024, Ana Lopez resigned from the Board.

On February 21, 2024, the Board approved and declared a quarterly dividend of US$0.0048 per Common Share, payable on or about March 28, 2024, to all shareholders of record as of the close of business on March 14, 2024.

On February 22, 2024, the Company entered into an equity distribution agreement (the "2024 Sales Agreement") with BMO Capital Markets Corp. and TD Securities (USA) LLC in connection with an "at-the-market" offering by the Company of up to $150 million of Common Shares (the "2024 ATM Offering").  Sales of Common Shares under the 2024 ATM Offering were made through "at-the-market distributions" as defined in NI 44-102, by means of ordinary brokers' transactions on the NYSE at prevailing market prices.  No offer or sales of Common Shares were made in Canada on the TSX or any other trading markets in Canada.  The Company distributed an aggregate of 14,300,000 Common Shares under the 2024 Sales Agreement for gross aggregate proceeds of $96.2 million.  The 2024 Sales Agreement terminated in accordance with its terms on the expiry of the Company's then-current base shelf prospectus on September 3, 2025.

On March 26, 2024, the Company announced that it had completed commissioning of its First Mint minting facility and that bullion sales had commenced.  Initial production by First Mint included limited edition "first-strike" bullion bars of various sizes.

On May 7, 2024, Jean des Rivières resigned from the Board.

On May 7, 2024, the Board approved and declared a quarterly dividend of US$0.0037 per Common Share, payable on or about June 7, 2024, to all shareholders of record as of the close of business on May 17, 2024.

On May 27, 2024, the Company's stock ticker symbol on the TSX changed from "FR" to "AG".  As a result of the change, "AG" is now the ticker symbol for the Company's Common Shares listed in Canada on the TSX, and in the United States on the NYSE.

On May 28, 2024, the Company announced the release of its 2023 Sustainability Report summarizing the Company's Environmental, Social and Governance performance for the year ended December 31, 2023.

On June 13, 2024, the Company announced drill results from its 2024 exploration program, designed to test new silver and gold mineral targets, at San Dimas Silver/Gold Mine. 

On July 9, 2024, the Company received a transfer of $11.0 million (198.4 million MXN) from the frozen bank account to a new bank account of PEM that the Company opened in July 2023.  The transfer of such funds was carried out by Mexico in order to partially comply with the PM Decision.

On July 30, 2024, the Company announced the discovery of a significant new high-grade, vein-hosted gold and silver mineralized system, the Navidad vein system at the Santa Elena Silver and Gold Mine.

On July 31, 2024, the Board approved and declared a quarterly dividend of US$0.0046 per Common Share, payable on or about August 30, 2024, to all shareholders of record as of the close of business on August 16, 2024.

On September 5, 2024, the Company entered into a definitive merger agreement (the "Merger Agreement") with Gatos Silver, Inc. ("Gatos") pursuant to which the Company agreed to acquire all the issued and outstanding common shares of Gatos (the "Gatos Transaction") in exchange for an aggregate of approximately 177,433,006 Common Shares pursuant to a merger under Delaware Law.  Gatos was a Delaware incorporated company listed on the New York Stock Exchange and its primary assets consisted of a 70% interest in the Los Gatos Joint Venture which owns the Los Gatos Silver Mine in Chihuahua, Mexico.  For further detail regarding the Los Gatos Silver Mine, please see "Mineral Properties -Los Gatos Silver Mine, Chihuahua, Mexico" below.

On September 10, 2024, the Company announced that it had renewed its Share Repurchase Program.  Pursuant to the renewed Share Repurchase Program, the Company was authorized to repurchase up to 10,000,000 of its Common Shares (approximately 3.32% of the 301,616,350 Common Shares that were issued and outstanding as of September 4, 2024) pursuant to a normal course issuer bid in the open market through the facilities of the TSX or alternative Canadian marketplaces during the period commencing September 12, 2024, until September 11, 2025.  During such period, the Company repurchased an aggregate of 836,500 Common Shares under the program, and all such shares were cancelled and returned to treasury.

On November 6, 2024, the Board approved and declared a quarterly dividend of US$0.0048 per Common Share, payable on or about November 29, 2024, to all shareholders of record as of the close of business on November 15, 2024.

On December 3, 2024, the Company announced that the Registration Statement on Form F-4 filed in connection with, and as a condition of, the Gatos Transaction became effective under the U.S. Securities Act of 1933.

On December 4, 2024, the Mexican Federal Tax Court on Administrative Matters ("Mexican Federal Tax Court") issued a new decision relating to PEM's constitutional arguments (see the section in this AIF entitled "Legal Proceedings and Regulatory Actions - Legal Proceedings - Mexican Tax and NAFTA Proceedings - Domestic Remedies in Mexico" for further details).

On December 5, 2024, the Collegiate Court issued a decision confirming the 2012 tax reassessment and as a result, on January 22, 2025, PEM filed an extraordinary appeal against the decision, and such appeal was admitted by the former President of the Mexican Supreme Court on February 10, 2025.

On December 19, 2024, the Company announced that Gatos had amended and restated its agreements (the "Amended Agreements"), with an effective date of January 1, 2025, with its joint venture partner, Dowa, regarding the Los Gatos Joint Venture, the effect of which provides Gatos with control over a variety of decisions that significantly affect the operations of, and the returns generated from, the Los Gatos Joint Venture.  As a result, Gatos commenced consolidating the financial results of the LGJV when the Amended Agreements became effective.  The Amended Agreements did not affect the ownership interests of Gatos and Dowa in the Los Gatos Joint Venture, being 70% and 30% respectively.

2025

On January 16, 2025, the Company announced the completion of the Gatos Transaction.  Under the terms of the Merger Agreement, Gatos shareholders received 2.55 Common Shares for each common share of Gatos ("Gatos Shares") and Gatos became a wholly-owned subsidiary of the Company.  The Company issued an aggregate of 177,433,006 Common Shares to acquire all of the issued and outstanding Gatos Shares (in addition to a nominal amount of cash in lieu of fractional Common Shares), resulting in former Gatos shareholders holding approximately 38% of the issued and outstanding Common Shares post-closing on a fully diluted basis.  In addition, the Merger Agreement provided for the issuance by the Company of stock options to purchase an aggregate of 8,242,244 Common Shares in exchange for all existing Gatos stock options at exercise prices adjusted by the exchange ratio.  All existing RSUs and DSUs of Gatos were settled on January 28, 2025 for an aggregate of 2,207,762 Common Shares.

On January 23, 2025, the Company announced drill results from its 2024 exploration program at the San Dimas Silver and Gold Mine.

On February 4, 2025, the Company provided new exploration results for the Navidad discovery at Santa Elena.

On February 13, 2025, the Company announced its consolidated 2025 production and cost guidance for its producing mines.

On February 20, 2025, the Board approved and declared a quarterly dividend of US$0.0057 per Common Share, payable on or about March 14, 2025, to all shareholders of record as of the close of business on February 28, 2025.

On March 13, 2025, the Company announced the appointment of Mr. Daniel Muñiz Quintanilla to the Board.  Also on March 13^th, the Company signed an amendment agreement (the "Amended Springpole Stream Agreement") to the Springpole Stream Agreement (as defined in the section in this AIF entitled "Risk Factors - Operational Risks - The Springpole Stream Agreement") among the Company, Gold Canyon Resources Inc. and First Mining Gold Corp. ("First Mining") to accelerate the final tranche payment owed by the Company under the Springpole Stream Agreement, which the Company paid in cash on March 27, 2025.  As consideration for entering into the Amended Springpole Stream Agreement, First Mining agreed to extend the expiry date of the common share purchase warrants that were issued to the Company on July 20, 2020, and to amend the exercise price of such warrants.  For further details, see the section in this AIF entitled "Risk Factors - Operational Risks - The Springpole Stream Agreement".

On March 31, 2025, the Company provided 2024 Mineral Reserve and Mineral Resource estimates for its five material properties.

On April 9, 2025, the Company announced its total production for the first quarter of 2025 from its four producing mines in Mexico.  The mines produced a total of 7.7 million silver equivalent ounces during the quarter, consisting of 3.7 million silver ounces, 36,469 gold ounces, 12.5 million pounds of zinc and 7.5 million pounds of lead.

On April 10, 2025, the Company announced the release of its 2024 Sustainability Report, which summarized its sustainability-related performance for the 2024 calendar year.

On April 11, 2025, the Company entered into an agreement to amend its Revolving Credit Facility with the Bank of Montreal, the Bank of Nova Scotia, the Toronto Dominion Bank, BMO Bank, N.A. and National Bank of Canada by, among other things, extending its maturity date from June 29, 2026 to April 11, 2028.

On May 7, 2025, the Board approved and declared a quarterly dividend of US$0.0045 per Common Share, payable on or about May 30, 2025, to all shareholders of record as of the close of business on May 16, 2025.

On May 20, 2025, the Company announced the results of its 2025 Annual General Meeting, at which Ms. Ayesha Hira was elected as a director of the Company, along with the current members of the Board.

On May 28, 2025, the Company reported a second significant discovery of vein-hosted gold and silver mineralization within a year at Santa Elena, the Santo Niño vein, and drilling results from the Navidad discovery.

On July 8, 2025, the Company provided its updated 2025 guidance, including updates to its capital budget and anticipated capital investments for 2025.  The Company also announced its total production for the second quarter of 2025 from its four producing mines in Mexico, with the mines producing a total of 7.9 million silver equivalent attributable ounces in the quarter, consisting of 3.7 million silver ounces, 33,865 gold ounces, 16.1 million pounds of zinc and 9.0 million pounds of lead.

On July 28, 2025, the Consolidation Tribunal rendered its decision (the "Consolidation Decision") and rejected Mexico's Consolidation Request.  It also lifted the suspension on the arbitration proceedings related to the NAFTA APA Claim and the NAFTA VAT Claim effective July 28, 2025.  Accordingly, the arbitration proceedings related to the NAFTA APA Claim and the NAFTA VAT Claim have now reconvened after being suspended for the past year (see the section in this AIF entitled "Legal Proceedings and Regulatory Actions - Legal Proceedings - Mexican Tax and NAFTA Proceedings - International Remedies - i. NAFTA APA Claim" for further details).

On August 14, 2025, the Board approved and declared a quarterly dividend of US$0.0048 per Common Share, payable on or about September 15, 2025, to all shareholders of record as of the close of business on August 29, 2025.

On August 18, 2025, the Company announced exploration results from its ongoing exploration program at the San Dimas mine.

On September 3, 2025, the Company announced drilling results from its 2024/2025 exploration programs at the Los Gatos mine.

On October 7, 2025, the Company announced that it had disposed of 37,600,000 common shares of Silver Storm for aggregate gross proceeds of C$8,715,680.  Immediately after the sale, the Company held beneficial ownership of, or control and direction over, 140,749,350 shares of Silver Storm Mining Ltd. and 25,671,166 common share purchase warrants, representing approximately 19.07% of the issued and outstanding shares of Silver Storm Mining Ltd. at that time on a non-diluted basis and approximately 21.79% on a partially-diluted basis.

On October 8, 2025, the Company announced its total production for the third quarter of 2025 from its four producing mines in Mexico.  The mines produced a total of 7.7 million attributable silver equivalent ounces during the quarter, consisting of 3.9 million silver ounces, 35,681 gold ounces, 13.9 million pounds of zinc and 7.7 million pounds of lead.

On October 14, 2025, the Company renewed its ongoing Share Repurchase Program.  Under the renewed program, the Company may repurchase up to 24.5 million Common Shares (being 5% of the Company's issued and outstanding Common Shares as at September 30, 2025) during the 12-month term of the program, and daily purchases are subject to a maximum of 402,698 Common Shares (being 25% of the average daily trading volume of the Common Shares for the six calendar months preceding the renewal, which was 1,610,792 Common Shares), subject to the TSX rules permitting block purchases.  The program renewed Share Repurchase Program expires on October 13, 2026.

On October 30, 2025, the Mexican Supreme Court issued a decision in favour of the appeal filed by the Mexican Ministry of Finance and Public Credit (the "Mexican Finance Ministry"), thereby overturning the prior February 10, 2025 admission by the Mexican Supreme Court of PEM's appeal regarding the Collegiate Court's decision with respect to the reassessment that had been issued by the SAT against PEM for the 2012 tax year (the "2012 Reassessment").  As a result, the Mexican Supreme Court will not hear PEM's appeal of the Collegiate Court's decision regarding the 2012 Reassessment.

On November 5, 2025, the Company announced that it had disposed of 17,500,000 common shares of Sierra Madre for aggregate gross proceeds of C$23,275,000.  Immediately after the sale, the Company held beneficial ownership of, or control and direction over, 51,563,076 shares of Sierra Madre, representing approximately 27.72% of the issued and outstanding shares of Sierra Madre at that time on a non-diluted basis.

Also on November 5, 2025, the Board approved and declared a quarterly dividend of US$0.0052 per Common Share, payable on or about November 28, 2025, to all shareholders of record as of the close of business on November 14, 2025.

On December 8, 2025, the Company announced the closing of a private placement offering of US$350,000,000 aggregate principal amount of unsecured convertible senior notes due in 2031 (the "2031 Notes").  The initial conversion rate for the 2031 Notes is 44.7227 Common Shares per US$1,000 principal amount of 2031 Notes, equivalent to an initial conversion price of approximately US$22.36 per Common Share.  The 2031 Notes are governed by an indenture (the "2031 Note Indenture") entered into between the Company and Computershare Trust Company, N.A. on December 8, 2025.  A copy of the 2031 Note Indenture is available under the Company's SEDAR+ profile at www.sedarplus.ca.

On December 15, 2025, the Company announced the appointment of Mani Alkhafaji, former Vice-President of Corporate Development & Investor Relations, to the new role of President & Chief Corporate Development Officer of the Company, effective January 1, 2026, with Keith Neumeyer to remain as Chief Executive Officer of the Company.

Also on December 15, 2025, the Company announced the start of preliminary mine planning for the Navidad and Santo Niño discoveries located at the Company's Santa Elena Silver/Gold Mine.

On December 17, 2025, the Company announced that it had entered into a definitive agreement to sell its 100%-owned past producing Del Toro Silver Mine to Sierra Madre for total consideration in cash and shares of up to US$60 million, comprised of upfront consideration of US$30 million payable upon closing and an additional US$30 million in delayed and contingent consideration. Closing is subject to Sierra Madre completing a concurrent financing and other customary conditions, including approval of the TSX Venture Exchange (the "TSXV"), Mexican anti-trust approval and approval by the disinterested shareholders of Sierra Madre. For further details, see "Mineral Properties - Non-Material Properties - Del Toro Silver Mine, Zacatecas State, Mexico" below.

2026 to Date

On January 1, 2026, Mani Alkhafaji commenced his new role as President & Chief Corporate Development Officer of the Company, and Keith Neumeyer's role changed to Chief Executive Officer of the Company.

On January 15, 2026, the Company announced that it is increasing its dividend per Common Share from 1% to 2% of net quarterly revenues earned from January 1, 2026 onwards divided by the number of Common Shares outstanding as at the record date for the dividend (with respect to net quarterly revenues generated from the Los Gatos Silver Mine, 70% of such revenue, being the revenue that is attributable to the Company, is used for the purposes of the Company's quarterly dividend calculation).

On February 8, 2026, Daniel Muñiz Quintanilla resigned from the Board.

On February 19, 2026, the Company announced its financial results for the year ended December 31, 2025, which included record revenues of approximately US$1.25 billion, and a record US$937.7 million cash in its treasury as at December 31, 2025.  Also on February 19, 2026, the Company announced that the Board had approved and declared a quarterly dividend of US$0.0083 per Common Share, payable on or about March 16, 2026, to all shareholders of record as of the close of business on February 27, 2026.

On March 10, 2026, the Company announced the results of its 2025 exploration drill program at Jerritt Canyon.

Principal Markets for Silver and Gold

The Company's products are silver and gold.  Silver is a precious metal that is a very important industrial commodity used for the transmission of electricity in several commercial applications, with growing uses in several technologies, and desirable for jewellery, silverware and investment purposes.  Silver has a unique combination of characteristics including: durability, malleability, ductility, electrical and thermal conductivity, reflectivity and anti-bacterial properties that make it valuable in numerous industrial applications including solar panels, circuit boards, electrical wiring, semi & superconductors, brazing and soldering, mirror and window coatings, electroplating, chemical catalysts, pharmaceuticals, filtration systems, batteries, televisions, computers, cell phones, household appliances, automobiles and a wide variety of other electronic products.

