Prismo Metals : 2024 Q1 Management’s Discussion and Analysis

PRISMO METALS INC.

(An Exploration Stage Company)

Interim Management's Discussion and Analysis (MD&A)

Quarterly Highlights

Three months ended March 31, 2024

(Expressed in Canadian Dollars)

Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

The following interim Management's Discussion and Analysis ("Interim MD&A") of Prismo Metals Inc. (the "Company" or "Prismo") for the three months ended March 31, 2024 has been prepared to provide material updates to the business operations, liquidity and capital resources of the Company since its last annual management discussion & analysis, being the Management's Discussion & Analysis ("Annual MD&A") for the year ended December 31, 2023. This Interim MD&A does not provide a general update to the Annual MD&A, or reflect any non-material events since the date of the Annual MD&A.

This Interim MD&A has been prepared in compliance with section 2.2.1 of Form 51-102F1, in accordance with National Instrument 51-102 - Continuous Disclosure Obligations. This discussion should be read in conjunction with the Annual MD&A, audited annual consolidated financial statements of the Company for the year ended December 31, 2023, and year ended December 31, 2022, together with the notes thereto, and unaudited condensed interim consolidated financial statements of the Company for the three months ended March 31, 2024, together with the notes thereto. Results are reported in Canadian dollars, unless otherwise noted. The Company's unaudited condensed interim consolidated financial statements and the financial information contained in this Interim MD&A are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and interpretations of the IFRS Interpretations Committee. The unaudited condensed interim consolidated financial statements have been prepared in accordance with International Standard 34, Interim Financial Reporting. Accordingly, information contained herein is presented as of May 27, 2024, unless otherwise indicated.

For the purposes of preparing this Interim MD&A, management, in conjunction with the Board of Directors (the "Board"), considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company common shares; (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the Board, evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.

Further information about the Company and its operations is available on the Company's website at www.prismo.caor on SEDAR+ at www.sedarplus.ca.

This Interim MD&A contains forward-looking information as further described in the "Cautionary Note Regarding Forward-Looking Statements" at the end of this Interim MD&A. Please also make reference to those risk factors identified or otherwise indirectly referenced in the "Risks and Uncertainties" section below.

Description of Business and Nature of Operations

Prismo Metals Inc. was incorporated under the provisions of the Canada Business Corporations Act on October 17, 2018, as 11047612 Canada Inc., renamed as Prismo Metals Inc. on November 1, 2018, and registered as an extra-provincial corporation under the laws of the Province of British Columbia on November 6, 2018.

The Company is in the business of acquisition, exploration, and development of mineral properties, and is in one operating segment, namely mineral exploration in Mexico and Arizona, USA.

Financial and Operating Highlights

Corporate

On April 5, 2024, the Company announced that it completed a debt settlement agreement with certain creditors of the Company issued an aggregate of i) 2,833,692 common shares of the Company at a price of $0.17 per common share in full and final settlement of accrued and outstanding indebtedness in the aggregate amount of $552,570 (the "Debt Settlement"). Almost sixty percent of the shares issued were issued to Prospeccion y Desarrollo Minero del Norte SA de CV ("ProDeMin"), (a total of 588,235 common shares) an exploration services company located in Mexico and controlled by our President & CEO Dr. Gibson; to Walnut Mines LLC, an Arizona based company which owns the Hot Breccia project (a total of 832,571 common shares), and as consideration of an option payment to the 25% stake owner of the Palos Verdes property (a total of 200,000

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

common shares).

In addition, the Company announced it completed a non-brokered private placement for one subscription of 754,411 units of the Company at a price of $0.17 per unit for total gross proceeds of $128,250. Each unit consists of one common share and one-half common share purchase warrant. Each warrant is exercisable for one additional common share at an exercise price of $0.25 for a period of 24 months.

