A: We have been monitoring our market, as we received notification that our shares will be removed from the S&P/TSX Composite, effective after market close on Friday December 15th, as per its quarterly rebalance, measured, and announced in mid-November. The estimated outflow is approximately 8 million shares, on the TSX exchange. Additionally, the NYSE Arca Gold Miners Index (GDX ETF) announced its quarterly date of record on Friday December 8th that we were listed as an expected deletion as the Company’s market capitalization was below the US$450 million requirement level. The estimated outflow is approximately 11 million shares, on the NYSE, also effective after market close on Friday December 15th, 2023. While this news may be disappointing, we want to provide you with clear and transparent communication about these events.

As a reminder, the decision to remove our shares from these indices is predominantly based on market capitalization levels and trading volume criteria set by the index provider, not company fundamentals. Indexer trading patterns have little to do with market sentiment and are driven primarily by quantitative analysis. Deletion from indices can have a negative temporary impact on share price as this is a widely public and broadcasted event whereby certain investors and funds will position themselves ahead of the rebalance.

It's important to note that being removed from an index does not change the fundamental strength of our company. We continue to focus on our business strategies and growth initiatives to enhance shareholder value. Our team is dedicated to navigating the evolving market dynamics and ensuring the resilience of our business. Due to the cyclicality of our industry, this the second time that we have been added and removed from these indexes. As a management team, it is our job to execute on Terronera and hopefully get back into the Indexes in due course.

Additional information:

The S&P/TSX Composite Index is the benchmark index for the Canadian equity market. It is the broadest measure of the S&P/TSX family and tracks approximately 250 companies. For more information, visit: www.standardandpoors.com.

The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of approximately 50 publicly traded companies primarily involved in the mining of gold and silver globally, and it is the underlying index to the VanEck Vectors Gold Miners ETF (GDX). For more information, visit: www.nyse.com.

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