Product fabrication and bullion investment are two principal sources of gold demand.  Gold bullion is held as an asset class for a variety of reasons, including as a store of value and a safeguard against the collapse of paper assets such as stocks, bonds and other financial instruments that are traded in fiat currencies not exchangeable into gold (at a fixed rate) under a "gold standard", as a hedge against future inflation and for portfolio diversification.  Governments, central banks and other official institutions hold significant quantities of gold as a component of exchange reserves.  Within the fabrication category, there are a wide variety of end uses, the largest of which is the manufacture of jewelry.  Other fabrication purposes include official coins, electronics, miscellaneous industrial and decorative uses, dentistry, medals and medallions.

Silver and gold are global commodities predominantly traded on the London Bullion Market, an over-the-counter market and the COMEX, a futures and options exchange in New York, where most fund activity in relation to silver is focused.  The London Bullion Market is the global hub of over-the-counter trading in silver and gold and is the metal's main physical market.  Here, a bidding process results in a daily reference price known as the fix.  Silver and gold are quoted in US dollars per troy ounce.  The Company assigns silver and gold from its doré sales to several major metal brokers.  The Company also has streaming obligations for gold and silver from its Santa Elena and San Dimas mines, respectively, which are settled directly with the streaming companies, not through its banking relationships.

Silver can be supplied as a primary product from mining silver, or as a by-product from the mining of gold or base metals such as lead and zinc.  The Company is a primary silver producer with approximately 58% of its revenue in 2025 from the sale of silver and approximately 32% of its revenue in 2025 from the sale of gold, in comparison to approximately 43% of its revenue in 2024 from the sale of silver and approximately 57% of its revenue in 2024 from the sale of gold.

The Company also sells a portion of its silver production directly to retail buyers (business to consumer) through First Mint as high quality 0.999+ fine silver rounds, cast bars and custom medallion products.  In 2025, bullion product sales by First Mint totalled approximately 7% of the Company's silver production (see "Product Marketing and Sales").

Scientific and Technical Information

Scientific and technical disclosure in this AIF for the material properties is based on technical reports prepared in accordance with NI 43-101 (collectively, the "Technical Reports").  The Technical Reports have been filed on SEDAR+ at www.sedarplus.ca. The technical information has been updated with more current information where appropriate.  Current Mineral Resource estimates for the Company set out in this AIF were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company’s Director of Mineral Development who is responsible for such resource estimates.  Current Mineral Reserve estimates for the Company set out in this AIF were prepared under the supervision of, or were reviewed by, Andrew Pocock, P.Eng., the Company’s Director, Technical Services who is responsible for such reserve estimates.  Technical information relating to current and planned exploration programs for the Company set out in this AIF are prepared, reviewed, or carried out under the supervision of Gonzalo Mercado, P.Geo., the Company’s Vice-President, Exploration & Technical Services.  Gonzalo Mercado, David Rowe and Andrew Pocock are all Qualified Persons, as that term is defined in NI 43-101.

Technical Reports for Material Properties

The current Technical Reports for the Company's five (5) material properties are as follows:

1. Technical Report titled "San Dimas Silver/Gold Mine, Durango and Sinaloa States, Mexico, NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Estimates" with an effective date of August 31, 2025, and prepared by Mr. Gonzalo Mercado, P.Geo., Mr. David Rowe, CPG, Mr. Michael Jarred Deal, RM SME, Mr. Andrew Pocock, P.Eng. and Ms. María Elena Vázquez Jaimes, P.Geo.;

2. Technical Report titled "First Majestic Silver Corp., Santa Elena Silver/Gold Mine, Sonora, México, NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Estimates", with an effective date of June 30, 2021, and prepared by Mr. Ramon Mendoza Reyes, P.Eng., Mr. Phillip J. Spurgeon, P.Geo., Ms. María Elena Vázquez Jaimes, P.Geo., and Mr. Persio P. Rosario, P. Eng.;

3. Technical Report titled "La Encantada Silver Mine, State of Coahuila, Mexico, NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Estimates" with an effective date of August 31, 2025, and prepared by Mr. Gonzalo Mercado, P.Geo., Ms. Karla Michelle Calderon Guevara, CPG, Mr. Andrew Pocock, P.Eng., Mr. Michael Jarred Deal, RM SME and Ms. María Elena Vázquez Jaimes, P.Geo.;

4. Technical Report titled "Technical Report on the Jerritt Canyon Gold Mine, Elko County, Nevada, USA" with an effective date of March 31, 2023, and prepared by Mr. Gonzalo Mercado, P.Geo., Mr. David Rowe, CPG, Mr. Michael Jarred Deal, RM SME, Ms. María Elena Vázquez Jaimes, P.Geo., and Mr. David W. Wanner, P.E.; and

5. Technical Report titled "Mineral Resource and Mineral Reserve Update, Los Gatos Joint Venture, Chihuahua, Mexico" with an effective date of July 1, 2024, and prepared by Stephan Blaho, P.Eng and PEO, Dawn Garcia, PG, CPG, Adam Johnston, FAusIMM CP (Metallurgy), Ibrahim Karajeh, P.Eng., PEO, PMP, William Richard McBride, P.Eng., PEO, Mathew P. Oommen, Ph.D., Registered Member SME, Ronald Turner, MAusIMM CP, and Matthew L. Fuller, L.E.G., P.Geo.

Material Mineral Properties

The following properties are material to First Majestic's business: the San Dimas Silver/Gold Mine; the Santa Elena Silver/Gold Mine, the Los Gatos Silver Mine, the La Encantada Silver Mine and the Jerritt Canyon Gold Mine.  The Jerritt Canyon Gold Mine was placed on temporary suspension in April 2023 to focus on exploration, definition, and expansion of the mineral resource estimates, and optimization of mine planning and plant operations.

Production estimates and throughputs for operating mines are quoted as metric tonnes related to the tonnes per day ("tpd") capacity of the mine and mill.  Production estimates and throughput averages for each mine consider an average of two days of maintenance per month.  Annual estimates of production are based on an average of 365 calendar days per year for each of the operating mines, and these mines generally operate 330 days per year even though the throughput rates are based on a 365 calendar days average.

The following map indicates the location of each of the Company's operating mines, care and maintenance mines and its other projects in Mexico and the United States, as of the date of this AIF.

Summary of Mineral Resource and Mineral Reserve Estimates

The internal Mineral Resource and Mineral Reserve estimates reported herein represent the most up to date revisions completed by First Majestic.  Readers are cautioned against relying upon the Mineral Resource and Mineral Reserve estimates herein, as these estimates are based on certain assumptions regarding future events and performance such as: commodity prices, operating costs, taxes, metallurgical performance, and commercial terms (see "Forward-looking Information" in this AIF).  Geologic modeling and Mineral Resource and Mineral Reserve estimates are based on limited sampling information.  The following tables set out the Company's Mineral Reserve and Mineral Resource Estimates effective as of December 31, 2025.

From January 1, 2025 to December 31, 2025, the consolidated Proven and Probable Mineral Reserve Estimates for First Majestic's material properties have increased 53% in tonnage, 16% in silver metal content, 2% in gold metal content, 17% in zinc metal content, 18% in lead metal content and increased 21% in copper content.  These changes reflect mining depletion; updated cut-off grades resulting from revised economic parameters, including costs, recoveries, and metal prices; and the incorporation of exploration drilling completed in 2025.  The Los Gatos Mineral Reserve Estimates silver contained metal slightly decreased due to depletion of high-grade areas and increased for zinc, lead and copper.  The Los Gatos Mineral Reserves are reported on a 70% attributable basis to First Majestic. The Santa Elena Mineral Reserve Estimates contained metal are roughly unchanged with new Reserves at Luna and lower cut off grades offsetting the yearly depletion.  The San Dimas Mineral Reserve Estimates slight decrease is driven by mining depletion.  At La Encantada, contained silver in the Mineral Reserve Estimates increased as a result of the inclusion of TSF4 mineralized material as Mineral Reserves due to a positive economic evaluation for including such material at the assumed metal price guidance.

TABLE 1: Mineral Reserve Estimates for the Material Properties,
Effective Date of December 31, 2025

1. Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.

2. The Mineral Reserve statement provided in the table above has an effective date of December 31, 2025. 

3. The Los Gatos Mineral Reserves are reported on a 70% First Majestic attributable basis.

4. The Mineral Reserve estimates were prepared under the supervision of, or were reviewed by, Andrew Pocock, P.Eng., the Company’s Director, Technical Services and the “Qualified Person” (as such term is defined in NI 43-101) responsible for the above Mineral Reserve estimates.

5. The Mineral Reserves were estimated from the Measured and Indicated portions of the Mineral Resource estimates.  Inferred Mineral Resources were not considered to be converted into Mineral Reserve estimates.

6. Silver-equivalent grade (AgEq) is estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the selling contract.  The AgEq grade formulas are different for all mines and are presented in the description of each mine in this AIF.

7. Metal prices considered for Mineral Reserve estimates for Santa Elena, San Dimas and La Encantada were $35/oz Ag and $3,100 oz Au; metal prices considered for Los Gatos were $35/oz Ag, $3,100/oz Au, $0.95/lb Pb, $1.25/lb Zn and $4.35/lb Cu.

8. Other key assumptions and parameters include: metallurgical recoveries; metal payable terms; direct mining costs, processing costs, indirect and G&A costs and sustaining costs. These parameters are different for each mine and mining method assumed and are presented in the description of each mine in this AIF.

9. A two-step constraining approach has been implemented to estimate reserves for each mining method in use: A General Cut-off Grade ("GC") was used to delimit new mining areas that will require development of access, infrastructure and all sustaining costs.  A second Incremental Cut-off Grade ("IC") was considered to include adjacent mineralized material which recoverable value pays for all associated costs, including but not limited to the variable cost of mining and processing, indirect costs, treatment, administration costs and plant sustaining costs but excludes the access development assumed to be covered by the block above the GC grade.

10. The cut-off grades, metallurgical recoveries, payable terms and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines and are presented in each mine section in this AIF.

11. Modifying factors for conversion of resources to reserves include consideration for planned dilution which is based on spatial and geotechnical aspects of the designed stopes and economic zones, additional dilution consideration due to unplanned events, materials handling and other operating aspects, and mining recovery factors.  Mineable shapes were used as geometric constraints.

12. Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces for gold and silver and in million of pounds for zinc, lead and copper.  Metal prices and costs are expressed in US$.

13. Numbers have been rounded as required by reporting guidelines.  Totals may not sum due to rounding.

14. The technical reports from which the above-mentioned information is derived are cited under the heading "Scientific and Technical Information - Technical Reports for Material Properties" in this AIF.

From January 1, 2025 to December 31, 2025, the Company's consolidated Measured and Indicated Mineral Resource estimates for its material properties increased by 149% in tonnage, increased 7% in contained silver, and increased 79% in contained gold.  At Los Gatos, base metal resources increased by 25% in contained lead, increased 25% in contained zinc, and increased 25% in contained copper.  Los Gatos Mineral Resources are reported on a 70% First Majestic attributable basis.  These changes reflect conversion of Inferred to Indicated Mineral Resources as a result of infill drilling; mining depletion, updated cut-off grades resulting from revised economic parameters, including costs, recoveries, and metal prices; and the reporting of increased open pit resources at Jerritt Canyon.  At Jerritt Canyon, all changes in the Mineral Resources resulted from higher gold price assumptions and the corresponding reduction in underground and open pit gold cut-off grades.  Results from the 2025 exploration drilling program at Jerritt Canyon were received in early 2026 and as a result were not included in this Mineral Resource update and will be included in the next Mineral Resource update as at year-end 2026.  Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves and reflect mining depletion through 2025.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

From January 1, 2025 to December 31, 2025, the Company's consolidated Inferred Mineral Resource estimates increased by 169% in tonnage, increased 40% in contained silver, and increased 76% in contained gold.  At Los Gatos, the base metal Inferred Resources have increased 106% in contained lead, increased 103% in contained zinc, and increased 168% in contained copper.  The Los Gatos Mineral Resources are reported on a 70% First Majestic attributable basis. The changes primarily reflect the discovery and declaration of a maiden resource estimate for the Santo Niño project (Santa Elena), expansionary drilling at Navidad (Santa Elena) and Los Gatos, updated cut-off grades based on revised economic parameters including costs, recoveries, and metal prices, and the reporting of increased open pit resources at Jerritt Canyon.  At Jerritt Canyon, all changes resulted from higher gold price assumptions and the related reduction in underground and open pit gold cut-off grades.

TABLE 2: Measured and Indicated Mineral Resource Estimates for the Material Properties,
Effective Date of December 31, 2025

TABLE 3: Inferred Mineral Resource Estimates for the Material Properties,

Effective Date of December 31, 2025

1. Mineral Resource estimates are classified per CIM Definition Standards and NI 43-101.

2. The Mineral Resource estimates have an effective date of December 31, 2025.  Sample data was collected through a cut-off date of December 31, 2025 for the five properties.  All properties account for relevant technical information and mining depletion through December 31, 2025.

3. The Los Gatos Mineral Resources are reported on a 70% First Majestic attributable basis.

4. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director of Mineral Development and the "Qualified Person" (as such term is defined in NI 43-101) responsible for the above Mineral Resource estimates.

5. AgEq is estimated considering metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine.  Estimation details are listed in each mine section of this AIF.

6. Metal prices considered for all Mineral Resources estimates were $38.50/oz Ag, $3,400/oz Au, $1.05/lb Pb, $1.40/lb Zn and $4.75/lb Cu.

7. The cut-off grades and cut-off values used to report Mineral Resources are different for all mines.  The cut-off grades, values and economic parameters are listed in the applicable section describing each mine in this AIF.

8. Mineral Resources are reported within mineable stope or open pit shapes from the cut-off values calculated using the stated metal prices and metal recoveries in the description of each mine in this AIF.  The cut-off values include mill recoveries and payable metal factors appropriate to the existing processing circuit.

9. No dilution was applied to the Mineral Resources which are reported on an in-situ basis.

10. Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces for silver, silver equivalent and gold and millions of pounds for copper, lead and zinc.  Totals may not add up due to rounding.

11. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

12. The technical reports from which the above-mentioned information is derived are cited under the heading "Scientific and Technical Information - Technical Reports for Material Properties" in this AIF.

The San Martin and Del Toro mines are currently in temporary suspension of production activities and are considered non-material properties.  On December 17, 2025, the Company entered into a share purchase agreement to sell the subsidiary that owns the Del Toro Silver Mine to Sierra Madre (see the section in this AIF entitled "General Development of the Business - Mineral Properties - Non-Material Properties - Del Toro Silver Mine, Zacatecas State, Mexico for further details).  The Mineral Resource estimates shown below for the non-material properties have an effective date of December 31, 2020.

TABLE 4: Measured and Indicated Mineral Resource Estimates for the Non-Material Properties

TABLE 5: Inferred Mineral Resource Estimates for the Non-Material Properties

1. Mineral Resource estimates have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.

2. The Mineral Resource estimates for the other non-material properties were updated December 31, 2020.

3. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director of Mineral Development and the "Qualified Person" (as such term is defined in NI 43-101) responsible for the above Mineral Resource estimates.

4. Sample data was collected through a cut-off date of December 31, 2020, for the two non-material properties.

5. Sample data was collected through a cut-off date of December 31, 2020, for the two non-material properties.

6. Metal prices considered for Mineral Resources estimates of the non-material properties on December 31, 2020, were $22.50/oz Ag, $1,850/oz Au, $0.90/lb Pb and $1.05/lb Zn.

7. AgEq grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine.

8. The cut-off grades and cut-off values used to report Mineral Resources are different for all mines.

9. Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces for silver, silver equivalent and gold and millions of pounds for copper, lead and zinc.  Totals may not add up due to rounding.

10. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

11. The technical reports from which the above-mentioned information for these two non-material properties is derived are available on the Company's website.

The following table shows the total tonnage mined from each of the Company's producing mines during 2025, including ounces of silver and gold produced from each property and the tonnage mined from Mineral Reserves at each property.  A portion of the production from each mine came from material other than Mineral Reserves, as set out below under the heading "Material Mined from Areas Not in Reserves".

TABLE 6: First Majestic 2025 Production

1. Silver‐equivalent ounces are estimated considering spot metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Details as to the method of calculation can be found in description of each mine in this AIF.

2. Production and non-GAAP results reported on attributable basis to account for First Majestic's 70% ownership.

San Dimas Silver/Gold Mine, Durango and Sinaloa States, Mexico

The following description of the San Dimas Silver/Gold Mine (the "San Dimas mine") has been based on the Technical Report titled "San Dimas Silver/Gold Mine, Durango and Sinaloa States, Mexico, NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Estimates" with an effective date of August 31, 2025 (the "San Dimas Technical Report").  The San Dimas Technical Report was prepared in accordance with NI 43‐101.  Reference should be made to the full text of the San Dimas Technical Report which is available for review on the Company's profile on SEDAR+ at www.sedarplus.ca.