On April 9, 2024, the Company granted 550,000 incentive stock options, to certain consultants of the Company subject to certain vesting requirements. Each stock option is exercisable upon vesting into one common share of the Company at a price of $0.20 per option Share, for a period of five years. Vesting of the options is as follows: 1/4 on the date which is 3 months after the date of grant and 1/4 every 3 months thereafter.

The Company also granted 200,000 RSUs to consultants of the Company under the terms of the Company's long-term incentive plan. Vesting of the RSUs are as follows: 1/4 on the date which is the 3 months after the date of grant, and 1/4 every 3 months thereafter.

The Company granted 550,000 SARs to consultants of the Company. 400,000 SARs are exercisable for a period of five years at a price of $0.20, and 150,000 SARs are exercisable for a period of two years at a price of $0.20. Vesting of the SARs are as follows:1/4 on the date which is the 3 months after the date of grant, and 1/4 every 3 months thereafter.

On April 11, 2024, 462,500 vested RSUs were settled by the issuance of common shares. On April 30, 2024, 37,500 vested RSUs were settled by the issuance of common shares.

On May 1, 2024, the Company announced the appointments of Steve Robertson as President of the Company, Alain Lambert as the Chief Executive officer (CEO) and Craig Gibson as the Chief Exploration officer (CXO).

Trends and Economic Conditions

• Prices of minerals are extremely volatile and there are times when there is very limited availability of equity financing for the purposes of mineral exploration and development.
• The Company's future performance is largely tied to the outcome of future drilling results and the overall financial markets; and
• Current financial markets are likely to be volatile in Canada for the calendar 2024, reflecting ongoing economic concerns due to inflation and the war in Ukraine and overseas. The actual and perceived impacts of these and other macro influences may have a material adverse effect on the global economy and on the stock market, including trading prices of the Company's shares and its ability to raise new capital. Companies worldwide have been negatively affected by these trends. As a result, the Company may have difficulties raising equity financing for the purposes of base and precious metals exploration and development, particularly without excessively diluting the interest of current shareholders of the Company.

These trends may limit the Company's ability to discover and develop an economically viable mineral deposit. See "Cautionary Note Regarding Forward-Looking Statements" and "Risk and Uncertainties" below.

Outlook

The Company intends to continue exploring properties that have the potential to contain precious metals in its properties located in Mexico and base metals in its property located in Arizona, USA. In addition, management will review project submissions, and conduct independent research, for projects in such jurisdictions and commodities as it may consider prospective. In our forward planning for the 2024 year, we recognized that economic uncertainties and market challenges are factors that need to be considered.

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

Financial Highlights

Three months ended March 31, 2024, compared with three months ended March 31, 2023

The Company's net loss totaled $57,194 for the three months ended March 31, 2024, with basic and diluted loss per share of $0.00. This compares with a net loss of $117,657 with basic and diluted loss per share of $0.00 for the three months ended March 31, 2023. The Company had no revenue in both periods presented.

The decrease in net loss was principally due to:

