SilverCrest Metals : 2023 ESG Report

2023 ESG Report

Our Common Sense Approach to Sustainability

Introduction

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

SilverCrest Metals 2023 ESG Report

Table of Contents

Introduction	2	Strategy	9	Environmental	14	Social	27
About this Report	2	Sustainability Governance	10	Environmental Management	15	Health and Safety	28
About Us	3	Governance Structure	10	Climate Change and	16	Community & Stakeholders	33
2023 Performance	4	ESG Management	12	GHG Emissions		Human Capital Development	38
Water Stewardship	19
Presidents Message	5	Approach		Diversity and Inclusion	41
ESG Performance	13	Tailings and Waste	23
Materiality	8	Governance	42
Monitoring		Management
				Disclaimer & Forward	46
				Biodiversity	25
				Looking Statement
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Introduction

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

About this Report

This Environmental, Social, Governance ("ESG") report for SilverCrest Metals Inc. ("SilverCrest", "SIL", "we", "our" or the "Company") outlines the Company's commitment to ESG principles and has been developed to transparently share its progress on sustainability. This disclosure covers SilverCrest's ESG strategy, an analysis of material ESG issues, its approach to managing ESG issues and the Company's performance in 2023. SilverCrest is striving to create long- term value for all its stakeholders, and believes that ESG plays an important role in achieving this objective.

In this report, we use the three pillars of Environment, Social and Governance to present our 2023 sustainability performance.

Reporting Period

The SilverCrest 2023 ESG Report reflects activities, initiatives and data that occurred from January 1, 2023 to December 31, 2023 and connected to SilverCrest's financial reporting period.

Content and Scope of Report

Unless stated otherwise, the content disclosed in this 2023 ESG report covers the activities of SilverCrest and its main asset, Las Chispas, operated by its principal subsidiary Compañía Minera La Llamarada, S.A. de C.V. ("Llamarada", together with SilverCrest, the "Companies").

All financial data presented in this report are consistent with figures published in SilverCrest's 2023 Annual Information Form.

Unless otherwise indicated, all dollars ($) stated in this 2023 ESG report refer to United States dollars.

Reporting Principles and

Frameworks

The 2023 ESG report references the following internationally recognized sustainability reporting frameworks:

• CDP - Carbon Disclosure Project
• GRI - Global Reporting Initiative
• GRI - Mining and Metals Supplement
• ICMM - The International Council on Mining and Metals
• SASB -Sustainability Accounting Standards Board
• UNGC - United Nations Global Compact
• ONYEN - Institutional Investors Questions

SilverCrest Metals 2023 ESG Report

Other Reports

The Company references additional reports previously published, which can be found at the following links.

• Las Chispas Operation Technical Report, dated September 5, 2023, with an effective date of July 19, 2023 (the "2023 Technical Report")
• SilverCrest 2023 Modern Slavery Report
• SilverCrest 2022 ESG Report
• SilverCrest 2022 Task Force for Climate- Related Financial Disclosures ("TCFD") Report
• SilverCrest 2022 Water Stewardship Report
• Scotiabank Report - ESG Meets Reality, Water Scarcity Across Mining Operations in Americas, dated June 15, 2022 (the "Scotiabank 2022 Water Scarcity Report")

Feedback

We are committed to regularly disclosing our ESG related performance. If you have any feedback or comments about this report, please send us an email at [e-mail]. We are always looking to improve our disclosures and your views support us in achieving that goal.

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Introduction

SilverCrest Metals 2023 ESG Report

About Us

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

SilverCrest is headquartered in Vancouver, BC, Canada, and is a producer of gold and silver, which are key commodities for the energy transition.

The Company's Las Chispas Operation, located in Arizpe, Sonora, Mexico, is a high- grade silver-gold project and second asset that the SilverCrest team has taken all the way from discovery to production in the same region. Our strong understanding of the robust regional geology, combined with our efficient construction efforts laid the groundwork for a successful ramp up period towards commercial production. This 2023 ESG report will be the first report after a full year of production at Las Chispas and we are excited to share the progress we have made over that time. Our team has a track record of success in the discovery, development and production phases of the business while showing a strong commitment to improving the wellbeing of those living in the communities in which we operate. Through our predecessor company, our team entered the region with the Santa Elena project in 2005 and we are fortunate to be able to enjoy the continuity of relationships with key community partners started almost 20 years ago.