Property Description, Location, and Access

The San Dimas mine is an actively producing silver and gold mining complex owned and operated by the Company's wholly-owned subsidiary, PEM.  The San Dimas mine is located near the town of Tayoltita on the borders of the states of Durango and Sinaloa, approximately 125 kilometres ("km") northeast of Mazatlán, Sinaloa, and 150 km west of the city of Durango, in Durango State, Mexico.  The San Dimas mine is centered on latitude 24°06'38" N and longitude 105°55'36"W.

Access to San Dimas is by air or road from the city of Durango and Mazatlán. Flights from either Mazatlán or Durango to the town of Tayoltita require approximately 40 minutes.  Road access from Durango is through a 112 km paved road plus 120 km service road to Tayoltita, this trip requires about six and a half hours.  Road access from Mazatlán is through a newly constructed ~240km paved road, this trip requires approximately 4 hours to complete.

Water for the mining operations is obtained from wells, underground dewatering, recycled from processing activities and from the Piaxtla River.  The main infrastructure consists of roads, a townsite, an airport, the Tayoltita mill crushing and processing facilities, the Tayoltita/Cupias dry-stack tailings facilities, the Las Truchas hydroelectric generation facilities (the "Las Truchas Facilities"), four LNG 1 MW generators recently installed in 2025, and a backup portable diesel power generation site.  The main administrative offices and employee houses, the warehouses, assay laboratory, core shack and other facilities are located in Tayoltita.

San Dimas is located in the central part of the Sierra Madre Occidental (the "SM Occidental"), a mountain range characterized by rugged topography with steep, often vertical, walled valleys, and narrow canyons.  Elevations vary from 2,400 masl on the high peaks to elevations of 400 masl in the valley floor of the Piaxtla River.

The San Dimas mine consists of 119 individual concessions covering 71,867 ha in total that have been organized into six groups of concessions.  There are no royalties to be paid on the San Dimas mining concessions, other than certain government royalties in the section "Taxation".

On May 8, 2023, the Mexican government enacted the Decree, which became effective on May 9, 2023.  These amendments may have an impact on the Company's current and future exploration activities and operations in Mexico and the extent of such impact is yet to be determined but could be material for the Company.  For further information, see "Risk Factors - Operational Risks - Amendments to Mining and Other Related Laws in Mexico" in this AIF.

First Majestic is party to a precious metals purchase (streaming) agreement with Wheaton Precious Metals which entitles Wheaton Precious Metals to receive 25% of the gold equivalent production from the San Dimas mine converted at a fixed exchange ratio of silver to gold at 70 to 1 in exchange for ongoing payments equal to the lesser of $641 per ounce (as of December 31, 2025, increasing every May 10^th by 1%) and the prevailing market price for each gold equivalent ounce delivered under the agreement.  The exchange ratio includes a provision to adjust the gold to silver ratio if the average gold to silver ratio moves above or below 90:1 or 50:1, respectively, for a period of six months.  The fixed gold to silver exchange ratio as of December 31, 2025 was 70:1.

First Majestic (and its predecessor companies) secured surface rights by either acquisition of private and public land or by entering into temporary occupation agreements with surrounding Ejido communities.  The surface right agreements in place with the communities provide for use of surface land for exploration activities and mine-related ventilation infrastructure.  Current agreements cover the operation for the Company's current LOM plan presented in the San Dimas Technical Report.  An updated design and associated permit for long-term filtered tailings storage is currently being developed.

The Company has material permits for the current operations.  The Company is waiting on final resolution documents for select new environmental permits requested to the competent authorities in connection with specific projects/upgrades.

History

The San Dimas property contains a series of epithermal gold silver veins that have been mined intermittently since 1757. Modern mining began in the 1880s, by the American-owned San Luis Mining Company and the Mexican-owned Candelaria Company.

In 1961, Minas de San Luis, a company owned by Mexican interests, acquired 51% of the San Dimas group of properties and assumed operations of the mine. In 1978, the remaining 49% interest in the mine was obtained by Luismin S.A. de C.V ("Luismin").  In 2002, Wheaton River Minerals Ltd. ("Wheaton River") acquired the property from Luismin and in 2005 Wheaton River merged with Goldcorp Inc. ("Goldcorp").  Under its prior name Mala Noche Inc., Primero Mining Corp. ("Primero") acquired San Dimas from subsidiaries of Goldcorp in August 2010.  In May 2018, First Majestic acquired 100% interest in the San Dimas property through acquisition of Primero.

Historical production through December 2025 from San Dimas is estimated at more than 772 Moz of silver and more than 11.2 Moz of gold, placing the district third in Mexico for precious metal production after Pachuca and Guanajuato.  The majority of this production was prior to First Majestic's acquisition of the property.  The average production rate by First Majestic during 2019-2025 was approximately 2,190 tpd.

Historical mined tonnes and metal production from 2015 to 2025 for the San Dimas mine are shown in Figures 1 and 2 below.

Figure 1: San Dimas mine and silver production from 2015 to 2025

Figure 2: San Dimas mine and gold production from 2015 to 2025

Geological Setting, Mineralization and Deposit Types

The San Dimas property is located in the central part of the SM Occidental, near the Sinaloa-Durango state border, which has an average elevation exceeding 2000 masl, extending from the Mexico-US border to the Trans-Mexican Volcanic Belt.  Numerous epithermal deposits have been found along the SM Occidental.  The SM Occidental consists of Late Cretaceous to early Miocene igneous rocks including two major volcanic successions totalling approximately 3,500 m in thickness and are separated by erosional and depositional unconformities: the LVC and UVG.  The LVC consists of predominantly intermediate volcanic and intrusive rocks formed between approximately 100 and 50 Ma.  The LVC has traditionally been divided into local geological units based on field observations.  The lower part of the sequence consists of more than 700 m thick Socavon rhyolite, which is host to several productive veins in the district.  This overlain by the Buelna andesite and the Portal rhyolite which range from 50-250 m in thickness.

The lower sequence of rhyolitic rocks is unconformably overlain by a succession of andesitic lava flows and volcanogenic sedimentary rocks including the Productive andesite (>750 m thick), Las Palmas rhyo-andesite tuffs and flows (>300 m thick), and the Camichin Unit, a volcanogenic sedimentary unit.

The UVG sits unconformably on the LVC and consists of the lower Guarisamey andesite and the Capping rhyolite.  The Capping rhyolite consists of rhyolitic ash flows and air-fall tuffs and may reach as much as 1,500 m in thickness in the eastern part of the district.  The LVC and UVG volcanic rocks are intruded by intermediate rocks, consisting of the Arana intrusive andesite and the Arana intrusive diorite, and a felsic suite comprising the Piaxtla granite and the Santa Lucia, Bolaños, and Santa Rita dikes.  The basic dikes intrude both the LVC and the UVG.

The most prominent structures are major north-northwest-trending normal faults with opposite vergence that divide the district into five fault-bounded blocks that are tilted to the east-northeast or west-northwest.  East-west to west-southwest-east-northeast striking fractures, perpendicular to the major normal faults, are often filled by quartz veins, dacite porphyry dikes, and pebble dikes.  The veins are generally west-southwest-east-northeast-oriented, within a corridor approximately 10 km wide.  The veins are often truncated by the north-northwest-south-southeast-trending major faults, separating the original veins into segments.  These segments are named as individual veins and grouped within the mine zones by fault block.

The mine zone groupings of veins are, from west to east: West Block, Graben Block, Central Block, Tayoltita Block, Alto de Arana Block (also known as Arana HW), San Vicente, El Cristo and Santa Rita.

Three deformational events appear to be related to the development of the major faults, hydrothermal veins, and dikes.

Within the San Dimas property, the mineralization is typical of epithermal vein structures with banded and drusy textures.  Epithermal-style veins occupy east-west-trending fractures, except in the southern part of the Tayoltita Block where they strike mainly northeast, and in the Santa Rita area where they strike north-northwest.  The metal rich stage consists primarily of white to light grey, medium-to-coarse-grained crystalline quartz.  The quartz contains intergrowths of base metal sulphides (sphalerite, chalcopyrite, and galena) as well as pyrite, argentite, polybasite, stromeyerite, native silver, and electrum.

Mine geologists observed that bonanza grades along the San Luis vein in the Tayoltita Block appear to be spatially related to the Productive andesite unit and/or to the interface between the Productive andesite and the Portal rhyolite and/or the Buelna andesite.  This spatial association of vein-hosted mineralization with a favourable host-rock zone within the volcanic sequence is now recognized in other fault blocks and constitutes a major exploration criterion for the district.

More than 125 mineralized quartz veins have been recognized across the San Dimas property.  The silver and gold rich quartz veins have been followed underground from a few metres in strike-length to more than 1,500 m.  One of these veins, the Jessica Vein, extends for more than 1,000 m in the Central Block.  The vein-hosted mineral deposits within the San Dimas district are considered to be examples of silver- and gold-bearing epithermal quartz veins that formed in a low-sulphidation setting.

Exploration

The San Dimas property has been the subject of modern exploration and mine development activities since the early 1970s, and a considerable information database has been developed from both exploration and mining activities.  Exploration uses information from surface and underground mapping, sampling, and drilling together with extensive underground mine tunneling to help identify targets.  Other exploration activities include prospecting, geochemical surface sampling, geophysical, predictive artificial intelligence, and remote sensing surveys.

Most of the exploration activities carried out within the San Dimas property were centered around the Piaxtla River where exposures of silver-gold veins were found.  Outside of this area, the Lechuguilla and Ventanas areas were explored to some extent during 2008 and 2015-16.  The remainder of the property had limited exploration due to post-mineral cover by a thick layer of ignimbrites.

The most important exploration strategy at San Dimas has been underground mine tunnelling.  Tunnelling consists of advancing mine development to the north at the preferred elevation to intersect quartz veins mapped at surface.  This method discovered veins with no surface exposure, such as the Jessica Vein, which has been a major contributor to silver and gold production of metal produced in recent years.  This exploration strategy has been used at San Dimas by all property owners after Luismin, resulting in more than 500 km of underground mine development.

The San Dimas exploration potential remains open in many of the known mineralized zones.  As the mine was developed to the north, new veins were found. South of the Piaxtla River, the El Cristo area has potential for new quartz vein discoveries.  The West Block is currently being explored by drilling and tunnelling.  Opportunities to intercept the projection of fault-offset quartz veins from the Graben Block are considered good.

Drilling

Drilling in the San Dimas property is focused on the identification and delineation of vein-hosted silver and gold resources by using structural and stratigraphic knowledge of the district, and preferred vein trends.  Since the "favourable horizon" for mineral deposits concept emerged in 1975, the exploration drilling strategy has focused on core drilling perpendicular to the preferred vein orientation within the mine zones, which has proven to be the most effective method of exploration in the area.  Core drilling is predominantly done from underground stations, as the rugged topography and the great drilling distance from surface locations to the target(s) makes surface drilling challenging and expensive.  Over 1,531,000 m of core drilling has been completed since 2000, with approximately 118,000 m completed in 2025.

Sampling, Analysis and Data Verification

Diamond drill core is delivered to the core logging facility where San Dimas geologists select and mark sample intervals according to lithological contacts, mineralization, alteration, and structural features.  Sample intervals range from 0.25-1.20 m in length within mineralized structures to 0.5-1.20 m in length when sampling waste rock.  Drill core intervals selected for sampling are cut in half using a diamond saw.  One half of the core is retained in the core box for further inspection and the other half is placed in a sample bag.  For smaller diameter delineation drill core (TT-46) "termite" the entire core is sampled for analysis.

The sample number is printed with a marker on the core box beside the sampled interval, and a sample tag is inserted into the sample bag.  Sample bags are tied with string and placed in rice bags for shipping.

Since 2013, underground mine production channel samples for ore control and channel samples for resource estimation have been collected at San Dimas.  Earlier channel samples were taken either across the roof of developments or across the face in developments.  From 2016 to present, production channel samples for ore control and channel samples for resource estimation are routinely taken across the mine development face and within stopes.

Bulk density measurements are systematically taken on drill core.  From 2016 to 2023, specific gravity measurements were collected on 10 cm or longer whole core vein samples using the unsealed water immersion method.  Based on this method, an average bulk density value of 2.6 t/m³ was determined.

Quality control samples such as duplicates, checks and standards are included with all samples.

Since 2004, four different laboratories have been used for sample preparation and analysis.  These include First Majestic's San Dimas Laboratory, SGS Durango, ALS-Chemex Zacatecas, and First Majestic's ISO9001 certified Central Lab facility located at the Company's Santa Elena operation in Sonora, Mexico.

Channel samples and drill core samples were dried, crushed, and pulverized.

In general, samples were analyzed for gold by a 30 g FA AAS method.  Silver was analyzed by a 2 g, three-acid digestion AAS method.  A multi-element suite was analyzed by a 0.25 g, aqua regia digestion inductively coupled plasma optical emission spectroscopy method.

From 2013 to 2018, the QA/QC program for the San Dimas laboratory samples included insertion of a SRM and a blank in every batch of 20 samples.  From 2013 to 2018, the QA/QC program for channel and core samples included insertion of a SRM and a blank in every batch of 20 samples.  In 2013, 5% of the coarse reject and pulp duplicates from core samples were randomly selected for analysis at SGS Durango and 5% of pulp checks from core samples were analyzed at ALS-Chemex Zacatecas.  Since 2022, the QA/QC samples inserted in the core sampling include field, coarse reject, and pulp duplicates, CRMs, and coarse and pulp blanks.

The data verification included data entry error checks, visual inspections of data, and a review of QA/QC assay results was completed.  Several site visits were completed as part of the data verification process.  No significant differences were observed.

Mineral Processing and Metallurgical Testing

The San Dimas operation is made up of several operating underground mines within the property boundaries, which all feed a central milling operation.  The metallurgical test work data used to support the initial plant design has been consistently validated and reinforced by years of operational results, complemented by more recent metallurgical studies.  Metallurgical testing and mineralogical investigations are routinely conducted to support ongoing performance optimization.  The plant continuously performs tests to optimize metal recoveries and reduce operating costs, even when current performance falls within expected parameters.  This test work is conducted by the on-site metallurgical laboratory.

The metallurgical recovery projections outlined in the LOM plan are supported by the historical performance of the processing plant and metallurgical testing of future ore.  Based on plant performance data from 2021 to 2025, the estimated metal recoveries for the LOM plan and financial analysis are 91.2% for silver and 94.1% for gold.  The last two years (2024 and 2025) were used in the LOM based on future material type and corresponding metallurgical testing.  San Dimas doré consistently exceeds 97% purity (Au + Ag) and incurs no refinery penalties.  Since March 2023, purity has surpassed 98% due to process improvements, including higher-purity zinc powder and optimized flux blends.

Summary of Mineral Resource and Mineral Reserve Estimates

Mineral Resource Estimates

The block model Mineral Resource estimates are based on the database of exploration drill holes and production channel samples, underground level geological mapping, geological interpretations and models, as well as surface topography and underground mining development wireframes available as of the December 31, 2025, the cut-off date for scientific and technical data supporting the estimates.

Exploratory data analysis was completed for gold and silver assay sample values to assess the statistical and spatial character of the sample data.  Boundary analysis was completed to review the change in metal grade across the domain contacts.  Hard boundaries were used during the creation of composite samples during mineral resource estimation.

To assess the statistical character of the composite samples within each of domains, data were declustered to account for over-sampling in certain regions.  The selected composite sample length varied by domain with the most common composite sample length being 1.0 m.  The assay sample intervals were composited within the limits of the domain boundaries and then tagged with the appropriate domain code.  Drill hole and channel composite samples were evaluated for high-grade outliers and those outliers were capped to values considered appropriate for each domain.

Mineral Resources were estimated into sub-block models rotated parallel to the resource domain trend.  Parent block grades were estimated using inverse distance weighting interpolation.  The block estimates were made with multiple passes to limit the influence the channel production samples at longer ranges.  Pass 1 was a restrictive short-range pass that used channel and drill hole composite samples, and subsequent less restrictive passes used drill hole samples only.  An average bulk density value of 2.6 t/m³ was used in estimation for all resource domains.

Validation was completed for each of the resource estimation domains in multiple steps including visual inspection, global grade bias checks, and swath plots.  Overall, the block model validations demonstrated that the current Mineral Resource estimates are a reasonable representation of the primary input sample data.  Block model estimate to mine claim reconciliation has shown estimation performance within industry-expected ranges.

The Mineral Resource estimates were classified into Measured, Indicated, or Inferred based on the confidence in the geological interpretation and models, the confidence in the continuity of metal grades, the sample support for the estimation and reliability of the sample data, and on the presence of underground mining development providing detailed mapping and production channel sample support.