• Share-basedpayments decreased in the three months ended March 31, 2024, to $66,065 compared with $317,958 for the three months ended March 31, 2023. The decrease is due to the timing of expensing the estimated fair value of stock options, SARs and RSUs granted in prior and current periods. The Company expenses its stock options, SARs and RSUs in accordance with the vesting terms of the stock options, SARs and RSUs granted.
• Marketing decreased in the three months ended March 31, 2024, to $,36,860 compared with $124,779 for the three-month ended March 31, 2023. The variance is driven by decrease in the utilization of the marketing firm engaged by the Company in the prior year to create and expand market awareness.
• Travel, meals and conventions decreased in the three months ended March 31, 2024, to $47,657 compared with $77,956 for the three months ended March 31, 2023. The decrease is due to reduced travelling expenses due to the strategic investment with Vizsla and Hot Breccia property substantially completed in the prior year.
• Consulting fees decreased in the three months ended March 31, 2024, to $14,175 compared with $85,128 for the three months ended March 31, 2023. The decrease is due to the strategic investment with Vizsla and Hot Breccia property which was substantially completed in the prior year.
• Conference and investor relations for the three months ended March 31, 2024 was $6,720 compared to $27,065 for the three months ended March 31, 2023. The decrease is due to an investor relations firm that was engaged by the Company with a one-year contract in the prior period to create and expand market awareness.
• Professional fees for the three months ended March 31, 2024, was $12,718 compared to $16,673 for the three months ended March 31, 2023. The decrease is mainly due to decrease in utilization of audit fees.
• Realized gain on marketable securities increased in the three months ended March 31, 2024, to $60,160 compared with $nil for the three months ended March 31, 2023. The increase in realized gain was due to the sale of 250,000 common shares of Vizsla during the period.
• Unrealized gain on marketable securities decreased in the three months ended March 31, 2024, to $82,500 compared with $570,000 for the three months ended March 31, 2023. The decrease in unrealized gain was due to change in fair value of marketable securities acquired during the current period.
• All other expenses were related to general working capital purposes.

The Company's total assets as of March 31, 2024, were $7,046,899 (December 31, 2023 - $7,293,894) against total liabilities of $1,101,405 (December 31, 2023 - $1,391,271). The decrease in total assets of $246,995 resulted from operating costs which was offset by investment in exploration and evaluation assets. The Company does not have sufficient current assets to pay its existing liabilities of $1,101,405 on March 31, 2024. However, subsequent to March 31, 2024, the Company completed a debt settlement agreement in the aggregate amount of $552,570 and completed a non-brokered private placement of $128,250.

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

Liquidity and Capital Resources

From management's point of view, the Company has cash of $67,987 and marketable securities of $945,000 as of March 31, 2024, and additional financing will be required to fund future exploration and to cover current expenditures.

The Company may, from time to time, when marketing and financing conditions are favourable, proceed with fundraising to fund exploration and property acquisition projects.

The activities of the Company, principally the acquisition and exploration of properties that have the potential to contain precious and base metals, are financed through the completion of equity transactions such as equity offerings and the exercise of stock options. There is no assurance that equity capital will be available to the Company in the future in the amounts or at the times desired or on terms that are acceptable to the Company, if at all. See "Risk and Uncertainties" below.

As of March 31, 2024, and to the date of this Interim MD&A, the cash resources of the Company are held with certain Canadian chartered banks.

Regardless of whether the Company discovers a significant silver deposit, given its working capital of $31,473 as of March 31, 2024, it is anticipated that the Company would need to inject funds for it to continue operations for the twelve-month period ending March 31, 2024.

Cash Flows

As of March 31, 2024, the Company had cash of $67,987. The decrease in cash of $64,805 from December 31, 2023 cash balance of $132,792 was a result of cash outflows in operating activities of $246,014, cash inflows in investing activities of $158,209 and cash inflows in financing activities of $23,000.

Operating activities were affected by adjustments of fair value adjustment on marketable securities of $82,500, share-based payments of $66,065, realized gain on marketable securities of $60,180 and net change in non- cash working capital balances of $112,205 because of an increase in receivables of $7,544, a decrease in prepaid expenses of $23,905, a decrease in accounts payable and accrued liabilities of $79,575 and a decrease in due to related parties of $48,991.

Cash provided by investing activities was $158,209 for the three months ended March 31, 2024. This cash related to proceeds from sale of marketable securities of $465,180 which was offset by cash used for exploration and evaluation assets of $306,971.

Cash provided by financing activities was $23,000 for the three months ended March 31, 2024. Financing activities were affected by the shares subscription received in advance of $34,000 which was offset by loan repayment of $11,000.

