The

Petate Au-Ag Project, Hidalgo State, Mexico

Sediment-hosted Au / CRD Potential

Overview Technical Presentation, February 2017

1
Cautionary Statement
This presentation contains certain forward-looking statements concerning anticipated developments in Prospero’s operations in the future.
Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,”
“estimates,” “potential,” “possible,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or
“should” occur or be achieved. These forward-looking statements may include statements regarding exploration results and budgets,
reserve estimates, mineral resource estimates, work programs, capital expenditures, timelines including timelines for third-party studies
and issuance of permits to operate by various government agencies, strategic plans, the market price of metals, costs, or other statements
that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those currently anticipated in such statements due to a variety of risks, uncertainties
and other factors. Prospero’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date
the statements are made, and Prospero does not assume any obligation to update forward-looking statements if circumstances or
management’s beliefs, expectations and opinions should change.

Cautionary note to U.S. investors: the terms “measured and indicated resource”, “mineral resource”, and “inferred mineral resource” used
in this document are Canadian geological and mining terms as defined in accordance with National Instrument 43-101, Standards of
Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum
(the “CIM”) Standards on Mineral Resources and Mineral Reserves. We advise U.S. investors that while such terms are recognized and
required under Canadian regulations, the SEC does not recognize these terms. Mineral Resources do not have demonstrated economic
viability. It cannot be assumed that all or any part of a Mineral Resource will ever be upgraded to Reserves. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of or be included in feasibility or other studies. U.S. investors are cautioned
not to assume that any part of an inferred mineral resource exists, or is economically or legally mineable.

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3
Introduction
• Precious metal enhanced possible carbonate-hosted replacement deposit (CRD)
near the historic Pachuca-Real del Monte mining district, accessible by road
• Steep and strata-bound jasperoids host near-surface gold & silver mineralization
• Five drill-ready targets; 27 drill sites already permitted with surface-owner
permissions granted.
• The significant size of the silicified zones indicates that Petate is a robust
mineralized system with excellent potential to host a replacement-type deposit
at depth with elevated precious metals.

Target Models & Analogues

1. Carbonate-hosted jasperoids as chimneys/mantos/reefs. Examples: Apartadero, El Tajo, Petate East targets. The
Apartadero and El Tajo targets are geochemically gold enhanced, the Petate East are silver enhanced.

2. Intermediate sulfidation reef/vein system: Petate SW Reef, both gold and silver and base metal enhanced
geochemistry.

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Summary
Target Type Shallow gold mineralization hosted by steep (and possibly also strata-bound)
jasperoids, and shallow silver mineralization hosted by manganese-rich, strata-
bound mantos.
Location 2-3 hours drive from Mexico City, 30km northwest of the historic Pachuca-Real
del Monte mining district, on the western side of the Sierra Madre Oriental fold
belt
Land Holdings 6,800 hectares

Mining History Extensive local mining history with production of 1.2B oz Ag + 6 Moz Au from the
Pachuca mining camp (Vizcaina, Real Del Monte etc)

Security Good. No issues in the 3 years Prospero has worked in the area

Community Friendly. Prospero has negotiated access with local land owners for 27 permitted
drill pads.
Targets Petate West (~5 km north-south) and Petate East (~2 km north-south), each with
distinct geological and geochemical signatures. Petate West: Ag-Hg-As-Sb. Petate
East: Au-Ba-Mn.

Alteration Extensive silica flooding and jasperoid development.

Work Done Mapping, sampling, clay mineralogy & fluid inclusion work

Spend to Date $157k

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Contents
Page #
• Introduction 4
• Summary Overview 5
• Mineral Deposits of Northern Mexico 7
• Location 8
• Local Mining History 9
• Community & Security 10
• Work Done by Prospero 11
• Regional Geology 12
• Mineral Mapping 13
• Google Earth Image 14
• Project photos 15-16
• Local Geology and Key Targets 17
• Apartadero #3 Target 18-19
• Rock Geochemistry & Geology 20-24
• Apartadero Central Target 25
• Apartadero photos 26
• Apartadero Sampling: Clemente 27-29
• Apartadero Permitted Drill Collars 30
• Petate East Soil Sampling 31-36
• Petate East Permitted Drill Collars 37
• Petate SW Target 38-40
• Petate SW Sampling 41-42
• Fluid Inclusion Analysis 43
• Summary 44
• Contact Details 45
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Mineral Deposits of Northern Mexico Recent or newer discoveries shown in bold.