The Mineral Resource estimates were evaluated for reasonable prospects for eventual economic extraction by application of input parameters based on mining and processing information from the last two years of operations.  Deswik Stope Optimizer software was used to identify the blocks representing mineable volumes that exceed the cut-off value while complying with the aggregate of economic parameters.

The Mineral Resource estimates for San Dimas are presented in Table 7 and Table 8, using a NSR cut-off value of $149/t.  Measured and Indicated Mineral Resources, reported inclusive of Mineral Reserves, have an effective date of December 31, 2025 and reflect mining depletion through that date.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  From December 31, 2024 to December 31, 2025, the Measured and Indicated Mineral Resource estimates at San Dimas are unchanged in tonnage, decreased 7% in contained silver and decreased 2% in contained gold.  Over the same period, the Inferred Mineral Resource estimates increased by 9% in tonnage, increased 2% contained silver and are unchanged in contained gold.  These changes primarily reflect mining depletion, additions from exploration drilling, conversion of Inferred to Indicated Mineral Resources through drilling, and updated cut-off grades based on revised economic parameters including costs, recoveries, and metal prices.

Table 7: San Dimas Measured and Indicated Mineral Resource Estimate (Effective Date: December 31, 2025)

Table 8: San Dimas Inferred Mineral Resource Estimate (Effective Date: December 31, 2025)

1. Mineral Resource estimates are classified per CIM Definition Standards and NI 43-101.

2. Mineral Resource estimates are based on internal estimates with an effective date of December 31, 2025.

3. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director of Mineral Development and the "Qualified Person" (as such term is defined in NI 43-101) responsible for the above Mineral Resource estimates.

4. AgEq is calculated as follows:

 AgEq = Ag Grade + (Au Grade x Au Recovery x Au Payable x Au Price) / (Ag Recovery x Ag Payable x Ag Price).

5. Metal prices for Mineral Resources estimates were $38.50/oz Ag and $3,400/oz Au.  Metallurgical recovery used was 91.2% for Ag and 94.1% for Au.  Metal payable used was 99.95% for Ag and Au.

6. NSR cut-off value considered to constrain resources assumed an underground operation was $149/t and was based on actual and budgeted operating and sustaining costs.

7. Mineral Resources are reported within mineable stope shapes using the NSR cut-off value calculated using the stated metal prices and metal recoveries.  The NSR cut-off includes mill recoveries and payable metal factors appropriate to the existing processing circuit.

8. No dilution was applied to the Mineral Resource which are reported on an in-situ basis.

9. Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces.  Totals may not add up due to rounding.

10. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

For risk factors that could materially impact the Mineral Resource estimates, see "Risk Factors - Operational Risks - Uncertainty in the Estimation of Mineral Resources and Mineral Reserves".

Mineral Reserve Estimates

The Mineral Reserves estimation process consists of converting Mineral Resources into Mineral Reserves by identifying material that exceeds the mining cut-off grades and conforms to the geometrical constraints defined by the selected mining method.  Modifying factors, such as mining methods, mining recovery, dilution, sterilization, depletion, cut-off grades, geotechnical conditions, metallurgical factors, infrastructure, operability, safety, environmental, regulatory, salability of products, social and legal factors.  These factors were applied to produce mineable stope shapes.  If the Mineral Resources comply with the previous constraints, Measured Resources could be converted to Proven Reserves and Indicated Resources could be converted to Probable Reserves, in some instances Measured Resources could be converted to Probable Reserves if any or more of the modifying factors reduces the confidence of the estimates.

The NSR is the variable that was used as an indicator to segregate if the revenue from the mineralized material in a block, which is part of the Measured and Indicated Mineral Resources, exceeds the operating and capital costs.  NSR formulas were derived from the assumed economic parameters shown in Table 9.

Table 9: Economic Parameters Assumed for Calculation of NSR

Three types of cut-off values ("COV") have been determined for San Dimas: general COV, incremental COV, and marginal COV.  The COVs are expressed in $/tonne, reflecting the value that the ROM material will carry before is fed to the processing plant.

The planned dilution assumes a minimum mining width, which will depend on the applied mining method.  The minimum mining width for cut-and-fill using jackleg drills was 0.8 m, while when using jumbo drills was 3.5 m.  In the case of longhole mining, the minimum mining width assumed was 1.2 m.

The estimated overbreak in each side of the designed stope is 0.2 m for the two mining methods, longhole and cut-and-fill.  An extra dilution from the backfill floor of 0.3 m for longhole and 0.2 m for cut-and-fill is also assumed.  The unplanned dilution assumed was an additional 10% of the extracted material before becoming plant-feed.

Other than for sill mining, average mining loss throughout each mining block for both cut-and-fill and longhole mining has been assumed to be 5%.  A factor of 25% has been used for sill pillars.

From December 31, 2024 to December 31, 2025, the Proven and Probable Mineral Reserves estimates for San Dimas increased 15% in tonnage, decreased 9% in contained silver, and decreased 2% in contained gold.  These changes primarily reflect mining depletion, additions from exploration drilling, conversion of Inferred to Indicated Mineral Resources through drilling, and updated cut-off grades based on revised economic parameters including costs, recoveries, and metal prices.

The Mineral Reserves for the San Dimas mine are presented in Table 10 below.

Table 10: San Dimas Mineral Reserves Estimates (Effective Date: December 31, 2025)

1. Mineral Reserves are classified per CIM Definition Standards and NI 43-101.

2. Mineral Reserves are effective December 31, 2025, are derived from Measured & Indicated Resources, account for depletion to that date, and are reported with a reference point of mined ore delivered to the plant.

3. The Mineral Reserve estimates were prepared under the supervision of, or were reviewed by, Andrew Pocock, P.Eng., the Company’s Director, Technical Services and the “Qualified Person” (as such term is defined in NI 43-101) responsible for the above Mineral Reserve estimates.

4. AgEq is calculated as follows:

AgEq Grade = Ag Grade + Au Grade *(Au Recovery * Au Payable * Au Price) / (Ag Recovery * Ag Payable * Ag Price)

5. Metal prices for Mineral Reserves: $35/oz Ag, $3,100/oz Au.  Other key assumptions and parameters include: Metallurgical recoveries of 91.2% Ag, 94.1% Au; metal payable of 99.95% Ag & Au, costs ($/t): mining $56.83 for longhole stoping and $129.93 for cut & fill, processing $38.28 mill feed, indirect/G&A $56.96 and sustaining cost of $23.49.

6. A two-step cut-off approach was used per mining method: A general cut-off grade defines mining areas covering all associated costs; and a 2^nd pass incremental cut-off includes adjacent material covering only its own costs, excluding shared general development access & infrastructure costs which are covered by the general cut-off material.

7. Modifying factors for conversion of Mineral Resources to Mineral Reserves include but are not limited to consideration for mining methods, mining recovery, dilution, sterilization, depletion, cut-off grades, geotechnical conditions, metallurgical factors, infrastructure, operability, safety, environmental, regulatory, social and legal factors.  These factors were applied to produce mineable stope shapes.

8. Tonnage in millions of tonnes, metal content in millions of ounces, prices/costs in US$.  Numbers are rounded per guidelines; totals may not sum due to rounding.

For risk factors that could materially impact the Mineral Reserves estimates, see "Risk Factors - Operational Risks - Uncertainty in the Estimation of Mineral Resources and Mineral Reserves".

The Company is not aware of any known mining, metallurgical, environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource or Mineral Reserve estimates, other than discussed herein.

Mining Operations

San Dimas includes five underground gold and silver mining areas: West Block (San Antonio, Perez mine), Sinaloa Graben Block (Graben Block), Central Block, Tayoltita Block, and the Arana Hanging-wall Block (Santa Rita mine).

Both First Majestic and contractor personnel conduct mining activities.  Two mining methods are currently being used at San Dimas, cut-and-fill, and longhole mining.  Cut-and-fill is carried out by either jumbo or jackleg drills, whereas longhole is carried out with pneumatic and electro-hydraulic drills. Primary access is provided by adits and internal ramps.

Ground conditions throughout most of the San Dimas underground workings are considered good.  Bolting is used systematically in the main haulage ramps, drifts, and underground infrastructure.  For those sectors that present unfavorable rock quality, shotcrete, mesh, and/or steel arches are used.

Groundwater inflow has not been a significant concern within San Dimas.  Dewatering systems in San Dimas consist of main and auxiliary pumps in place at each of the mine areas.

The San Dimas ventilation system consists of an exhaust air extraction system through its main fans located on surface.  These fans generate the necessary pressure change for fresh air to enter through the portals and ventilation raises.

Processing and Recovery Operations

The San Dimas processing plant has been in successful operation for several years, consistently achieving high recoveries based on both historical performance and recent metallurgical testing.  The plant operates on a conventional cyanide leaching and Merrill-Crowe process to produce silver-gold doré bars, with an installed capacity of 3,000 tpd.

The facility is designed as a single processing train, with the crushing area separated from the rest of the circuit and connected via a belt conveyor that transfers screened material to the fine-ore bins.  The plant consists of the following operating units: a two-stage crushing circuit with a primary jaw crusher and a secondary cone crusher (one in operation, one standby) in closed circuit with a double-deck 8'x 16' dry vibrating screen; three ball mills operating in parallel, each with two hydrocyclones (one operational, one standby) in closed circuit; cyanide leaching in 16 agitated tanks with two intermediate thickeners; two CCD thickeners in series; Merrill-Crowe zinc precipitation followed by smelting; and four horizontal vacuum belt filters for tailings filtration, located adjacent to the TSF.  This configuration supports high metallurgical performance and operational efficiency across the circuit.

Infrastructure, Permitting and Compliance Activities

The infrastructure in San Dimas is fully developed to support current mining and mineral processing activities, with part of its facilities located in the town of Tayoltita.

The main infrastructure of San Dimas consists of access roads, the district mines, which are divided into five mining areas, crushing and processing facilities known as the Tayoltita mill, the Tayoltita/Cupias tailings facilities, an assay laboratory, offices and staff camp, the Las Truchas Facilities, an LNG power plant, and diesel-powered emergency generation plant, a local airport and infrastructure supporting the inhabitants of the Tayoltita townsite including a local clinic, schools and sport facilities.

Most of the personnel and light supplies for San Dimas arrive on First Majestic's regular flights from Mazatlán and Durango.  Heavy equipment and other supplies are brought by road from Mazatlán and Durango.

Electrical power is provided by a combination of First Majestic's own hydroelectric generation system (the Las Truchas Facilities), LNG generators and the Federal Power Commission supply system ("CFE").  First Majestic operates the hydroelectric generation plant, which is interconnected with the CFE power grid, four 1 MW LNG power generators, and a series of back-up diesel generators.  During 2025, the Las Truchas Facilities contributed approximately 41% of the site's energy requirements, an improvement from the prior year.

The source of water for industrial use comes mainly from mine dewatering stations and from the recycled filtered-tailings water after it has been treated.  About 80% of the water required for processing activities is being treated and recycled.  A project to improve water sourcing and reliability is under review and consideration.

Environmental and social studies are routinely performed in San Dimas to characterize existing conditions and to support the preparation of Risk Assessments and Accident Prevention Programs for the operation and are documented as part of the Environmental Management System implemented by First Majestic.

San Dimas consists of several mining areas, and it holds major environmental permits and licenses required by the Mexican authorities to carry out mineral extracting activities in the mining complex.  As historic operation of the mine pre-dates several of the Mexico mining regulations, the Company has endeavoured to progressively acquire permits and regularize the operation as well as addressing historic environmental liabilities.

The main environmental permit is the environmental license "Licencia Ambiental Unica" ("LAU") under which the mine operates its industrial facilities in accordance with the Mexican environmental protection laws administered by the Ministry of Environment and Natural Resources ("SEMARNAT") as the agency in charge of environment and natural resources.  The most recent update to the LAU was approved in April 2024.

San Dimas has implemented First Majestic's Environmental Management System ("EMS"), which supports the implementation of environmental policy and is applied to standardize tasks and strengthen a culture focused on minimizing environmental impacts.  The EMS is based on the requirements of the international standard ISO 14001:2015 and the requirements to obtain the Clean Industry Certificate ("CIC"), issued by SEMARNAT, through the Federal Attorney for Environmental Protection ("PROFEPA") in Mexico.  The EMS includes an annual compliance program to review all environmental obligations.

In May 2018, San Dimas received the CIC for improvements to its environmental management practices at the mine.

In February 2025, for the fourteenth consecutive year, the San Dimas mine was awarded the Socially Responsible Company designation by the Mexican Center for Philanthropy ("CEMEFI").

Environmental liabilities for the operation are typical of those that would be expected to be associated with an operating underground precious metals mine, including the future closure and reclamation of mine portals and ventilation infrastructure, access roads, processing facilities, power lines, dry-stacked tailings and all surface infrastructure that supports the operations.  Other potential liabilities include industrial water management, petroleum spills and carbon emissions from mobile equipment.

Capital and Operating Costs

San Dimas has been owned and operated by First Majestic since May 10, 2018.  The LOM plan includes estimates for sustaining capital expenditures for the planned mining and processing activities.  Estimated sustaining capital expenditures for the LOM plan is assumed to average approximately $25 million per annum and will mostly be allocated for on-going development, infill drilling, mine equipment rebuilding, major overhauls or replacements, plant maintenance, on-going plant refurbishing, and tailings facilities expansion as needed.  Table 11 presents the summary of the sustaining capital expenditures.

Table 11: San Dimas Mining Capital Costs Summary (Sustaining Capital) ($ Million)

Operating costs for San Dimas have been estimated for the underground mining, processing, indirect, and general & administrative costs.  Operating costs are presented as a weighted average based on mining method.  A summary of the annual operating expense is presented in Tables 12 and 13 below.

Table 12: San Dimas Operating Costs ($ Million)

Table 13: San Dimas Annual Operating Costs ($ Million)

Exploration, Development and Production

The following general annual exploration drill programs were executed in 2025:

• 40,000 m near-mine drill program at San Dimas,
• 50,000 m infill drill program at San Dimas,
• 20,000 m brownfield surface, long term focused, drill program regionally.

This amount of drilling is expected to continue on an annual basis while production continues but amounts required are reviewed annually.  In addition, an annual prospect generation program consisting of prospecting, soil and rock geochemical surveys, mapping, or geophysical surveys is conducted.

In 2025, the Company continued operating the Jessica vein, the Regina vein, the Victoria vein, and the Perez vein among other veins.  During 2025, 928,352 tonnes of mineralized material were processed with an average grade of 203 g/t Ag and 2.00 g/t Au.

Development continues in the San Dimas mine preparing extraction levels in the Perez vein and new extraction areas in the West and the Sinaloa/Graben blocks.

Santa Elena Silver/Gold Mine, Sonora State, Mexico

The following information on the Santa Elena Silver/Gold Mine ("Santa Elena mine") is based on a Technical Report prepared in accordance with NI 43‐101 and titled "First Majestic Silver Corp.  Santa Elena Silver/Gold Mine Sonora, Mexico NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Estimates" with effective date of June 30, 2021 (the "Santa Elena Technical Report").  Reference should be made to the full text of the Santa Elena Technical Report which is available for review on the Company's profile on SEDAR+ at www.sedarplus.ca.

Property Description, Location and Access

The Santa Elena mine is an actively producing underground gold and silver mining complex owned and operated by the Company's wholly-owned indirect subsidiary, Nusantara de México, S.A. de C.V.  The property is located in Sonora, Mexico, approximately 150 km northeast of the state capital city of Hermosillo and seven kilometres east of the community of Banámichi.  The property is centered on latitude 30°01.3'N and longitude 110°09.5'W.

The Santa Elena mine can be easily accessed year-round by paved highways 90 km east from Hermosillo to Ures, then 50 km north along a paved secondary road to the community of Banámichi, then by a well-maintained gravel road for 7 km to the mine site.  The Ermitaño mine can be accessed by a 5 km gravel road from the Santa Elena mine.  The Santa Elena property complex currently consists of 32 individual concessions covering 102,172 hectares and four concession applications in process which cover 72 hectares, for a total of 102,244 hectares.