Mineral Properties Update

Mineral Properties

The Company has option agreements with respect to two mineral exploration projects in Mexico (Palos Verdes and Los Pavitos), and one mineral exploration project in Arizona, USA, as follows:

1. Palos Verdes project
   Palos Verdes is an intermediate stage exploration project located about 65km northeast of Mazatlán in Sinaloa State, Mexico and is accessed via the interstate highway from Mazatlán to Durango near the village of Santa Lucía. The property consists of one concession, Palos Verdes, comprising 22.7707 hectares (the "Palos Verdes Property"). The Palos Verdes Property is within the Pánuco-Copala mining district, a historically important mining area in the region. Numerous small mines and prospects are located in the

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

region with several intermittently active mines and mills. The district is known for precious- and base-metal bearing epithermal veins.

On May 7, 2019, the Company entered into an option agreement with Prospeccion Y Desarrollo Minero Del Norte, S.A. de C.V., a company incorporated under the laws of Mexico ("ProDeMin") and carrying mineral exploration contracting activities and controlled by the CXO of the Company (the "ProDeMin Option") to earn up to 75% interest in the Palos Verdes Property. On November 30, 2020, the Company entered into an option agreement with the underlying owner of the remaining 25% of the Palos Verdes Property (the "Palos Verdes 25% Agreement"), thus securing the possibility of earning up to 100% interest in the property.

The Company has undertaken several drill campaigns at the project and a total of about 6,052 meters has been drilled in 33 holes to date, including 5 holes drilled by ProDeMin in 2018, shown in the table below.

Table 1. Drill hole data for past drilling and Prismo's drill holes.

Hole	Easting	Northing	Elev.	Azimuth	Inclination	Depth (m)
PV‐18‐01	413,759	2,593,160	1,222	318	‐50°	80.00
PV‐18‐02	413,762	2,593,161	1,222	318	‐75°	120.10
PV‐18‐03	413,762	2,593,160	1,222	280	‐45°	63.00
PV‐18‐04	413,759	2,593,160	1,222	270	‐65°	100.00
PV‐18‐05	413,607	2,593,040	1,257	335	‐60°	94.00
2020 drill campaign
PV‐20‐06	413,767	2,593,146	1,207	330	‐75°	101.40
PV‐20‐07	413,768	2,593,146	1,207	355	‐60°	104.40
PV‐20‐08	413,765	2,593,098	1,208	345	‐60°	125.40
PV‐20‐09	413,764	2,593,099	1,208	330	‐50°	107.40
PV‐20‐10	413,597	2,592,994	1,240	10	‐55°	134.40
2022 drill campaign
PV‐22‐11	413,761	2,593,096	1,209	355	‐82	393.00
PV‐22‐12	413,759	2,593,095	1,209	325	‐75	207.00
PV‐22‐13	413,758	2,593,094	1,209	300	‐80	300.00
PV‐22‐14	413,610	2,529,919	1,230	330	‐75	303.00
PV‐22‐15	413,607	2,529,918	1,230	15	‐80	337.50
PV‐22‐16	413,767	2,593,098	1,209	70	‐60	288.00
PV‐22‐17	413,765	2,593,148	1,205	340	‐50	115.00
PV‐22‐18	413,770	2,593,149	1,205	40	‐50	156.00
2023 drill campaign
PV‐23‐19	414,023	2,593,310	1,313	326	‐44	93.00
PV‐23‐20	414,049	2,593,296	1,296	324	‐59	201.00
PV‐23‐21	414,004	2,593,260	1,294	330	‐45	160.00
PV‐23‐22	414,008	2,593,262	1,294	330	‐60	129.00
PV‐23‐23	413,963	2,593,219	1,261	300	‐45	144.00
PV‐23‐24	413,806	2,593,118	1,226	315	‐70	201.00
PV‐23‐25	413806	2593083	1236	320	‐68	258.00
PV‐23‐26	413,807	2,593,082	1,236	10	‐45	327.00
PV‐23‐27	413,814	2,593,082	1,226	320	‐75	234.00
PV‐23‐28	413,801	2,593,136	1,244	35	‐60	117.00
PV‐23‐29	413,735	2,593,073	1,216	330	‐75	183.00
PV‐23‐30	413,707	2,592,990	1,202	330	‐50	180.00
PV‐23‐31	413,709	2,592,990	1,200	330	‐75	246.00
PV‐23‐32	413,677	2,592,942	1,211	315	‐50	199.50
PV‐23‐33	413,678	2,592,938	1,216	330	‐75	250.50

Coordinates in UTM WGS84 from a handheld GPS

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

The results of the Company's drilling are shown in the following table, along with the results from the previous drilling by ProDeMin.

