Outcrop Silver & Gold : Annual Information Form 2022

OUTCROP SILVER & GOLD CORPORATION

ANNUAL INFORMATION FORM

For the Year Ended August 31, 2021

December 22, 2021

CONTENTS
GLOSSARY OF GENERAL TERMS ..........................................................................................	4
PRELIMINARY NOTES ..............................................................................................................	6
Financial Statements and MD&A .....................................................................................	6
Effective Date of Information ...........................................................................................	6
Cautionary Note regarding Forward-Looking Information ................................................	6
Currency..........................................................................................................................	8
Cautionary Note to United States Investors Concerning Estimates of
Measured, Indicated and Inferred Resources ..................................................................	8
CORPORATE STRUCTURE ....................................................................................................	10
Name, Addresses and Incorporation .............................................................................	10
Intercorporate Relationships..........................................................................................	11
GENERAL DEVELOPMENT OF THE BUSINESS OF THE COMPANY...................................	11
Overview .......................................................................................................................	11
Recent Developments ...................................................................................................	11
Three Year History ........................................................................................................	13
Financial year ended August 31, 2019 ..........................................................................	13
Financial year ended August 31, 2020 ..........................................................................	14
Financial year ended August 31, 2021 ..........................................................................	15
Significant Acquisitions..................................................................................................	16
BUSINESS OF THE COMPANY...............................................................................................	17
General .........................................................................................................................	17
Stage of Development ...................................................................................................	17
Specialized Skill and Knowledge ...................................................................................	17
Competitive Conditions..................................................................................................	17
Components..................................................................................................................	17
Cycles ...........................................................................................................................	17
Economic Dependence .................................................................................................	18
Changes to Contracts....................................................................................................	18
Environmental Protection...............................................................................................	18
Employees ....................................................................................................................	18
Foreign Operations........................................................................................................	18
RISK FACTORS .......................................................................................................................	18
Negative Impacts by an Outbreak of Infectious Disease or Pandemic ...........................	19
Mining............................................................................................................................	19
Permitting ......................................................................................................................	20
Social and Environmental Activism................................................................................	20
Legal Proceedings.........................................................................................................	20
Foreign Country Risk.....................................................................................................	21
Foreign Operations........................................................................................................	21
Differing Interpretations in Tax Regimes in Foreign Jurisdictions...................................	22
Foreign Subsidiaries......................................................................................................	22
Government Regulation.................................................................................................	22
Seizure or Expropriation of Assets.................................................................................	22

Tax Matters ...................................................................................................................	23
No History of Profitability ...............................................................................................	23
Risks Associated with Mineral Markets..........................................................................	23
Risks with Title to Mineral Properties.............................................................................	23
Environmental Risks and Hazards.................................................................................	24
Natural Disasters, Geopolitical Instability or Other Unforeseen Events..........................	24
Risks Associated with Potential Acquisitions .................................................................	24
Competition and Scarcity of Mineral Lands....................................................................	25
Future Profits/Losses and Production Revenues/Expenses...........................................	25
Personnel; Equipment ...................................................................................................	25
Insurance ......................................................................................................................	26
Infrastructure .................................................................................................................	26
Financing.......................................................................................................................	26
Currency Risk................................................................................................................	26
Market for Securities......................................................................................................	26
Price Volatility of Publicly Traded Securities ..................................................................	27
Unlimited Number of Authorized but Unissued Shares ..................................................	27
Stress in the Global Economy .......................................................................................	27
Information Technology .................................................................................................	27
Cybersecurity Incidents and Technological Disruptions .................................................	28
Climate Change.............................................................................................................	28
Conflicts of Interest........................................................................................................	28
MINERAL PROJECTS - SANTA ANA PROJECT ...................................................................	28
Project Description, Location and Access......................................................................	29
Property Location...............................................................................................	29
Legal Framework ...............................................................................................	32
Environmental Liabilities ....................................................................................	33
Surface Rights ...................................................................................................	33
Santa Ana Project Agreement............................................................................	34
Santa Ana Mining Rights....................................................................................	34
Royalties............................................................................................................	34
Accessibility, Climate, Local Resources, Infrastructure & Physiography ........................	34
Property History.............................................................................................................	35
Historical Exploration Programmes ....................................................................	35
Historical Drilling ................................................................................................	36
Historical Resources ..........................................................................................	36
Historical Production ..........................................................................................	36
Geological Setting .........................................................................................................	36
Regional Geography ..........................................................................................	36
Local Geography................................................................................................	37
Mineralisation.....................................................................................................	37
Deposit Types ...............................................................................................................	37
Exploration ....................................................................................................................	38
Red Eagle Exploration 2018 Exploration Programme ........................................	39
Drilling ...........................................................................................................................	40
Megapozo..........................................................................................................	46
QA/QC47
Sample Preparation, Analyses and Security..................................................................	47
CPM 2012-2014 Sample Security and Preparation ............................................	47
Red Eagle Exploration 2018 Sample Security and Preparation..........................	48