In 2017, First Majestic expanded the Santa Elena property complex by purchasing a royalty-free 100% interest in the El Gachi property from Santacruz Silver Mining Ltd.  First Majestic expanded the Santa Elena property again in 2018 by completing the acquisition of a 100% interest in the Ermitaño and Cumobabi properties from Evrim Resources Corp. (whose current name is Orogen Royalties Inc.).  Upon completion of the acquisition, Orogen Royalties retained a 2% NSR royalty from the sale of mineral products extracted from the Ermitaño property and retained a 1.5% NSR from the sale of mineral products extracted from the Cumobabi property.  On October 1, 2023, Orogen Royalties Inc. assigned these two NSRs to Minera Inmet Mexico S.A. de C.V., a wholly-owned subsidiary of Orogen Royalties Inc. In addition, Osisko Gold Royalties Ltd., through its wholly-owned subsidiary Mining Royalties Mexico, S.A de C.V., holds a 2% NSR from the sale of mineral products extracted from the Ermitaño and Cumobabi properties.

In addition to the above-mentioned NSRs on the Ermitaño and Cumobabi properties, the Los Hernandez property is subject to a 2.5% NSR on the sale of mineral products derived from the property that is held by Triple Flag Precious Metals Corp.

First Majestic is party to a purchase (streaming) agreement with Royal Gold Inc. ("Royal Gold") which entitles Royal Gold to receive 20% of the gold production from the leach pad and a designated area of the Santa Elena mine in exchange for ongoing payments equal to the lesser of $487.3/oz Au as of December 31, 2025 and the prevailing market price for each gold ounce delivered under the agreement.

Surface rights in the area of the mining concessions are held both privately and through group ownership either as communal or Ejido lands.  First Majestic has agreements in place regarding surface rights with Bienes Comunales de Banámichi, Mr. Francisco Maldonado, Dabafa S.P.R. de R.L., Ejido Banámichi, and the Community of Banámichi.  As of December 2025, all obligations were met for these agreements.

Santa Elena holds the necessary permits to operate, such as the LAU, water rights concessions, and federal land occupation concessions.

History

London-based Consolidated Goldfields of Mexico Limited owned and operated the Santa Elena mine in the late 19^th century and mined from surface and underground until around 1910.  There is no indication of any further significant mining or exploration at Santa Elena until Industrias Peñoles S.A de C.V. drilled two or three holes on the property in the 1960s.  During the early 1980s, Tungsteno de Baviacora ("Tungsteno") owned the property and mined 45,000 tonnes grading 3.5 g/t Au and 60 g/t Ag from an open cut. Tungsteno periodically surface mined high silica/low fluorine material from Santa Elena.

The property remained under control of Tungsteno until 2009, when SilverCrest Mines Inc. ("SilverCrest") acquired the property.  SilverCrest commenced production from the Santa Elena open pit in October 2010.

First Majestic acquired the Santa Elena property in October 2015 through its acquisition of SilverCrest, and by year end 2025 has produced 3.9 Mt at 120 g/t Ag and 2.06 g/t Au from underground, plus 3.6 Mt of ore from Ermitaño with 61 g/t Ag and 3.58 g/t Au and has reprocessed 2.5 Mt at 40 g/t Ag and 0.68 g/t Au from the leach pad.  The 2015 to 2025 production history is presented in Figures 3 & 4 below.

Figure 3: 2015 to 2025 Santa Elena District mine and silver production.

Figure 4: 2015 to 2025 Santa Elena District mine and gold production.

Geological Setting, Mineralization and Deposit Types

The Santa Elena deposits are hosted in rocks of the SM Occidental, an igneous province that extends from the USA-Mexican border south to Guadalajara, Mexico.  The SM Occidental geological province consists of Late Cretaceous to early Miocene volcanic and sedimentary rocks that formed during two main periods of continental magmatic activity.  The first period, concurrent with the Laramide orogeny, produced an intermediate intrusive suite and its volcanic counterpart.  These rocks, named the LVC, include the Late Cretaceous to Paleocene volcanic succession of the Tarahumara Formation and are intruded by the Sonora batholiths.  In the late Eocene, volcanism became dominated by rhyolitic ignimbrites.  Extensional basins and associated continental sedimentary deposits formed between 27 Ma and 15 Ma in a north-northwest-trending belt along the western half of the SM Occidental.

Many significant porphyry deposits of the SM Occidental occur in the LVC rocks. Northwest-trending fault zones associated with early Eocene east-west directed extension, appear to control epithermal mineralization in the Sonora region.  The Santa Elena Main Vein and the Ermitaño Vein have orientations similar to this extensional trend.

The Santa Elena, Ermitaño and Navidad deposits are the most significant zones of gold and silver mineralization currently known within the Santa Elena property.

Drilling at the Santa Elena mine has delineated three primary structures occupied by veins.  The Main Vein strikes east, dips approximately 55-45° south and is delineated 1,950 m along strike and 750 m down dip.  The Alejandra and America Veins are splay of the Main Vein and strike east to east-southeast and dip steeply to the south.  Andesite and granodiorite dykes occur adjacent and sub-parallel to the Main Vein.

Drilling at the Ermitaño mine has delineated one primary vein, one secondary vein and several sub-parallel tertiary veins.  The Ermitaño Vein strikes east, dips 60° to 80° north, and is delineated 1,800 m along strike and 550 m down dip.  The vein is best developed where the structure cuts the older, brittle volcanic rocks.

The mineral deposits of Santa Elena are typical of low sulphidation gold and silver epithermal vein-hosted deposits.  Silver and gold mineralization is hosted in quartz veins and stockworks displaying typical epithermal textures, including banded, crustiform and vuggy quartz, bladed calcite (pseudomorph to quartz) and hydrothermal breccia.  Sulphide abundance is generally low within the veins and are dominantly pyrite and pyrrhotite with minor galena, sphalerite, and chalcopyrite.  Gold occurs typically as native gold, electrum, and silver occurs as electrum, minor acanthite, and argentite.

Exploration

There have been several surface and airborne exploration surveys and studies completed within the Santa Elena mineral concessions since 2006, including prospecting, mapping, rock and soil geochemical sampling, petrographic and spectrographic studies, magnetic, electromagnetic, and induced polarization surveys.  Most of this work has focused on the Santa Elena and Ermitaño mine areas.  The regional satellite and airborne surveys have been useful for developing a conceptual geological framework and local mapping and geochemical soil and rock sampling have been useful for identifying prospective drill targets.

Drilling remains the best and most widely used exploration tool within the Santa Elena property.

Drilling

Between 2006 and year-end 2025, more than 560,000 m have been drilled at the Santa Elena District.

During 2025 a total of approximately 70,000 m were drilled.

Sampling Analysis and Data Verification

The Santa Elena and Ermitaño Mineral Resource estimates are based on logging and sampling of NQ and HQ diameter core and underground channel samples.  The entire length of drill core is photographed and logged for lithology, mineralization, structure, and alteration.  Core recovery, RQD and SG measurements are also collected.  Sampling intervals respect lithology and mineralization boundaries.  The core is sawn in half for sampling.  Channel samples are collected within a 20 cm wide swath along the line using a hammer and hand chisel and are collected on a tarpaulin and then bagged.

Sample quality control is monitored using CRMs, blanks, and quarter-core field duplicates, coarse reject duplicates, and pulp duplicates.  Coarse reject and pulp samples are prepared and inserted by the primary laboratory during sample preparation.  Pulp duplicates checks are also periodically submitted to a secondary laboratory to assess between-laboratory bias.

From 2016 to 2025, samples from Ermitaño surface drill holes were dispatched to SGS in Hermosillo, Mexico for sample preparation and to SGS in Durango, Mexico for analysis.  Samples from the Santa Elena mine underground drill holes were dispatched to First Majestic's Central Laboratory in La Parrilla, Durango, Mexico which was relocated to Santa Elena in June 2023, and to SGS in Hermosillo and Durango.  Between 2022 and 2025, samples from Ermitaño surface drillholes were dispatched to First Majestic's Central Laboratory underground channel samples and underground drill hole samples from Ermitaño were sent to the Santa Elena Laboratory.  Since 2021, pulp duplicates checks are sent to ALS.  ALS and SGS laboratories are independent of First Majestic.  ALS received ISO 9001 certification in 2005 and received accreditation of ISO/IEC 17025 from Standards Council of Canada in 2005 and 2020.  The SGS laboratories conform to the ISO/IEC 17025 standard and most regional facilities have been ISO 9001 certified since 2008.  First Majestic's Central Laboratory is not independent of First Majestic.  The Central Laboratory received ISO 9001 accreditation in mid-2015 and 2017, and the Santa Elena laboratory received ISO 9001:2015 accreditation in September 2021.  In September 2023, the Santa Elena Laboratory was incorporated under Central Laboratory management.

At SGS, samples are dried crushed and pulverized and then analyzed for 34 elements using aqua regia digestion with an ICP atomic emission spectroscopy finish.  Samples are also analyzed for silver by three-acid digestion with an AAS finish.  Older samples returning greater than 300 g/t and newer samples returning greater than 100 g/t Ag were reanalyzed for silver by 30 g fire assay with a gravimetric method.  Gold is analyzed by a 30 g fire assay with an AAS finish and samples returning >10 g/t Au are reanalyzed for gold by a 30 g fire assay with a gravimetric finish.

At the First Majestic Central Laboratory, samples are dried crushed and pulverized and then analyzed for 34 elements by two-acid digestion with an ICP finish.  All samples are also analyzed for silver by three-acid digestion with AAS finish.  Older samples returning greater than 200 g/t Ag and recent samples returning greater than 100 g/t Ag were reanalyzed for silver by a 30 g fire assay with a gravimetric finish.  Gold is analyzed by two-acid digestion with an AAS finish. Samples returning >10 g/t Au are reanalyzed for gold by a 30 g fire assay with a gravimetric finish.

At the Santa Elena Laboratory, samples were dried crushed and pulverized and then analyzed for silver by a 30 g fire assay gravimetric finish. Gold is analyzed by a 30 g fire assay AA finish.  Samples with gold values >10 g/t Au are analyzed by a 30 g fire assay gravimetric method.  The assay laboratory in Santa Elena mine has been certified under the ISO 9001:2015 standard, enabling a quality management framework that facilitates consistent quality results and continuous improvement to achieve the best industry practices.

Data verification included data entry error checks, visual inspections of important data, and a review of QA/QC assay results for data collected between 2012 and December 2025 from the Ermitaño, Alejandra, America, Santa Elena Main, Tortugas, Santo Niño, Navidad and Winter veins (the verification dataset).  Several site visits were also completed as part of the data verification process at which time drilling, logging, and sampling procedures were observed and cross sections as, core photos, core logs, and QA/QC reports were reviewed.  No significant transcription errors or grade accuracy from assessed certified standards and contamination issues were observed.

In early 2024 the gold bias assessment between Central Laboratory and check laboratories (SGS and ALS) indicated a negative marginal 10% bias for the Central Laboratory for results ranging between 3 g/t to 8 g/t (original Central Laboratory assay results were lower than check assay).  After applying necessary corrective actions by Central Laboratory, no significant bias was observed in all Au results.

Mineral Processing and Metallurgical Testing

Santa Elena is an operating mine and the metallurgical test-work data supporting the initial plant design has been proven and reinforced by plant operating results through the years of operation, combined with more recent metallurgical studies.

Metallurgical testing along with mineralogical investigation is periodically performed, and the plant is continually running tests to optimize metal recoveries and operating costs.  Composite samples are analyzed monthly to determine the metallurgic behaviour of the mineralized material fed into the processing plant.  The metallurgical testing is carried out by the Central Laboratory at Santa Elena.

Typical metal recoveries for the Santa Elena mineralized material ranged from 91% to 94% for silver and 94% to 97% for gold from the combination of ROM production from the underground mine and the leach pad material.

During 2025, metallurgical recoveries for the Ermitaño mineralized material averaged 65% for silver and 94% for gold.  Throughout 2025, performance of the new Tailings Press Filter and additional equipment that was commissioned in Q4 2022 improved, resulting in reduced moisture content in the tailings and finer grinding.  These improved metallurgical recoveries of silver and gold resulted in increased throughputs quarter on quarter and reduced rehandling costs of stacking the tailing within the tailing storage facility.

Due to the high purity of the Santa Elena and Ermitaño doré (greater than 95% silver and gold), no penalties are applied by the refineries for the presence of heavy metals.

Summary of Mineral Resource and Mineral Reserve Estimates

Mineral Resource Estimates

The block model Mineral Resource estimates for the Santa Elena, Ermitaño Navidad and Santo Niño deposits are based on the current database of exploration drill holes and production channel samples, the underground level geological mapping, the geological interpretation and model, as well as surface topography and underground mining excavation wireframes.  Geostatistical analysis, analysis of semi-variograms, block model resource estimation, and validation of the model blocks were completed.

The drill hole and channel composite samples were evaluated for high-grade outliers and those outliers were capped to values considered appropriate for estimation.  Capping of composite sample values was limited to a select few extreme values.  Outlier restriction was also used to restrict the influence of high-grade samples.

The dominant gold and silver mineralization trends were identified based on the 3D numeric models for the metal in each domain. To establish the metal grade continuity within the domains, model variograms for composite values were developed along the trends identified, and the nugget values were established from downhole variograms.

Bulk density was derived from SG measurements.  Bulk density for the resource domains was either estimated into the block models from the SG data or the mean SG value was assigned.

Block grades were estimated by either ID² or OK.  The method chosen in each case considered the characteristics of the domain, data spacing, variogram quality, and which method produced the best representation of grade continuity.

All channel samples that were used during construction of the geological models were reviewed.  Only those channels that completely cross the mineralized deposit were used during grade estimation.

The grade estimation was completed in two successive passes if channel samples were used.  The first pass used all composites, including channel samples and drill holes, and only estimated blocks within a restricted short distance from the channel samples.  The second pass applied less restrictive criteria using drill hole composites only.  If only drill hole composites were used, the estimation was sometimes completed with a single pass.

The Mineral Resources were classified into Measured, Indicated, or Inferred categories based on the confidence in the geological interpretation and models, the confidence in the continuity of metal grades, the sample support for the estimation and reliability of the sample data, and on the presence of underground mining development providing detailed mapping and production channel sample support.  Block model estimate to mine claim reconciliation has shown estimation performance within industry-expected ranges.

The Mineral Resource estimates for Santa Elena, Ermitaño, Navidad, and Santo Niño are summarized in Table 14 and Table 15 using the NSR cut-off value appropriate for the mining method assigned to each domain.  The current Mineral Resource estimates also include two surface stockpiles: one derived from the spent ore leach pad - Indicated and the other from the Ermitaño mine.  Measured and Indicated Mineral Resources, reported inclusive of Mineral Reserves, have an effective date of December 31, 2025 and reflect mining depletion through that date.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

From December 31, 2024 to December 31, 2025, the Measured and Indicated Mineral Resource estimates for Santa Elena increased 85% in tonnage, increased 30% in contained silver, and increased 26% in contained gold.  Over the same period, the Inferred Mineral Resource estimates increased 193% in tonnage, increased 144% in contained silver, and increased 100% in contained gold.  The changes to Measured and Indicated Mineral Resources are primarily driven by mining depletion offset by lower cut-off values resulting from updated metal price guidance, as well as infill drilling that converted Inferred Resources to the Measured and Indicated categories at the Ermitaño mine.  The increase in Inferred Mineral Resources is mainly related to drilling-driven expansion of the Navidad discovery and the discovery and initial reporting of the Santo Niño silver-gold deposit.  Year-over-year, the Navidad and Santo Niño discoveries added to the district Inferred Mineral Resources of 8.25 million tonnes containing 61 million AgEq ounces, comprised of 21.5 million ounces of silver and 0.41 million ounces of gold.

Table 14: Santa Elena Mineral Resource Estimates, Measured and Indicated Category

(Effective Date: December 31, 2025)

Table 15: Santa Elena Mineral Resource Estimates, Inferred Category

(Effective Date: December 31, 2025)

1. Mineral Resource estimates are classified per CIM Definition Standards and NI 43-101.

2. Mineral Resource estimates are based on internal estimates with an effective date of December 31, 2025.

3. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director of Mineral Development and the "Qualified Person" (as such term is defined in NI 43-101) responsible for the above Mineral Resource estimates.

4. AgEq is calculated as follows:

 AgEq = Ag Grade + (Au Grade x Au Recovery x Au Payable x Au Price) / (Ag Recovery x Ag Payable x Ag Price).

5. Metal prices used in the Mineral Resources estimates were $38.50/oz Ag and $3,400/oz Au.  Metallurgical recoveries range from 89 - 96% for gold and 66 - 95% for silver. Metal payable used was 99.9% for silver and 99.9% gold.

6. The NSR cut-off values used to constrain the Mineral Resources range from $65/t -$140/t.

7. Mineral Resources are reported within mineable stope shapes using the NSR cut-off value calculated using the stated metal prices and metal recoveries.  The NSR cut-off includes mill recoveries and payable metal factors appropriate to the existing processing circuit.

8. Mineral Resources are reported within stope shapes using the NSR cut-off value calculated using the stated metal prices and metal recoveries. The NSR cut-off includes mill recoveries and payable metal factors appropriate to the existing processing circuit.