Assay highlights for holes drilled at the Palos Verdes Project
		From	To	Width	Est True	Au		Cu	Pb	Zn	Ag eq
	Hole	(m)	(m)	(m)	width (m)	(g/t)	Ag (g/t)	(%)	(%)	(%)	g/t
	ProDeMin holes (previously released)
	PV‐01	23.90	28.80	4.90	4.2	0.89	31	0.21	0.30	2.63	228
	PV‐02	40.35	48.70	8.35	5.5	1.69	474	0.54	1.09	3.84	840
	incl.	45.25	48.70	3.45	2.3	3.75	1098	0.67	1.99	3.00	1,650
	incl.	46.55	47.70	1.15	0.8	8.42	2336	0.27	1.72	2.46	3,205
	PV‐03	31.30	40.65	9.35	7.0	1.45	15	0.05	0.11	1.04	180
	incl.	39.55	40.65	1.10	0.8	12.15	50	0.26	0.53	5.01	1,280
	PV‐04	55.45	59.00	3.55	3.0	0.12	37	0.31	0.12	0.74	111
	PV‐05	54.25	57.40	3.15	2.0	0.25	23	0.06	0.32	0.62	82
	Prismo holes
	PV‐06	70.55	75.85	5.3	3.2	0.13	69	0.14	0.12	0.29	108
		75.00	75.85	0.85	0.5	0.46	317	0.12	0.09	0.21	378
	PV‐08	92.70	96.05	3.35	2.5	0.24	17	0.09	0.19	0.58	73
		92.70	93.65	0.95	0.7	0.55	37	0.24	0.61	1.21	169
	PV‐09	87.10	88.95	1.85	1.3	0.73	38	0.19	0.61	3.89	270
	PV‐10	125.30	126.50	1.20	0.9	0.03	6	0.06	0.03	1.4	77
	PV‐11	114.85	115.55	0.7	0.42	4.18	207	0.02	0.02	0.02	553
	PV‐12	117.9	118.8	0.9	0.54	3.18	13	0.01	‐	‐	276
	PV‐13	118.5	120.0	1.5	0.9	0.66	93	‐	‐	‐	148
	PV‐14	165.0	172.2	7.2	4.3	0.06	21	0.08	0.49	0.85	77
	Incl	169.4	171.0	1.6	2.5	0.07	28	0.12	0.52	1.01	88
		179.9	184.2	4.3	2.6	0.03	27	0.41	0.81	1.01	92
		193.0	195.9	2.9	1.7	0.05	12	0.27	0.14	1.88	93
	Incl	194.1	195.9	1.8	1.1	0.07	14	0.36	0.13	2.80	133
	PV‐15	238.5	243.0	4.5	2.7	0.18	43	0.29	0.36	1.60	131
		263.5	272.5	9	5.4	1.02	16	0.23	1.10	1.41	187
	Incl	266.45	272.5	6.05	3.6	0.91	22	0.33	1.61	2.04	222
	PV‐19	Anomalous Ag
	PV‐20	2.99	3.90	0.91	0.90	1.58	58	‐	0.01	0.01	189
	PV‐21	Anomalous Au & Ag
	PV‐24	120.05	123.90	2.85	2.00	0.87	43	0.07	0.04	1.46	178
	Incl.	121.40	122.60	1.20	0.84	1.84	95	0.05	0.05	1.26	302
		150.22	152.85	2.63	1.83	3.30	32	0.14	0.40	1.57	384
	Incl.	150.22	150.92	0.70	0.49	11.9	60	0.20	0.75	3.93	1,234
	PV‐25	78.70	79.00	0.30	‐	1.36	384	0.11	0.15	0.27	512
		134.10	135.45	1.35	‐	38.2	1,157	0.08	0.06	0.10	4,311
	Incl.	134.60	135.10	0.50	‐	102.0	3,100	0.20	0.17	0.26	11,520
	PV‐27	0.90	1.30	0.40	0.10	0.22	107	‐	0.02	0.02	126.2
	PV‐32	109.40	111.60	2.20	1.41	0.16	17.5	0.27	0.92	1.30	115.4
		111.30	111.60	0.30	0.19	0.83	45.0	0.68	4.32	4.67	333.9
		150.10	155.65	5.55	3.57	0.20	20.7	0.16	0.61	1.09	103.8
		155.25	155.65	0.40	0.26	0.04	17	0.21	3.56	6.03	391.5
		225.65	226.40	0.75	0.26	0.03	94.8	2.28	0.31	3.39	253.4
		225.95	226.40	0.45	0.14	0.04	144	3.65	0.45	5.12	382.2