We are members of the mining associations listed below, whereby we participate on these associations' conference calls and presentations about different topics such as security, safety, and social responsibility CAMIMEX (Mexican Mining Chamber),

• Clúster Minero de Sonora (Sonoran Mining Cluster),
• Clúster Energía Sonora (Sonoran Energy Cluster), and

• AIMMGM (Association of Mining Engineers, Metallurgists and Geologists of Mexico).

As owners of the Bavicanora Ranch located within the Las Chispas site, we are also a member of the Livestock Association of Arizpe A.C.

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1		Arizpe

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Introduction

SilverCrest Metals 2023 ESG Report

2023 Performance

Materiality

Strategy

Sustainability

Governance

0	81%
Number of notifications of	Percentage of
non-compliance in 2023	water recycled

55%

Reduction of the scope 1 and scope 2 greenhouse gas ("GHG") emissions intensity ratio1 relative to 2022

Environmental

Social

0	27	0	38%
Number of work stoppages involving 1,000 or	Average H&S	Number of fatalities	Executive
more workers lasting one full shift or longer	training hours for	as a result of work-	management
	the total combined	related injury	gender diversity
	workforce

Governance

$400,000	43%
Money invested in	Board of Directors
community projects in	gender diversity
2023 (US$)

CEMEFI Award 2023

Awarded by El Centro Mexicano para la Filantropía, A.C. (CEMEFI), the Mexican Centre for Philanthropy, for 2023 Empresas Socialmente Responsables (ESR) Distinction.

1 Scope 1 and 2 GHG emissions intensity ratio is determined by taking metric tonnes of CO2 equivalent ("tCO2e") divided by gold equivalent ounces ("GEO"). GEO represents the amount of GEO recovered by the Company by converting silver metal recovered to GEO using the gold to silver equivalent ratio of 79.51:1.

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SilverCrest Metals 2023 ESG Report

Introduction

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

President's Message

Introduction

2023 was the first full year of production at Las Chispas and we are extremely proud of what we've achieved alongside all of our stakeholders. We beat guidance on sales and costs, repaid 100% of our debt in the first seven months of production and set ourselves apart from our peers by starting to hold bullion on our balance sheet. At the same time, we made significant strides with our local partners that we are equally proud to share. We advanced our water stewardship projects during the year which allowed for greater water accessibility and resilience through an improved sewage system and the

creation of a second planting season for key parts of the agricultural land in the community which creates an opportunity to increase the income for farmers. We advanced work to apply for water concessions which would allow our local partners to access further funding for more water infrastructure. We also progressed our work to obtain solar power for our operation which, when consummated, will potentially decrease our greenhouse gas ("GHG") emissions by approximately 70% while saving us money and protecting against energy grid insecurity.

Central to our business strategy and core values, we have continued to strengthen the relationships fostered with community and government stakeholders that we have worked with for many years. We take great pride in the positive impact SilverCrest has had on the communities we operate within, from simple local community initiatives to the significant efforts made in developing local water infrastructure and economic resilience for the local community. We continue to capitalize on what we have learned by listening to our key stakeholders and through the findings of our in-depth TCFD climate risk analysis conducted in 2022. While categorized as ESG initiatives, we view our efforts as sensible, common sense, good business decisions.

Our Approach to ESG

Our approach to ESG is guided by our commitment to responsible mining practices, robust health and safety systems, environmental stew- ardship, social responsibility, strong community partnerships and common sense.

Similar to how we run our day-to-day business, we also apply a strategic, best business practice lens to ESG, allocating capital to the highest impact projects, tackling issues that are priorities and key economic drivers for our stakeholders. We believe that such an approach will allow us to create positive environmental and social impacts while also capturing economic benefits and reducing risk. This approach is most evident in our approach to water resilience and our push to support and procure renewable energy.