9. No dilution was applied to the Mineral Resource which are reported on an in-situ basis.

10. Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces.  Totals may not add up due to rounding.

11. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.

12. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Mineral Reserve Estimates

The Mineral Reserves estimation process consists of converting Indicated and Measured Mineral Resources into Mineral Reserves by identifying material that exceeds the mining cut-off grades while conforming to specified geometrical constraints determined by the applicable mining method and modifying factors.

From December 31, 2024 to December 31, 2025, the Proven and Probable Mineral Reserves estimates for Santa Elena increased 43% in terms of tonnage, increased 8% in terms of silver metal content, and increased 3% in terms of gold metal content.

The Mineral Reserves for the Santa Elena mine are presented in Table 16.

Table 16: Santa Elena Mineral Reserves Estimates (Effective Date: December 31, 2025)

1. Mineral Reserves are classified per CIM Definition Standards and NI 43-101.

2. Mineral Reserves are effective December 31, 2025, are derived from Measured & Indicated Resources, account for depletion to that date, and are reported with a reference point of mined ore delivered to the plant.

3. The Mineral Reserve estimates were prepared under the supervision of, or were reviewed by, Andrew Pocock, P.Eng., the Company’s Director, Technical Services and the “Qualified Person” (as such term is defined in NI 43-101) responsible for the above Mineral Reserve estimates.

4. AgEq is calculated as follows:

AgEq Grade = Ag Grade + Au Grade *(Au Recovery * Au Payable * Au Price) / (Ag Recovery * Ag Payable * Ag Price)

5. Metal prices considered for Mineral Reserves estimates were $35/oz Ag and $3,100/oz Au.

6. Other key assumptions and parameters include: Metallurgical recoveries of 66.3% Ag, 94.1% Au for the Ermitaño ore, 93.2% Ag, 89.2% Au for Ermitaño Central Zone and; for the Luna zone (Ermitaño East Complex) 89.8% Ag, 93.8% Au, for Santa Elena ore 92.7% Ag and 94.4% Au; metal payable of 99.85% Ag and 99.80% Au; direct mining costs of $26/t in Ermitaño and $62.7/t in Santa Elena, processing costs of $38.5/t mill feed for the Ermitaño and Santa Elena ore, and general and administration (indirect costs) of $20.3/t.

7. A two-step cut-off approach was used per mining method: A general cut-off grade defines mining areas covering all associated costs; and a 2nd pass incremental cut-off includes adjacent material covering only its own costs, excluding shared general development access & infrastructure costs which are covered by the general cut-off material.

8. Modifying factors for conversion of resources to reserves include but are not limited to consideration for mining methods, mining recovery, dilution, sterilization, depletion, cut-off grades, geotechnical conditions, metallurgical factors, infrastructure, operability, safety, environmental, regulatory, social and legal factors.  These factors were applied to produce mineable stope shapes.

9. Tonnage in millions of tonnes, metal content in millions of ounces, prices/costs in US$.  Numbers are rounded per guidelines; totals may not sum due to rounding.

For risk factors that could materially impact the Mineral Resource estimates, see "Risk Factors - Operational Risks - Uncertainty in the Estimation of Mineral Resources and Mineral Reserves".

The Company is not aware of any known mining, metallurgical, environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource or Mineral Reserve estimates, other than discussed herein.

Mining Operations

The Santa Elena Mine operation currently consists of the Santa Elena and Ermitaño underground mines.  Mining activities are conducted by First Majestic and contractor personnel.  In December 2022, active mining operations at the Santa Elena mine were temporarily suspended and all mining was concentrated on the Ermitaño mine from 2023 as exploration activities continued in both mines.

The Santa Elena and the Ermitaño deposits vary in dip, thickness, and geotechnical conditions along strike and dip. Multiple mining methods are required to achieve an efficient extraction of mineralized material at site.  Three well-established methods were selected for mining extraction at Santa Elena: Longitudinal longhole stoping, Modified Avoca, and Cut-and-fill.  The Modified Avoca mining method and transverse longhole stoping are in use at the Ermitaño project.

Ground conditions throughout most of the Santa Elena underground workings are considered good.  Bolting is used systematically in the main haulage ramps, drifts, and underground infrastructure. For those sectors that have poorer rock quality, shotcrete, mesh and/or steel arches are used.

Groundwater inflow has been increasing at depth in the Santa Elena Mine. Dewatering systems consist of main and auxiliary pumps in place in each of the active mine areas.  Groundwater inflows in Ermitaño increased when the workings reached the 760 metres above sea level (masl) elevation.  A new permanent mine dewatering system was installed in Ermitaño in 2023 and enhanced in 2025.

The ventilation system consists of a forced air intake system through two main fans located on surface.  These fans generate the necessary pressure change for return air to exhaust through the portals and ventilation raises.  The ventilation system in Ermitaño is using a pull system with fresh air being drawn through the main twin ramps, Western Emergency Access ramp and one surface vent raise.  Spent air is exhausted out of two vent raises to surface at the edges of planned underground operations.

Processing and Recovery Operations

The processing plant has been successfully operating for several years and has continuously improved silver and gold metallurgical recoveries.  The process is based on cyanide tank leaching and Merrill-Crowe smelting of fine-ground ore to produce silver-gold doré bars.

The process plant is mostly built as a single train with the crushing area split from the remaining areas and connected through a belt conveyor to transfer the crushed product to the fine stockpiles.  The current leaching plant includes a grinding ball mill, one Metso-Outotec HIG-Mill, leaching tanks, four counter-current decantation or washing tanks, a previously processed leach-pad, a high-capacity filter plant for dewatering tailings material, a belt-filter facility and a FTSF.

The predominant feed in 2025 was Ermitaño ore.  Throughput levels averaged 3,200 tpd in 2025, with Q4 performance exceeding the projected plant capacity with an average of 3,280 tpd.

Infrastructure, Permitting and Compliance Activities

The existing infrastructure can support current and LOM plan mining and mineral processing activities.

Most of the operation's support facilities are located within a 1.5 km radius of the main plant area, facilitating the transportation and logistics of personnel, material, and equipment.  Operations personnel are transported by passenger buses from nearby towns.  All equipment, supplies and materials are brought in by road.

Most non-local staff and contractor personnel stay in rental homes available in the nearby towns of Banámichi, Huepac and Aconchi.  There are multiple hotels available in the area for visitors.

The main infrastructure consists of roads, administrative offices, a first-aid station, warehouse, assay laboratory, diesel and natural gas power generation plants, maintenance shop, water storage tanks, and water supply tank.

As of December 2025, at a throughput rate of 3,200 tpd, the optimized FTSF 1 has a capacity of 2.3 Mt, equivalent to 2.0 years and the FTSF 2 converted from a leach pad in May 2025 has a capacity of 1.9 Mt equivalent to 1.7 years with a total of 4.2Mt and 3.7 years of useful life.  The Company plans to expand FTSF 1 during 2026 and expects the expansion to be completed by December 2026, providing an additional three years of useful life.

The electric power required for the Santa Elena mine operation and supporting infrastructure is generated on-site. In 2022 an expansion to the LNG power generation plant was completed and commissioned at site.  This expanded plant has an installed capacity of 24MW, supporting the Ermitaño Mine and the new tailings filter-press plant, replacing the diesel generation at the property, significantly reducing greenhouse gas emissions and reducing energy costs. In 2025, 99.9% of the site's power was sourced from this LNG plant, with 0.1% supplied by a backup diesel generator.

Industrial water is supplied mainly from the mine dewatering system.  Two licensed water-wells are also equipped and regularly pump water to an elevated tank for non-process uses.

The Santa Elena mine has implemented First Majestic's EMS, which supports the implementation of environmental policy and is applied to standardize tasks and strengthen a culture focused on minimizing environmental impacts.  The EMS is based on the requirements of the international standard ISO 14001:2015 and the requirements to obtain the CIC, issued by SEMARNAT, through PROFEPA in Mexico.  The EMS includes an annual compliance program to review all environmental obligations.

Environmental and social studies are routinely performed to characterize existing conditions and to support the preparation of Risk Assessments and Accident Prevention Programs for the operation and are documented as part of the EMS.

Santa Elena holds all major environmental permits and licenses required by the Mexican authorities to carry out mineral extracting activities in the mining complex.  The environmental permits that are in place authorize the various works and mining activities that are currently being carried out in the Santa Elena mine, in the surroundings of the site and in the Ermitaño Project.

The main environmental permit is the LAU under which the mine operates its industrial facilities in accordance with the Mexican environmental protection laws administered by SEMARNAT as the agency in charge of environment and natural resources.  The most recent update to the main environmental permit was approved in July 2018.

Other permits and authorizations include:

• Environmental risk study;
• Accident prevention program;

• Mining waste management plan;
• Environmental impact assessment ("EIA") for the Santa Elena mine, FTSF, and the Ermitaño project;
• Change of land use for the Santa Elena mine and the Ermitaño project;
• Industrial water and mine groundwater discharge; and
• Power generation permits.

Environmental liabilities for the operation are typical of those that would be expected to be associated with an operating underground precious metals mine, including the future closure and reclamation of mine portals and ventilation infrastructure, mining waste deposits, access roads, processing facilities, power lines, filtered tailings and all surface infrastructure that supports the operations.  Other potential liabilities include industrial water management, hydrocarbon spills and carbon emissions from mobile equipment.  The reclamation work carried out at Santa Elena in 2025 includes the conforming of terraces in the filtered tailings deposits in accordance with the design, and relocation of flora (hydroseeding) and fauna in the Ermitaño industrial zone and the access road.

In addition to environmental management, Santa Elena has developed an externally-recognized health and safety management program.  In October 2022 and again in 2025, Santa Elena received a "Silver Helmet" safety award from the Mining Chamber of Mexico.  This is a significant achievement, which is awarded once per year to the safest underground mine in Mexico with over 500 employees according to the mandatory safety regulations.

Capital and Operating Costs

The LOM plan includes estimates for sustaining capital expenditures for the planned mining and processing activities.

Sustaining capital expenditures will mostly be allocated for on-going development in waste, infill drilling, mine equipment rebuilding, equipment overhauls or replacements, plant maintenance and on-going refurbishing, and for tailings management facilities expansion as needed.  Table 17 presents the summary of the sustaining capital expenditures.

Table 17: Santa Elena Mining Capital Costs Summary (Sustaining Capital) (in millions)

Operating costs for Santa Elena have been estimated for the underground mining including delineation drilling, processing costs, operations indirect, and general and administrative costs.  First Majestic currently estimates operating costs at an average of $91.2 per tonne of ore processed based on current and projected costs.  Table 18 lists the operating costs per tonne milled.  Operating costs are presented as a weighted average based on mining method.

Table 18: Santa Elena District Operating Costs ($/t)

Table 19: Santa Elena Annual Operating Costs ($ Million)

Exploration, Development and Production

The following general annual exploration drill programs were executed in 2025:

• 65,000 m near-mine drill program at the Santa Elena and or Ermitaño mine
• 5,000 m brownfields surface drill program regionally.

This amount of drilling is expected to continue on an annual basis while production continues, amounts required will be reviewed annually.  In addition, an annual prospect generation program consisting of prospecting, soil and rock geochemical surveys, mapping, or geophysical surveys is underway.

In 2025, the Company mined mostly within the Ermitaño mine.  No reprocessing of spent-ore material from the leach-pad was carried out in 2025.  During 2025, 1,101,613 tonnes of mineralized material were processed with an average grade of 62 g/t Ag and 2.65 g/t Au.

Los Gatos Silver Mine, Chihuahua, Mexico

The following information on the Los Gatos Silver Mine is based on a Technical Report prepared in accordance with NI 43-101 and titled "Mineral Resource and Mineral Reserve Update, Los Gatos Joint Venture, Chihuahua, Mexico" with an effective date of July 1, 2024 (the "Los Gatos Technical Report").  Reference should be made to the full text of the Los Gatos Technical Report which is available for review under Gatos' profile on SEDAR+ at www.sedarplus.ca.  The tables and statements in this section, reflecting updates and estimates as of December 31, 2025, and including additional information, have been reviewed and updated by First Majestic Qualified Persons.

Property Description, Location and Access

The Los Gatos Silver Mine is an active producing underground silver, lead, zinc, gold, and copper mine located approximately 7 km from the town of San José de Sitio, within the Municipality of Satevó in the State of Chihuahua, Mexico.  The mine is approximately 120 km south of the state capital of Chihuahua City.  The Esther deposit is an undeveloped Mineral Resource located approximately 4 km south-west of Los Gatos Silver Mine.

The Los Gatos Silver Mine is accessible by automobile from Mexican Federal Highway 24 to km 81 and then turning west on a newly paved road for 40 km west to the community of San José de Sitio, situated near the southeast-end of the concession block.  Travel time by automobile is approximately two hours, either from Chihuahua City from the north or Hidalgo del Parral from the south.

The Company holds its interest in the Los Gatos Silver Mine through the Los Gatos Joint Venture which consists of two Mexican companies, Minera Plata Real, S. de R.L. de C.V. ("MPR") and Operaciones San José de Plata, S. de R.L. de C.V. ("OpCo" and together with MPR, the "Joint Venture Entities"), both of which are 70% owned by the Company's wholly-owned subsidiary, Gatos, and 30% owned by Dowa.  MPR is the owner of mineral rights held in eighteen titled concessions, covering approximately 103,000 ha.  MPR has purchased surface lands covering the known extents of the Los Gatos Silver Mine and Esther Resource areas, totalling approximately 5,189 ha, and has negotiated and ratified an access agreement with the community of San José del Sitio for the use of the access road.

On December 19, 2024, Gatos, Dowa (collectively, the "Partners"), MPR and OpCo entered into the amended and restated joint venture agreement (the "A&R JVA") regarding the Los Gatos Joint Venture to explore, develop and operate the Los Gatos concessions including the Los Gatos Silver Mine in northern Mexico.  This agreement came into effect on January 1, 2025. For more details on the A&R JVA, see "Material Contracts - The A&R JVA" in this AIF.

Two concessions are subject to royalty contracts. A NSR royalty agreement was established in 2015 with the previous owner of the Los Gatos concession (title 231498) (the "La Cuesta Royalty Agreement").  The La Cuesta Royalty Agreement stipulated a 2% royalty on revenue until a threshold of $10 million in payments was reached.  Thereafter, the royalty was reduced to 0.5% until $15 million has been paid.  The 0.5% royalty was extinguished in Q3 2025 upon total royalty payments having reached $15 million.  The La Cuesta Royalty Agreement also provides for a production payment of 0.5% NSR on production from lands within a 1 km boundary of the Los Gatos concession which is also subject to the previously referenced $15 million maximum.

History

The Los Gatos area has been the subject of very limited historical prospecting and mineral exploration.  There are small prospect pits and minor historic workings in the Esther, San Luis, Tren/Margarita, and Paula zones.  There is no known record keeping from this small-scale production.  Los Gatos was initially recognized by reconnaissance activities by La Cuesta International Inc. ("La Cuesta") and La Cuesta applied for the original Los Gatos concession in 2005.

There are no records of historical Mineral Resource and Mineral Reserve estimates before the involvement of MPR and La Cuesta.  A feasibility study was completed on Los Gatos in 2017 (Tetra Tech, 2017) and the project secured financing for construction, commissioning, and start up with first concentrate produced in the second half of 2019.

The Company holds a 70% interest in the Los Gatos Joint Venture that owns the Los Gatos Silver Mine following the acquisition of Gatos completed in January 2025.

Figure 5 below shows the Los Gatos Silver Mine production from 2019 through to December 2025.

Figure 5: 2019 to 2025 Los Gatos District silver, lead and zinc production

Geological Setting, Mineralization and Deposit Types

The Los Gatos Silver Mine and Esther deposits are embedded within andesites of the Lower Volcanic Series ("LVS") of the SM Occidental volcanic province.  On the Los Gatos Joint Venture concessions, the LVS is exposed in a horst feature that stretches from the Los Gatos Silver Mine deposit approximately 25 km to the northwest to the edge of the concession package.

The Los Gatos Silver Mine is an intermediate sulphidation epithermal vein developed within a listric fault zone. Mineralization at the Los Gatos Silver Mine is characterized by silver, lead, zinc, and copper sulphides and their corresponding oxides, along with fluorite, manganese, barite, and traces of gold associated with quartz and calcite veins.  The veins vary in orientation from West-Northwest to North-Northwest and vary in thickness up to 25 m.