*Silver equivalent values are calculated using the following metals prices: Au, US$1,750/oz, Ag, $21.24/oz, Pb, $0.97/lb and Zn, $1.34/lb. Cu was not used in the calculation, and metallurgical recoveries were not considered as there is no data available for the Palos Verdes vein. True width estimated from hole inclination and estimated vein dip, where known.

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

Drilling at Palos Verdes has intersected what the Company believes is the upper part of a mineralized shoot typical of the veins in the Panuco district. Several bonanza grade intercepts have been reported, including the exceptional interval of 3,100 g/t Ag, 102 g/t Au (11,520 g/t Ag equivalent) over 0.5 m in hole PV-25, and 2336 g/t Ag with 8.42 g/t Au and 2.46% Zn (xx g/t Ag equivalent) over 1.15 m in hole PV-02. Work completed in 2023 indicates that this mineralized body may be cut off and down dropped along a fault on the east.

On Nov 24, 2022, the Company announced that Vizsla signed an LOI to complete a strategic investment in Prismo, including a first right of refusal on the Palos Verdes concession. The Strategic investment would include a cash payment of 500,000 and issuance of $1.5 million in Vizsla shares for 4,000,000 units of Prismo, with each unit consisting of one share and one half of one purchase warrant. This agreement also contemplated the formation of a joint Technical Committee consisting of one member of each company and one additional member acceptable to both parties. The agreement also gives Vizsla the right to nominate one director to Prismo's board of directors and allows for Vizsla to maintain its percentage equity position with future financing.

On December 5, 2022, the Company announced a brokered private placement of $3,016,000, consisting of 5,800,000 units at a price of $0.52. Each unit consisted of one common share and one half of a common share purchase warrant exercisable at a price of $0.75 for three years following the closing. The Company announced the closing of the private placement on Dec. 12.

On January 9, 2023 the Company signed the definitive Strategic Investment agreement with Vizsla previously announced on Dec. 19, 2022.

The Company is planning a deeper drill program from adjoining ground controlled by its Strategic Investment Partner Vizsla Silver to test for the extension of high-grade mineralization encountered at shallow depths as well as the possible down dropped extension of this body to the northeast.