Improving Water Resilience in Our Communities

Conclusions of a physical and transition climate risk assessment conducted by third party consultants in 2022, highlighted water scarcity as one of the main climate risks for the region. Sonora, Mexico is a region under severe water stress, which is forecasted to get worse. It was identified that operational water withdrawal and consumption at Las Chispas is only a fraction of what is being used in our local communities (roughly 12 litres per second at site compared to 2,100 litres per second in the communities). A focus on water related projects, therefore, has the potential to greatly impact the livelihoods of members of the community that rely on farming and ranching, while simultaneously strengthening our relationships with our communities and government stakeholders. With this in mind, we committed $1.5 million towards a 5-year Water Stewardship Plan to improve local water infrastructure which will deliver greater access and resilience.

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Introduction

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

Both the Company and the community are extremely pleased with the results of the program to date. In 2022, we invested over $0.4 million into a range of water infrastructure repair and development projects across several communities local to Las Chispas. More details about these projects can be found in our Water Stewardship Report. We are proud to say that these improvements have provided year-round access to water for 57 landowners and a total of 231 hectares of agricultural land, allowing for the opportunity of multiple planting seasons in a single year, something previously not possible. This can potentially add additional income for farmers while also providing the opportunity for farmers to grow feed for cattle instead of buying it which is a significant economic benefit.

In 2023, we built on this momentum investing $0.3 million of the earmarked funds into further sewer, aqueduct repairs and electrification of well pumps (an ad hoc project based on direct feedback from the community). We plan to continue investing in water resilience projects in our local communities in 2024.

In addition to our Water Stewardship Plan, we have found other avenues to support the local community. One of the most important ways has been the ongoing process of helping community members secure water concessions in the municipality of Arizpe. This has been a focus because Arizpe is one of the only communities in Sonora that does not have access to water concessions, which requires government approval. If completed this would mark amonumental shift for Arizpe. As a result, we have been working hard for the last two years with the community and local governments to get water concessions approved, which would

help the community access government funding to finance water related infrastructure projects for generations to come. We have also been in discussions with the local Arizpe community about illuminating the main road into Arizpe, a measure to improve safety. The first section of this road illumination project was completed at the end of 2023 with the second stage to be completed in early 2024. Finally, we have been developing a strategy for recapturing a labour tax of approximately $20,000 per month. The Ministry of Agriculture and Rural Development, known as Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación ("SAGARPA"), has announced an arrangement that allows this tax to be redirected directly to qualified drip irrigation projects that benefit community members. The Scotiabank 2022 Water Scarcity Report detailed that drip irrigation reduces water consumption by 60% and can increase yields by up to 90%. We have already identified and are progressing projects that qualify for this arrangement and plan to implement the strategy in 2024.

SilverCrest Metals 2023 ESG Report

Climate and GHG Emissions

Alongside our intentional focus on addressing acute water related issues facing the region and local communities, we have continued to monitor other environmental and climate related issues, namely GHG emissions. At the end of 2022 and beginning of 2023, we took the practical steps of investing to enhance our ESG data tracking and management systems, including climate data and management. We did this to establish a Scope 1 and 2 GHG emissions baseline and to track emissions for subsequent years so that useful data is available when we come to assess our performance and introduce potential reduction initiatives in future years.

In 2023, the company also began exploring opportunities to procure its electricity from renewable sources. The same factors that cause Sonora to be so dry also makes it a great

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Introduction

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

source of solar energy with almost 300 sunny days per year. Alongside reducing a significant proportion of our Scope 2 emissions, transitioning to solar energy would allow us to hedge against rising energy costs given that such contracts are done on a fixed price basis while energy prices in Mexico have risen at approximately 7% per year over time. As a result, in 2023, we examined many solar energy providers to find a viable option for Las Chispas. A major focus in 2024 will be to further advance our efforts to integrate the use of renewable solar power at Las Chispas .

Renewable energy is not possible without mining which makes us part of the energy transition. We are excited to be able to advance this transition while reducing our costs and protecting ourselves against inflation.

Track Record of Health and Safety ("H&S")

Protecting the wellbeing of all our employees and contractors by providing a safe and inclusive working environment has always been a top priority. To date we have experienced zero personnel fatalities throughout the operation of Las Chispas. We owe our strong H&S performance to the robust risk identification and management process we have established, the dedicated managers and safety personnel that continue to promote a culture of H&S in the Company through regular training, and all the employees at site that remain vigilant.