The Los Gatos Silver Mine deposit is a listric-shaped mineralized horizon hosting steeply to shallowly dipping mineralized-shoots at depth.  Mineralization of interest occurs for approximately 1,800 m in length, between an elevation varying roughly between 700 masl and 1,400 masl.  The top of the mineralized horizon at the Los Gatos Silver Mine is generally located at an elevation of 1,400 masl.  The natural topographic surface is in the order of 1,570 masl ± 50 masl.

The veins at the Los Gatos Silver Mine contain silver, zinc, and lead. Lower concentrations of gold and copper are also associated with the veining.  Silver mineralization occurs dominantly as acanthite (argentite) and native silver.  Zinc mineralization occurs as sphalerite, zinc silicates and zinc carbonates of variable grain sizes disseminated in quartz vein material, as open-space filling in cavities, and as replacements in the andesitic and dacitic flow units.  Sphalerite ranges from yellow to brown in color and is deposited in a similar style but is not always associated with the galena mineralization.  Zinc oxides after sphalerite also exists down along fault structures through the deposit.  Lead mineralization occurs primarily as galena and lead oxide minerals of varying grain sizes that are disseminated in quartz vein material, as open-space filling in cavities, and as replacements in the andesitic and dacitic flow units.  Copper mineralization occurs dominantly as chalcopyrite disseminated within quartz veins.  Various other copper minerals are present in trace amounts including azurite, malachite, covellite, chalcocite and native copper.  Gold mineral species have not been identified visually but are present in small quantities in assay results.

Exploration

Detailed mapping and rock geochemistry has been completed from 2022 to 2025 on various exploration targets on the Los Gatos Joint Venture concession package outside the Los Gatos Silver Mine and Esther zones.

During 2023, the first phase of a Magneto-Telluric study was completed over the Los Gatos Silver Mine and the Los Gatos fault to the northwest and southeast.  The intent of this survey was to attempt to identify structures within the basin that may indicate accumulations of mineralization similar to South-East Deeps.

Regional scale geologic mapping has been conducted over areas of the Los Gatos concession where the Los Gatos Joint Venture controls the surface rights utilizing both local staff from MPR and independent contractors.  Limited areas of detailed surface mapping exist in the immediate vicinity of the Esther and the Los Gatos Silver Mine deposits.

During 2023, a drone LiDAR and air photo survey was completed over the Ojito ranch approximately 20 km northwest of the Los Gatos Silver Mine operation.  The intent of this survey was to prioritize geological mapping targets.  During 2024, drone surveys were carried out along the Los Gatos fault area between the Los Gatos Silver Mine and San Luis and in the Los Veranos area.

Drilling

Exploration at the Los Gatos Silver Mine by MPR has been completed primarily by diamond drilling.

Since the acquisition of Los Gatos by MPR, several drilling campaigns have been carried out with different objectives.  As of December 31, 2025, approximately 647,000 m of drilling has been completed at the Los Gatos Joint Venture concessions

During 2025 a total of approximately 50,000 m were drilled.

Sampling Analysis and Data Verification

At Los Gatos only diamond drill holes core samples have been used for resource estimation purposes.

Sample intervals are selected only where the geologist recognizes mineralization. In practice, the core is extensively sampled above the hanging wall and below the footwall on either side of the mineralized zone.  Samples are constrained to a minimum length of 80 cm and a maximum of 10 m.  Surface drilling is dominantly assayed at 2.0 m intervals with underground ("UG") drill core dominantly sampled on 1.5 m intervals.  Samples are selected by the geologist as representative for each lithology; however, in the presence of hydrothermal veins and hydrothermal breccias, samples are taken every two metres, unlike the country rock where only representative samples are taken.  Geologists mark a cut line along the core to ensure adequate representation of the style of mineralization.  A sample sheet is provided to the core cutter containing sample numbers and the "from - to" intervals.  NQ and HQ core is sawn in half along its long axis with an electric diamond saw.  One half is bagged while the remaining half of the core is stored at the Geological core shack for further geological characterization and storage.  The smaller 42 mm diameter core from the UG Termite drill rigs is whole core sampled.

Samples of holes drilled from surface are sent to ALS Chemex in Chihuahua, Mexico for mechanical preparation.  After preparation, samples are sent to ALS Vancouver for chemical assay.  After analysis, pulp samples are returned to the Los Gatos Silver Mine and stored in a secured core storage facility in San José del Sitio, Chihuahua, Mexico.

Core samples from the underground drilling programs undergo mechanical preparation and analysis at an onsite laboratory at the mine.

At ALS samples are dried at 105°C, crushed 70% passing 2 mm, and split into a 250 g subsample and pulverized to 85% passing 75 μm.  Samples are analyzed by Ag, Pb, Zn, Cu using four acid digestion inductively coupled plasma - atomic emission spectroscopy (ICP61).  Samples with Ag greater than 100 g/t Ag, 1% Pb, Zn, Cu are analyzed by four acids inductively coupled plasma - atomic emission spectroscopy (OG62).  Samples with Ag values exceeding 1,500 g/t are analyzed using fire assay with gravimetric finish (GRA21).  Samples are analyzed for Au using fire assay with atomic absorption spectroscopy finish (AA23) with a re-run for values exceeding 10 g/t Au, using fire assay with gravimetric finish (GRA21).

At the Los Gatos Silver Mine, laboratory samples are dried at 105 °C, crushed 75% passing 2 mm, split into a 300 g subsample and pulverized to 85% passing 75 μm.  Samples are analyzed by Ag using Fire Assay Atomic Spectrometry.  Samples are analyzed by Pb, Zn, Cu and Fe using 2-acid digestion with atomic absorption finish.

ALS Chemex Chihuahua is independent of First Majestic and is ISO 17025 accredited.  The accreditation of ALS Vancouver encompasses preparation processes completed at ALS Chemex Chihuahua.

The Los Gatos Silver Mine laboratory is not certified and it is not an independent, third-party laboratory.

Sample assays reported by ALS and Los Gatos Silver Mine laboratory are subject to a comprehensive QA/QC program for monitoring Ag, Au, Pb and Zn.  The QA/QC procedure includes insertion of control samples to monitor precision, accuracy and contamination for the sampling, mechanical preparation, and assaying stages.  Since 2008, the QA/QC controls include pulp blanks, CRMs (Standards) and field duplicates.  Since 2022, coarse and pulp duplicates are inserted.  All quality control results are assessed using statistical analysis and visual inspection of control plots.

The data verification completed to support the 2025 mineral resource estimate includes a detailed internal review of all drilling, surface and underground, that was to be used in the Mineral Resource estimate.  This review entailed validating the database geochemical analysis values for Ag, Zn, Pb and Au back to original assay certificate from the relevant laboratory, Los Gatos Silver Mine or ALS-Chemex.  The complete UG and surface assay databases were validated against original assay certificates.  No significant errors were found during the verification programs.  The data verification for the data used for the Resource model adequately support the geological interpretations, and the analytical and database quality; and therefore, support the use of the data in Mineral Resource estimation.

Mineral Processing and Metallurgical Testing

From 2021 to 2025, the Los Gatos geometallurgy team analyzed 1,070 samples to refine the short-term block model.  This included flotation tests on 185 drill core samples (109 analyzed for mineralogy) and 885 underground channel samples.  Representativeness was assessed by comparing unprocessed samples to drill core data, confirming they reflected resource and reserve characteristics.

Since 2022, mineralogical studies have examined variability, with 109 geometallurgical samples analyzed at SGS Canada in 2025.  Zinc was primarily found as sphalerite, hemimorphite, and chlorite, with sphalerite being >80% liberated. Galena was 79% free, with the remainder tied to sphalerite, pyrite, and gangue minerals.  Spatial mapping showed hemimorphite concentrated in the Central and SE zones, while sphalerite varied. Zinc in oxide, silicate, and carbonate forms was deemed unrecoverable by flotation, and reducing pyrite in bulk Cu/Pb concentrates could improve quality.

Summary of Mineral Resource and Mineral Reserve Estimates

Mineral Resource Estimates

All Mineral Resource estimates at Los Gatos were completed using block modeling techniques.  The Mineral Resource estimates are constrained by the three-dimensional geological interpretation and modelled domains for vein-hosted mineral deposits.  Resource geologists constructed the modelled domains using information collected by mine geology staff and interpretations by geologists.  Information used included underground geological mapping, drill hole logs and drill hole assays, production channel sampling and assays.  The interpreted boundaries of the domain models strictly adhered to the contacts of mineralized veins with the surrounding country rock to produce reasonable representations of the deposit locations and volumes.

Exploratory data analysis and geostatistical analysis were completed on the raw and composite datasets to help define the interpolation parameters and Mineral Resource classifications.  The Mineral Resources were estimated into sub-block models.  Block grades were estimated using ID3 and nested search passes with outlier capping, variography, and estimation plan defined per each estimation domain.

The Mineral Resource estimates were classified into Measured, Indicated, or Inferred categories based on the confidence in the geological interpretation and models, the confidence in the continuity of metal grades, the sample support for the estimation and reliability of the sample data, and on the presence of underground mining development providing detailed mapping and production channel sample support.  Block model estimate to mine claim reconciliation has shown estimation performance within industry-expected ranges.

Mineral Resources were constrained based on a stope optimization that considered economic NSR cut-off value, price, mining costs, infrastructure constraints, and mining licenses.  For the cut-off definition, a NSR calculation was used for generation of the stope optimization shapes.

The Mineral Resource estimates for the Los Gatos Silver Mine and the Esther project are summarized in Table 20 and 21 and are reported on a 70% First Majestic attributable basis.  Measured and Indicated Mineral Resources, reported inclusive of Mineral Reserves, have an effective date of December 31, 2025 and reflect mining depletion through that date.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

From December 31, 2024 to December 31, 2025, the tonnes and contained metal have increased and the percentage changes to the Measured and Indicated and Inferred Mineral Resource estimates are shown in Figure 6.  These changes are primarily attributable to mining depletion, resource additions from exploration drilling at depth, drilling-driven conversion of Inferred to Indicated Mineral Resources, and lower NSR cut-off values resulting from updated economic parameters including costs, recoveries, and metal prices.

Figure 6: Year-over-Year Change in Mineral Resources 2024-2025

Table 20: Los Gatos Mineral Resource Estimates, Measured and Indicated Category Effective Date
December 31, 2025 (70% First Majestic Attributable Basis)

Table 21: Los Gatos Mineral Resource Estimates, Inferred Category Effective Date December 31, 2025 (70% First
Majestic Attributable Basis)

Notes:

1. Mineral Resource estimates are classified per CIM Definition Standards and NI 43-101.

2. Mineral Resource estimates are based on estimates with an effective date of December 31, 2025, and reflect mining depletion through December 31, 2025.

3. Mineral Resources estimates are reported on a 70% FMS attributable basis.

4. The Mineral Resource estimates were prepared under the supervision of, or were reviewed by, David Rowe, CPG, the Company's Director of Mineral Development and the "Qualified Person" (as such term is defined in NI 43-101) responsible for the above Mineral Resource estimates.

5. AgEq is calculated as follows:

AgEq = Ag Grade + Au Grade *(Au Recovery x Au Payable x Au Price) / (Ag Recovery x Ag Payable x Ag Price)+ Cu Grade*(Cu Recovery x Cu Payable x Cu Price x 685.7) / (Ag Recovery x Ag  Payable x Ag Price) + Pb Grade*(Pb Recovery x Pb Payable x Pb Price x 685.7) / (Ag Recovery x Ag Payable x Ag Price) + Zn Grade*(Zn Recovery x Zn Payable x Zn Price x 685.7) / (Ag Recovery x Ag Payable x Ag Price)

6. Metal prices considered for all Mineral Resources estimates were $38.50/oz Ag, $3,400/oz Au, $1.05/lb Pb, $1.40/lb Zn and $4.75/lb Cu.

7. Metallurgical recoveries used varied depending on the concentrate recovered and varied from 83.98 - 88.5% Ag, 69.61 - 70.96% Zn, 54.36 - 55.53% Au, 89.15 - 91.74% Pb and 85.14-99.06% Cu.

8. NSR cut-off value considered to constrain resources assumed an underground operation was $61.09/t and was based on actual and budgeted operating and sustaining costs.

9. Mineral Resources are reported within mineable stope shapes using the NSR cut-off value calculated using the stated metal prices and metal recoveries.  The NSR cut-off includes mill recoveries and payable metal factors appropriate to the existing processing circuit.

10. No dilution was applied to the Mineral Resource which are reported on an in-situ basis.

11. Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces for gold, silver and AgEq, and millions of pounds for copper, lead and zinc.  Totals may not add up due to rounding.

12. Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

For risk factors that could materially impact the Mineral Resource estimates, see "Risk Factors - Operational Risks - Uncertainty in the Estimation of Mineral Resources and Mineral Reserves".

Mineral Reserve Estimates

The Los Gatos Silver Mine assigned block NSR values to the resource block model for three processing recovery/revenue/cost outcomes, differentiated by the Pb/Cu ratio:

• Pb/Cu ratio of ROM ore > 15. Two concentrates, Zn and Pb, with Cu not recovered as a payable component.
• Pb/Cu ratio of ROM ore between 7 and 15.  Two concentrates, Zn and Pb, with Cu as a payable component of the Pb concentrate.
• Pb/Cu ratio of ROM ore < 7.  Three concentrates: Zn, Pb, and Cu.
• Note that final processing scenarios, recoveries and payabilities are determined based on the blended period grades fed to the processing plant and not on individual block values.

The Los Gatos Silver Mine used NSR cut-offs to estimate the Mineral Reserve.  The NSR cut-off represents the minimum value that a tonne of mineralized material must generate, considering on-site costs related to mining and processing, to ensure economic viability.  This value ensures that only material which can be mined profitably is included in the reserve estimate.  For this analysis, six NSR cut-offs were applied, corresponding to three different mining methods and two cost allocation approaches.

Mining recovery and unplanned dilution of host rock were estimated considering the selected mining method, the dip and width of the vein, and the influence of a significant hanging wall fault.  In addition, dilution from backfill was evaluated based on the mining method employed and the type of backfill material used.

The Mineable Shape Optimizer algorithm, integrated within Deswik mine design software, was employed to generate preliminary stope solids.  This process identified the potentially mineable portions of the Mineral Resource that may qualify for inclusion in the Mineral Reserve.

From December 31, 2024 to December 31, 2025, the Proven and Probable Mineral Reserves estimates for Los Gatos increased 37% in terms of tonnage, decreased 3% in terms of silver metal content, increased 21% in terms of gold metal content, and increased 21%, 18% and 17% in copper, lead and zinc content, respectively.

Table 22 presents the Mineral Reserve estimate for the Los Gatos Silver Mine as of December 31, 2025. The estimates are reported on a 70% ownership basis.

Table 22: Los Gatos Mineral Reserve Estimates
(Effective Date: December 31, 2025) (70% First Majestic Attributable Basis)

1. Mineral Reserves are classified per CIM Definition Standards and NI 43-101.

2. Mineral Reserves are effective December 31, 2025, are reported on a 70% FMS attributable basis, and are reported with a reference point of mined ore delivered to the plant.

3. The Mineral Reserve estimates were prepared under the supervision of, or were reviewed by, Andrew Pocock, P.Eng., the Company’s Director, Technical Services and the “Qualified Person” (as such term is defined in NI 43-101) responsible for the above Mineral Reserve estimates.

4. Mineral Reserves are reported within stope shapes using a variable cut-off basis with an Ag price of US$35/oz, Zn price of US$1.25/lb, Pb price of US$0.95/lb, Au price of US$3,100/oz and Cu price of US$4.35/lb.  Metallurgical recoveries used in the NSR calculation for generation of the stope solids vary based on the block Pb:Cu ratio.  For a Pb:Cu ratio >15 the NSR metallurgical recovery parameters were 84% Ag, 69.6% Zn, 89.15% Pb, 54.4% Au and 85.14% Cu, for Pb:Cu of >7 and <15, the NSR metallurgical recovery parameters were 84% Ag, 69.6% Zn, 89.15% Pb, 54.4% Au and 85.14% Cu and for Pb:Cu ratio of <7 the NSR metallurgical recovery parameters used were 88.5% Ag, 71% Zn, 91.74% Pb, 55.5% Au and 99% Cu.  The payability used in the economic analysis vary based on the block Pb:Cu ratio.  For a Pb:Cu ratio >15 the payability parameters were 92% Ag, 77% Zn, 94% Pb, 84% Au and 0% Cu, for Pb:Cu of >7 and <15, the payability parameters were 92% Ag, 77% Zn, 94% Pb, 84% Au and 37% Cu and for Pb:Cu ratio of <7 the NSR payability parameters used were 92% Ag, 74% Zn, 92% Pb, 85% Au and 69% Cu.