1. Los Pavitos project and the Cascabel Option
   Los Pavitos is an early-stage exploration project located in the Álamos area of Sonora State, Mexico. The project consists of one concession, Los Pavitos Reducción, that covers 5,289 hectares. The concession is located on the paved highway between Navajoa and Álamos at about the 17 km marker, and the main mineralized area is about 6 km North of the highway and can be reached by unmaintained dirt roads that access local ranches. Several interior concessions owned by third parties cover mineralized occurrences within the boundaries of the Los Pavitos concession.
   Mineralization at Los Pavitos consists of quartz veins and stockworks hosted in metasediments, in shear zones and parallel to foliation and crossing foliation. Three mineralized trends have been recognized through limited exploration that has been carried out. Two trends, the NE Santa Cruz trend and the NW Las Auras trend intersect in an area of small mines and prospects on the internal concessions mentioned previously and extend onto the Los Pavitos concession. The NE Omuri trend is parallel to the Santa Cruz trend about two kilometers to the northwest of the intersection of the other trends, and also intersect the La Auras trend.
   On October 11, 2019, the Company entered into an option agreement (the "Cascabel Option") with Minera Cascabel S,A. de C.V. ("Cascabel"). Pursuant to the terms of the Cascabel Option, Cascabel granted the Company an option to earn up to 100% in the Los Pavitos concession, located in the state of Sonora, Mexico, over a period of five years. On March 19, 2021, the Company received an NI 43-101 Technical Report on the Los Pavitos property, commissioned as one of the requirements of the Cascabel Option Agreement. This report, titled "Geology and Exploration of the Los Pavitos Property, Municipality of Alamos, Sonora State, Mexico" and dated March 18, 2021, is available on SEDAR+. The report concluded that Los Pavitos has potential for both Epithermal Gold-Silver veins and Orogenic (Shear-hosted) Gold deposits. Epithermal veins are the most abundant mineralization style in the area, and several have been located in Los Pavitos. The project is hosted by Mesozoic metasediments that are part of older terranes that underlie much of Northwest Mexico and these rocks have been regionally sheared and later intruded by plutons of intermediate composition. Rocks of similar composition and history host several large Orogenic Gold deposits that have been discovered elsewhere in western Sonora and the Company believes Los Pavitos is also prospective for them.

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

The NI 43-101 Technical Report recommended more work to ascertain the dominant mineralization styles at Los Pavitos through a preliminary exploration program consisting of project and target scale geologic mapping and sampling starting in the areas of known gold mineralization with the goal of projecting the geology laterally into areas with partial to completer cover.

Mapping and surface sampling over the last year and a half have delineated several kilometer-long mineralized structures with initial drilling at the Santa Cruz Southeast target to be followed by drilling of the Las Auras, Oromuri and Española targets. At Las Auras surface sampling has encountered high grade gold values in several areas, and the latter two targets have characteristics indicating that similar high-grade mineralization may exist beneath cover. The abundance of sulphides at very shallow depths in the initial high-grade holes has led to consideration of geophysical surveys to trace such structures through cover. Exploration work is also advancing to develop additional new areas for drilling in several areas identified during reconnaissance work.

The Company undertook a diamond drilling program at the project in 2023; a total of 2,370 meters were drilled in 25 shallow holes as shown in the following table.