In 2023, we continued to build on strong H&S performance in 2023 through our "Promise

to Return Home" safety and leadership training program aimed at further developing a culture of H&S. The program was attended by 740 employees and contractors in 2023. We also became one of the first mining companies in Mexico to implement new self-rescue oxygen generator technology at Las Chispas which provides a critical lifeline for miners in the event of an emergency in the mine. Finally, we began the process of working towards obtaining the internationally recognized ISO45001 certification for H&S.

Looking Ahead

In 2024 and beyond, we will remain committed to continuing to reduce the impacts of our operations. We are excited to further explore how solar investments in Mexico will contribute to our decarbonization pathway, while also supporting the transition to a lower carbon economy. We will continue to invest our time and money in addressing challenges that directly impact our communities including the continued struggle with water scarcity.

We were extremely pleased to be recognized for our ESG initiatives in 2023 through the ESR Socially Responsible Company distinction, awarded by the Mexican Centre for Philanthropy (CEMEFI). The award has re-emphasized to all of us at SilverCrest that we are on the right track. The common-sense approach to ESG that we have taken is starting to see positive impact in the places that need it most.

SilverCrest Metals 2023 ESG Report

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Introduction

SilverCrest Metals 2023 ESG Report

Materiality

Materiality

SilverCrest conducted an in-depth stakeholder materiality assessment in partnership with third-party experts in 2020. This assessment was a strategic exercise to identify, refine, and evaluate the ESG issues that are most important to SilverCrest's stakeholders. While

communities, and people. Within each of the material topics expanded upon below, we discuss related topics that are particularly relevant to us and our industry context. We discuss each topic with a priority for transparency. Our

process to define report content is guided by the Global Reporting Initiative (GRI) Standards and Sustainability Accounting Standards Board (SASB) material topics for our sector.

Strategy

Sustainability

Governance

Environmental

Social

Governance

the assessment acknowledged numerous topics as pertinent to stakeholders, it distilled these down to a core list of priorities that now shape our strategic planning, capital allocation, and reporting processes. The materiality matrix that follows illustrates these key issues and their respective levels of importance.

Since we conducted the materiality assessment, and throughout 2023, we have continued to maintain regular communications with our different stakeholder groups to assess and anticipate changes in materiality. We did this to maintain an accurate and up-to-date understanding of the priority issues for each group and to identify any new ESG issues as they arise. SilverCrest regularly meets with the various local community and government stakeholder groups proximal to Las Chispas, as part of our annual stakeholder management plan, to understand their challenges and concerns. The outcomes of these meetings are reported monthly to corporate head office and is incorporated into SilverCrest's ESG and broader business strategy.

The 2023 ESG report covers material topics relating to the most significant actual and potential impacts, both positive and negative, that SilverCrest has on the economy, environment,

SilverCrest Materiality Matrix

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Introduction

Materiality

Strategy

Sustainability

Governance

Environmental

Social

Governance

Strategy

After completing our formal materiality assessment in 2020, SilverCrest established a stakeholder aligned ESG Strategy Framework based on the most material issues identified. The ESG strategy is centred around five pillars: Environment, Social Capital, Human Capital, Leadership & Governance, and Business Resilience, which represent the most material ESG issues for the Company to manage. This strategy, along with the Company's ESG policies, formalizes our commitment to a practical approach to ESG management and serves as a cornerstone for making strategic decisions that support the success of our operations and business.

Within each pillar, we have identified specific focus areas. There are 23 focus areas across the five pillars that reflect the various issues that our stakeholders deemed important to our long-term operation success. Our strategy framework pillars, visions and focus areas can be seen in the framework image.

At SilverCrest, we continue to use this framework as a guide for our ESG management approach, however for the ease of reading and to better align with global best practices for reporting, we have structured the sustainability disclosures in this report under the headings of "Environment", "Social" and "Governance". This difference in formatting does not have an impact on the scope and transparency of our disclosures in this 2023 ESG Report, as all our material topics are disclosed in full detail.

SilverCrest Metals 2023 ESG Report

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