5. Metal Content (MC) is calculated as follows:

• Zn, Pb and Cu, MC (Mlb) = Tonnage (Mt) * Grade (%) / 100 * 2204.6

• Ag and Au, MC (Moz) = Tonnage (Mt) * Grade (g/t) / 31.1035; multiply Au MC (Moz) by 1000 to obtain Au MC (koz)

6. AgEq grade in g/t is calculated as follows:

• AgEq = Ag Grade + Au Grade *(Au Recovery x Au Payable x Au Price) / (Ag Recovery x Ag Payable x Ag Price)+ Cu Grade*(Cu  Recovery x Cu Payable x Cu Price x 685.7) / (Ag Recovery x Ag  Payable x Ag Price) + Pb Grade*(Pb Recovery x Pb Payable x Pb Price x 685.7) / (Ag Recovery x Ag Payable x Ag Price) + Zn Grade*(Zn Recovery x Zn Payable x Zn Price x 685.7) / (Ag Recovery x Ag Payable x Ag Price)

7. Modifying factors for conversion of Mineral Resources to Mineral Reserves include, but are not limited to, consideration for mining methods, mining recovery, dilution, sterilization, depletion, cut-off grades, geotechnical conditions, metallurgical factors, infrastructure, operability, safety, environmental, regulatory, social and legal factors.  These factors were applied to produce mineable stope shapes.

8. Tonnage is expressed in millions of tonnes; metal content is expressed in millions of ounces for gold, silver and silver equivalent, and millions of pounds for copper, lead and zinc, prices/costs in US$.  Totals may not add up due to rounding.

For risk factors that could materially impact the Mineral Reserves estimates, see "Risk Factors - Operational Risks - Uncertainty in the Estimation of Mineral Resources and Mineral Reserves".

The Company is not aware of any known mining, metallurgical, environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Reserve estimates, other than discussed herein.

Mining Operations

The Los Gatos Silver Mine is an underground mine that produces Ag, Zn, and Pb, with Au and Cu as by-products.  The orebody is characterized by high-grade polymetallic sulphide mineralization in an epithermal vein-style deposit.  The deposit consists of four zones called the Northwest ("NW"), Central, Southeast Upper, and Southeast ("SE") zones.  The Los Gatos Silver Mine effectively addresses several challenges in developing and operating the underground mine, including groundwater management, temperature regulation, and ground control.

The ground conditions in parts of the deposit are adversely affected by proximity to a major hanging wall fault called the Los Gatos fault.  This major basin boundary fault ranges from centimetres to tens of metres in width.  While the fault itself does not host mineralization, in areas where the mineralized veins are located adjacent to the structure, mining and ground support methods need to be adapted to limit mining dilution and increase mining recovery.

Geotechnical engineers at the Los Gatos Silver Mine have developed a rock support system which is applied to development headings (ramps and drifts), cut-and-fill stopes, longhole stopes, and pillars.  The WSP QP has engaged a highly experienced geotechnical engineer to review the rock support designs and who has visited the mine to observe installed rock support and the behaviour of the standing rock mass.  Discussions have been held with the Los Gatos Silver Mine technical staff to investigate rock mechanics challenges and identify and mitigate excavation risks.

Various combinations of rock bolts, welded-wire fabric (mesh), shotcrete and cable bolts are utilized in the mine. In addition, stope voids are backfilled with cemented backfill to provide support for remnant pillars and stope spans.

Rock support in the Los Gatos Silver Mine is complicated by major fault structures intersecting the mineralized veins at oblique and high angles.  Engineers have applied specific mining methods and rock support techniques to provide secure and safe mine openings.

The unmined rock above the uppermost stopes is referred to as the crown pillar.  At the Los Gatos Silver Mine the crown pillar has been evaluated for stability, probability of failure and likelihood of surface subsidence. Since the mineralized veins peter out many tens of metres from the topographic surface and the stopes will be backfilled, there is very little to no likelihood of crown pillar failures, nor of surface subsidence, along the strike of the deposit.  The QP is of the opinion that the rock support designs and installation protocols employed by the Los Gatos Silver Mine are adequate to manage the natural and induced stresses in the rock mass and are consistent with observed rock support strategies in mines of similar mining techniques and rock conditions.

The Los Gatos Silver Mine deposit is characterised by the Los Gatos Fault ("LGF") and a number of cross faults, including the Falla Aportadora NW, which is a major water-bearing structure. Of the six identified hydrogeological units identified at the Los Gatos Silver Mine, the central gouge zone of the LGF and less-fractured rock masses distal to the fault zones are considered to be of relatively lower permeability.  The fractured rock masses on either side of the LGF and areas where cross faults intersect the LGF are considered to be of relatively higher permeability and to be favorable conduits for groundwater flow.

Water flows into the mining area from two sources - rainwater through epiclastics and fracture zones, and upswelling thermal waters via the Lower Gatos Fault.

The strategy for managing water at the Los Gatos Silver Mine is to draw down the water table and thus minimize the rate of inflow of groundwater.  The original topographic surface of the Los Gatos Silver Mine deposit ranges from 1,571 to 1,624 masl.  The natural water table was at 1,400 masl and inflows occur below 1,450 masl.  A series of 18 wells were drilled from surface to establish dewatering wells and piezometer stations.  Once underground development began, additional wells were drilled from underground bays to intercept groundwater within the rock mass before it flowed into the mine for the dual purpose of lowering the water table and reducing the temperature gradient in the mine.  Wells have been drilled and pumps installed in the NW and Central zones with more planned in the SE zones as the mine deepens.

The QP observes that mining productivity and mine development rates increase when the water table has been drawn down below the mining horizon in advance of excavations.

The Los Gatos Silver Mine deposit is situated within a regional aquifer, which poses significant challenges for controlling groundwater inflows into the underground workings.  The Los Gatos Silver Mine employs two dewatering systems to manage the groundwater:

• Conventional contact-water dewatering infrastructure.
• A network of dewatering wells.

The Mineral Reserve estimate is based on a detailed mine design and production schedule, both of which were developed using Deswik software.  The design process began with the establishment of key criteria for stope production and mine development, ensuring that the mining methods and development sequence align with the overall project objectives and economic constraints.

The Los Gatos Silver Mine employs two primary mining methods: CAF and LHS.  The selection between these methods is determined by the geotechnical characteristics of the mineralization and surrounding host rock.  These methods are implemented in either longitudinal or transverse orientations, depending on the vein width and geometry.

The mine infrastructure is as follows:

• Access and Underground Facilities: Access to the underground workings is provided through a system of ramps.  The Los Gatos Silver Mine has established an underground maintenance shop within a mined-out stope in the NW zone.
• Ventilation System: The mine utilizes a pull-type ventilation system.  Exhaust fans, installed at the collars of three return-air raises, draw spent air from the underground workings.  Fresh air enters the mine through the main ramp and two principal intake raises.
• Air-Cooling Infrastructure: The Los Gatos Silver Mine operates two dedicated air-cooling plants designed to regulate underground temperatures, maintaining safe and comfortable working conditions.
• Dewatering Infrastructure: The dewatering system at the Los Gatos Silver Mine consists of two components:

• Conventional Contact-Water Dewatering: This system collects water that enters the mine workings and pumps it to surface.
• Dewatering Wells: These wells extract groundwater from the aquifer, reducing the inflow into the underground workings.

• Safety Infrastructure: The safety infrastructure at the Los Gatos Silver Mine includes an escapeway raise to surface, a permanent refuge station, and three portable refuge chambers.
• Electric Power: The underground electrical power distribution system includes 19 mobile electrical substations (13,800/480 volts) and three fixed substations (13,800/4,160 volts).
• Underground Communications: The communication system includes a leaky feeder cable network, a fiberoptic backbone, a personnel location system, and video surveillance cameras.

The Los Gatos Silver Mine operates as a fully mechanized mine, utilizing rubber-tired, diesel-powered equipment for all phases of its mining operations.  The current fleet includes the following:

• Six two-boom, electric-hydraulic development jumbos
• One cable bolter and seven mechanized rock bolters
• Nine LHDs (Load-Haul-Dump), most equipped for remote-control mucking
• Seven mine trucks with a 40-t payload capacity
• Three production drill rigs (one top-hammer and two down-the-hole)

As of December 31, 2025, the mine department employed a total of 316 individuals.  The underground mine operates on a two-shift schedule, with each shift working 10-hours per day.  The workforce is organized into three rotational crews, each working 14 days on followed by 7 days off.  At any given time, two of the three crews are present onsite, ensuring continuous operation.

The current LOM plan projects that the Los Gatos Silver Mine will remain in operation for 9.4 years¹ from January 1, 2026, with production continuing until Q1 of 2035.  Over this period, the mine's average annual production is estimated at approximately 1.4 Mt. 

Processing and Recovery Operations

The processing plant at Los Gatos Silver Mine employs a conventional flotation-based process typical of base metal operations.  The installed plant capacity was originally designed for 2,500 tpd; however, recent throughput levels have increased to an average of 3,915 tonnes per calendar day from January to June 2025, with the 2025 LOM plan targeting an average of 3,950 tonnes per calendar day and a nominal rate of 4,100 tonnes per operating day.

The processing plant is built as a single train with the crushing area separated from the remaining sections.  The crushing circuit includes a jaw crusher, a semi autogenous grinding mill, and a ball mill, which collectively feed the flotation circuit.  The flotation process consists of lead and zinc flotation circuits, including rougher, regrind, and cleaner stages, followed by lead and zinc concentrate thickening and tailings thickening.

Since operations began in 2019, the primary sources of processed material have been the Central and NW zones.  Over the remaining Reserve life, increasing contributions from the SE zone are expected.  No significant changes in ore characteristics are anticipated, and the throughput and recovery assumptions applied for future processing are considered reasonable for the LOM.  The plant equipment sizing remains robust for the projected throughput.

In early 2023, a fluorine leach circuit was constructed and began operations in June 2023.  This circuit is designed to reduce fluorine content in the zinc concentrate to approximately 500 ppm, which has been consistently achieved.  Minor silver and zinc losses occur during the leaching process, which have been accounted for in plant production calculations.

Infrastructure, Permitting and Compliance Activities

Infrastructure

The Los Gatos Silver Mine is an operating mine with significant existing infrastructure in place supporting the operation, including offsite and onsite components.  Existing offsite infrastructure comprises grid power distribution to the mine and previously completed road upgrades to facilitate heavy equipment transport during construction, material deliveries and concentrate shipments, in addition to worker traffic.  On site infrastructure is comprised of office and maintenance facilities, processing facilities, a TSF, backfill plants, a refrigeration plant, a mine ventilation system, and dewatering ponds for sediment settling and water cooling.  The operation also includes two personnel camps.

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¹ The LOM stated in the Los Gatos Technical Report was 8.3 years from the effective date of the report, being July 1, 2024, with production until Q4 2032.  First Majestic has updated the LOM to reflect current information and Mr. Andrew Pocock, P.Eng., the Company’s Director, Technical Services, has assumed responsibility as a “Qualified Person” (as defined under NI 43-101) for the updated LOM reflected in this AIF.

In 2022, the Los Gatos Silver Mine entered into a power purchase agreement to source the entirety of the mine's energy from the solar energy producer Energía Solar de Poniente.  This agreement covers all electricity needs of the site, sourcing all site power from a photovoltaic power plant located in Matamoros, Coahuila.  In November 2025, MPR signed a new power purchase agreement with CFE for the provision of LNG-generated energy for the Los Gatos Silver Mine, commencing in March 2026.  Accordingly, since March 1, 2026, CFE has been the sole provider of all electricity for the Los Gatos Silver Mine, with such power being generated from LNG.

The underground mine operates three air extractive fans to exhaust spent air, with fresh air intake via the decline ramp and two downcast fresh air raises equipped with refrigeration plants and air coolers.  The current installed capacity of the ventilation system is 1.3 M cubic feet per minute, and plans are in place for an expansion to provide fresh air to the SE zone.

The mine dewatering system consists of both surface and underground infrastructure.  None of the dewatering wells drilled from surface are currently active, as the water table is now beneath the effective depth of those wells.  There are currently five main underground wells in the NW zone, with two more under development.  Two underground wells are present in the Central zone.  As the mine expands, capital has been allocated for the anticipated additional dewatering infrastructure in the NW, Central and SE zones that will be required to manage the water underground.

Site infrastructure in addition to production-related installations are typical of a mining operation of this scale, located some distance from supporting populations, and include a concrete batch plant, maintenance shops, administration and engineering building, mine dry for underground personnel, warehouse facilities, security guard house and gates, residential camps and cafeterias.

The Los Gatos Silver Mine TSF has been constructed, and tailings have been deposited in the facility since 2019. Regular dam raises have been constructed to increase the volume of the TSF.  The material used in the dam construction is mostly rockfill with some screened filter material. All TSF stages are built using local borrow materials, primarily rockfill excavated and blasted from foundation material within the TSF.  The TSF uses downstream construction methods.

The tailings dam has a composite liner consisting of geosynthetic clay liner overlain by a 1.5 mm (60-mil), Linear Low-density Polyethylene geomembrane.  The liner extends along the base of the impoundment and the embankment's upstream slope and anchored along the edges of each concurrent construction stage.  The lining system is placed on a 0.15 m thick bedding fill.

The original permitted TSF design consists of four Stages (I to IV) with an ultimate crest elevation of 1638.0 m.  However, due to a change in the tailings delivery rate to the TSF with the commissioning of the paste plant in the fourth quarter of 2022, the ultimate TSF is planned to have a maximum crest elevation of 1,636.0 m (Stage III) which is adequate for the revised and reduced volume of tailings to be stored based on the Mineral Reserve and LOM plan.

To date, five dam raises have been constructed to the existing crest elevation of 1,631 m.  The LOM plan requires one additional 7-metre raise to be built during 2027 to 2028 to a final maximum crest elevation of 1,638 m.  The most recent raise completed allows storage for 8.9 Mt of processed material starting September 2025 onwards.  40% of the tailings in the LOM are planned to be sent back to the mine in the form of paste backfill, while the remaining 60% will be sent to the TSF.

The TSF design criteria were established based on the facility size and risk using applicable dam safety and water quality regulations and industry best practice for the TSF embankment on a standalone basis.  The dam has a blanket drain in the foundation to control and reduce the water level in the dam due to any infiltration that could occur. Incorporating the blanket drain is expected to improve the stability of the embankment in the event of liner failure.  The TSF has an Operations, Maintenance, and Surveillance Manual that describes operating and monitoring procedures to confirm the condition of the embankment, foundation, and performance of the TSF dam and impoundment.  Regular TSF inspections are completed, including annual inspections by the Engineer of Record.

Permitting and Compliance

Mexico has established environmental laws and regulations that apply to the development, construction, operation and closure of mining projects, and the Company has management systems in place to ensure ongoing regulatory compliance.  Of particular importance are the air, surface water and groundwater quality monitoring programs.  An environmental compliance report is submitted annually to the Mexican environmental authority.  There are no outstanding violations issued by the environmental authority against MPR.

The Company has all material permits for the current operations.  The Company is waiting on the final resolution document for a permit regarding the use of treated water from the personnel camp sewage treatment facilities.  This pending permit document is not a material risk for the current operations at the Los Gatos Silver Mine.

MPR has produced several social baseline studies that collected information from official statistical sources, as well as interviews and participatory workshops with stakeholders and the local communities in the area of direct influence.  The social baseline study was updated in 2023, with consultations carried out in nine communities.  A detailed analysis to identify and characterize stakeholders was prepared.  The information obtained has been used to identify social impacts in the communities, as well as social risks for the mining operations.  The Company has mitigation measures in place for the highest priority social risks.

MPR has established a community relations office in the nearby town of San José del Sitio, which allows for a permanent point of contact between local communities and the mine.  MPR has established various commitments for the hiring of local labour, as well as in the acquisition of services during the life of the project, through agreements with stakeholders.  A total of 156 direct employees from the area of influence work for the Los Gatos Silver Mine.

A conceptual mine closure strategy was presented in the closure plan (Tetra Tech, 2018) that was submitted to the Mexican environmental authority.  The closure cost estimate was updated at the end of 2023 based on disturbance areas and 2023 local rates for closure activities such as haulage, demolition and removal.  The closure cost was estimated at $16.4 million.

Capital and Operating Costs

The projected amounts for sustaining capital in the LOM plan have been updated to an effective date of December 31, 2025 by First Majestic's QPs, as shown in Table 23 below, and relate to continuing underground mine development, installation of a copper-lead separation circuit, and two additional raises of the TSF dam, as well as other miscellaneous equipment and infrastructure projects.  Sustaining capital is estimated in 2025 dollars with no inflation or escalation considered.

Table 23: Los Gatos Mining Capital Costs Summary (Sustaining Capital) ($ Million)