Drill hole data for the Phase I program at the Los Pavitos project

Hole	Target	Easting	Northing	Elev	Azim	Incl	Depth (m)
LPSC-23-01	Hedionda mine	677,103	3,002,113	215	310	-45	27.70
LPSC-23-02	Hedionda mine	677,109	3,002,109	207	310	-55	87.00
LPSC-23-03	Hedionda mine	677,082	3,002,157	201	130	-45	60.00
LPSC-23-04	Hedionda mine	677,082	3,002,157	201	130	-60	75.00
LPSC-23-05	Hedionda mine	677,109	3,002,109	207	270	-45	75.00
LPSC-23-06	Hedionda mine	677,060	3,002,060	210	325	-45	72.00
LPSC-23-07	Hedionda mine	677,048	3,002,147	202	130	-45	81.00
LPSC-23-08	Hedionda mine	677,055	3,002,147	205	160	-45	109.50
LPSC-23-09	Santa Cruz SE	676,953	3,001,754	255	140	-45	110.00
LPSC-23-10	Santa Cruz SE	677,118	3,001,736	245	320	-45	123.00
LPSC-23-11	Santa Cruz West	676,885	3,001,875	232	305	-45	114.00
LPSC-23-12	Santa Cruz West	676,815	3,001,873	239	133	-55	63.00
LPSC-23-13	Santa Cruz West	676,798	3,001,887	247	140	-60	108.00
LPSC-23-14	Santa Cruz West	676,700	3,001,736	232	130	-50	71.00
LPSC-23-15	Santa Cruz West	676,700	3,001,736	232	130	-50	132.00
LPSC-23-16	Santa Cruz West	676,700	3,001,736	232	130	-50	96.00
LPAU-23-01	Las Auras	674,692	3,003,822	192	210	-45	50.00
LPAU-23-02	Las Auras	674,692	3,003,822	192	210	-60	75.00
LPAU-23-03	Las Auras	674,692	3,003,822	192	260	-45	151.50
LPAU-23-04	Las Auras	674,712	3,003,803	190	210	-47	144.00
LPAU-23-05	Las Auras	674,779	3,003,830	180	210	-45	171.00
LPAU-23-06	Las Auras	675,339	3,003,664	190	200	-45	57.80
LPAU-23-07	Las Auras	674,884	3,003,271	175	185	-45	52.50
LPOR-23-01	Oromuri	674,420	3,002,616	196	314	-45	162.00
LPES-23-01	La Española	675,390	3,002,811	202	290	-47	102.00

Coordinates in UTM WGS84 using handheld Garmin GPS

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Prismo Metals Inc.

Interim Management's Discussion & Analysis - Quarterly Highlights

Three Months Ended March 31, 2024

Dated: May 27, 2024

The assay results for the drill holes are shown in the following table. The holes targeted the Hedionda mine zone along the Santa Cruz structure, other parts of the Santa Cruz and Souteast structures, Las Auras, Orimuri and La Espanola. At La Hedionda, the holes were designed to determine the overall nature, geometry and lateral and vertical continuity of mineralization around this small historic working. Mineralization consisting of foliation-parallel sulphides surrounded by silicification was cut in several holes. The best hole, LP-SC-23-02,intersected 6.65 meters (core length) reporting 10.2 g/t gold and 47.0 g/t silver, within a wider interval of 11.93 meters (core length) averaging 5.77 g/t gold and 28.7 g/t silver.

At Las Auras the highlight hole was LP-AU-23-01, the first hole ever drilled at this target, which intersected

3.58 g/t gold over 1.15 meters (core length) within a wider interval of 3.65 m (core length) with 2.33 g/t gold and 87.6 g/t silver. Adding these results to the high gold reported in the first drilling at the Mina Hedionda in the Santa Cruz zone shows that significant gold grades are being encountered across the property.

Also notable are the results for hole LP-SE-23-09 drilled on the Southeast Santa Cruz structure (that also showed this gold plus silver signature, intersecting 106g/t silver with 0.51 g/t gold over 5.27 meters (core length). The Southeast Santa Cruz structure also has a relatively silver rich surface expression. Several of the remaining holes reported here intersected wide zones of anomalous gold mineralization, including 40.8 meters (core length) with 0.16 g/t Au in hole LP-SC-23-12.

Additionally, a new zone with several structures was identified and sampled in the previously unexplored Northeastern portion of the project area. Surface sampling along the northeastern projection of the gold and silver-rich Santa Cruz structure (See Press Releases of October 17th and December 5th, 2023) yielded the highest silver assay from the project to date: 1,130 g/t Ag, with 1.33 g/t Au over 0.15 meter. Other results from this new work area include numerous samples reporting anomalous gold and the pathfinder elements arsenic and bismuth (As and Bi) (Table 1). None of these structures has been drilled.

As of the date of this Interim MD&A, the option payment in the amount of USD100,000 for the fourth-year of the Cascabel Option Agreement was not made. The satisfaction of this liability will be resolved in due course.

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