CPM Assay Procedures 2012-2014 ...................................................................	48
Red Eagle Assay Procedures 2018 ...................................................................	48
Antediluvial Sampling 2019................................................................................	48
Data Verification ............................................................................................................	49
Doublewood Data Verification 2012 ...................................................................	49
Environmental Studies, Permitting & Social or Community Impact ................................	50
NON-MATERIAL PROPERTIES...............................................................................................	50
Colombia - Antares Project............................................................................................	50
Colombia - Argelia Project ............................................................................................	51
Colombia - Mallama Project..........................................................................................	52
Colombia - Oribella Project ...........................................................................................	52
Alaska - Renshaw Royalty ...............................................	Error! Bookmark not defined.
DIVIDENDS AND DISTRIBUTIONS .........................................................................................	52
DESCRIPTION OF CAPITAL STRUCTURE.............................................................................	53
MARKET FOR SECURITIES....................................................................................................	53
Trading Price and Volume .............................................................................................	53
PRIOR SALES..........................................................................................................................	54
DIRECTORS AND OFFICERS .................................................................................................	54
Name, Occupation and Security Holdings .....................................................................	54
Cease Trade Orders, Bankruptcies, Penalties or Sanctions ..........................................	55
Conflicts of Interest........................................................................................................	56
LEGAL PROCEEDINGS AND REGULATORY ACTIONS .......................................................	56
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS...................	57
TRANSFER AGENT AND REGISTRAR...................................................................................	57
INTERESTS OF EXPERTS ......................................................................................................	57
AUDIT COMMITTEE INFORMATION.......................................................................................	58
Audit Committee Information .........................................................................................	58
Composition of the Audit and Finance Committee .........................................................	58
Relevant Education and Experience..............................................................................	58
Audit Committee Oversight............................................................................................	59
Reliance on Certain Exemptions....................................................................................	59
Pre-Approval Policies and Procedures ..........................................................................	59
External Auditor Service Fees (By Category).................................................................	60
MATERIAL CONTRACTS ........................................................................................................	60
ADDITIONAL INFORMATION..................................................................................................	60
Schedule "A" - Audit and Finance Committee Information

4

GLOSSARY OF GENERAL TERMS

In this AIF, unless otherwise defined in the body of this AIF, the following capitalized words and terms have the following meanings:

Affiliate:	A company is an "Affiliate" of another company if:
	(a)	one of them is the subsidiary of the other; or
	(b) each of them is controlled by the same Person;
AIF:	means this Annual Information Form;
ANM:	means the Agencia Nacional de Mineria;
Associate:	means, when used to indicate a relationship with a Person,
	(a) a partner, other than a limited partner, of that Person;
	(b) a trust or estate in which that Person has a substantial
		beneficial interest or for which that Person serves as
		trustee or in a similar capacity;
	(c) an issuer in respect of which that Person beneficially
		owns or controls, directly or indirectly, voting securities
		carrying more than 10% of the voting rights attached to
		all outstanding voting securities of the issuer, or
	(d) a relative, including the spouse, of that Person or a
		relative of that Person's spouse, if the relative has the
		same home as that Person;
Board:	means the Board of Directors of the Company;
Common Shares:	means the common shares of the Company;
company:	unless specifically indicated otherwise, means a company,
	incorporated association or organization, body corporate,
	partnership, trust, association or other entity other than an
	individual;
Control Person:	means any person or company that holds or is one of a
	combination of persons or companies that holds a sufficient
	number of any of the securities of an issuer so as to affect
	materially the control of that issuer, or that holds more than 20%
	of the outstanding voting securities of an issuer except where
	there is evidence showing that the holder of those securities does
	not materially affect the control of the issuer;
Exchange:	means TSX Venture Exchange;
Insider:	if used in relation to an issuer, means:
	(a) a director or senior officer of the issuer;