Mulatos
⚒ ⚒Dolores Sta. Eulalia
Yepachic
Trias ⚒
Bermudez
⚒Pinos Altos USA
⚒Ocampo
⚒ Naica
Magistral ⚒
Piedras Verdes

⚒ ⚒ Levon Mexico
⚒Batopilas Los Gatos

⚒
S. Fco. Del Oro
⚒ ⚒Parral
Sta. Barbara ⚒
Gambusino
Baborigame
Villa Ocampo

Santa Maria Del Oro/ Matorral ⚒Platosa

San Julian
⚒ ⚒ ⚒Pitarrilla ⚒ Mapimi
Guanacevi
El Gallo

⚒⚒ San Luis Del Cordero

⚒
⚒ EW Fold Belt
Magistral Topia Jimulco

⚒La Cienega Campana

Velardena ⚒⚒ECU Silver
San Juan Tayahua
San Augustin
⚒ ⚒⚒ ⚒
Avino ⚒GPE. Victoria
Bacis Nochebuena
⚒ ⚒ ⚒⚒⚒Aranzazu
Gonzolo
⚒
La Preciosa ⚒
Tayoltita Penasquito

⚒
Mala Noche ⚒
Camino Rojo
⚒
La Parrila
⚒ San Martin
Panuco
Sombrerete ⚒
⚒ Colorada ⚒S.M. La Paz
⚒ ⚒Catorce
Copala
⚒ Del Toro ⚒ ⚒
Rosario ⚒ ⚒La Rastra ⚒Charcas
Cucharas
Juanicipio
⚒⚒Fresnillo
⚒ F. I. Madero
⚒⚒
⚒ El Indio San Nicholas
⚒
Real De Angeles ⚒ ⚒Pinos ⚒San Pedro
⚒ Orion
Coronel
⚒
⚒El Dorado ⚒
Asientos

⚒ ⚒Xichu
Guanajuato
⚒ La Negra
Zimapan ⚒

El Petate
200km Pachuca ⚒
Pachuca SE

Existing or past Prospero project ⚒ Historic or current producing mine

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Location
Hidalgo State, 2-3 hours on sealed road from Mexico City

• Southern Hidalgo, an easy 2-3 hour drive on freeway from Mexico City, no access issues
• Close to the historic Pachuca mining camp, which produced >1B oz Ag + 6M oz Au from epithermal veins
• 27 drill pads already permitted
• Alteration exposed over a wide area
• Accommodation and supplies available in Pachuca

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Local Mining History: The Pachuca mines
• Pachuca was a major silver mining center until well into the 20th Century. Local culture has been influenced
by the historic immigration of miners from Cornwall in England

• Mining is reported to have started here in 1552 after a Spanish settler found silver on his ranch.

• Mining began to decline by the second half of the 20th century as the mines fell under Mexican government
control in the 1960s and the major veins were exhausted.

• The Pachuca-Real Del Monte mines are conservatively estimated to have produced 1.2 billion Troy ounces of
silver and 6.2 million ounces of gold and were an important contributor to the economy of the Spanish
empire*.
• Average mined grades are
estimated to have been 500g/t
Ag + 2.5g/t Au

https://en.wikipedia.org/wiki/Mineral_del_Monte

Pachuca City with Loreto Mine Head Gear

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Community & Security

FeOx colour anomaly at Petate

• Prospero has had no security issues over the past 3 years whilst working at Petate
• The property is located close to Pachuca City with good basic infrastructure including power lines, highways
and gravel roads.
• The area consists both of privately-owned homes and ranches as well as surrounding ejido land.
• The drill targets identified to date are located within private land where access has been granted, and
permits have already been received from the Government.

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Work Done by Prospero
SILICIFIED
ZONE

• The Petate project was found during regional prospecting and mapping of the historic Pachuca mining district.
• PSL's geologists noted silicified limestones (jasperoids) and Fe/ MnOx associated with anomalous gold across a
wide area of high-ground.
• PSL has carried out a) regional and local scale mapping, sampling (1,200 samples) and prospecting; b) Small
scale sampling of the mapped alteration and alteration mineralogy, and fluid inclusion geochemistry.
• Geochemical signatures suggest 2 distinct but related target types; Sed’t hosted Au + CRD
• Drill permits have been received for 27 drill pads and access has been negotiated with local land owners.
• Spend to date: $157k

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Regional Geology

El Petate project
Area of next slide

Vizcaina vein

PSL’s Pachuca SE project

The Petate mineral occurrences are hosted in the El Abra limestone of Lower Cretaceous age. The limestone occurs in a dome of the Mesozoic fold belt of
the Sierra Madre Oriental. Scattered outliers of overlying andesites of the Tertiary Pachuca Group (which do not host silicification) suggest that the Petate
hydrothermal system is more similar in age to the Zimapan skarn/replacement type deposit (~42Ma), than the age of the Pachuca vein deposit (~23 Ma).
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Mineral Mapping

Clay 1 Area of next slide

La Escoba
Fe-bearing Clay 2
minerals
Petate East Zone
Petate West
Apartadero Zone

El Tajo

Minas Plomosas

2km

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Google Earth Image

PSL’S work has defined 2 domains: Petate West (~5 Area of next slide
km north-south) and Petate East (~2 km north-
south), each with distinct geological and
geochemical signatures.

Nearly 1,200 rock chip & grab samples have been

collected in the two zones sampling outcrops or
jasperoid boulders and float.

In the West zone, multi-gram gold assays were

obtained from the the Apartadero, El Tajo and the
Petate SW reef. The Apartadero area shows stronger
gold values associated with Ag-Hg-Sb-As.
Tv
At Petate East, sampling returned multi-ounce silver
assays. Petate East zone is characterized by stronger
silver values in association with Au-Ba-Mn.
Tv
The presence of low temperature silica invasion and
silicification, associated with elevated Hg, Sb, and As
indicate that the surface exposures at Petate may Tv
correspond to the upper parts of a preserved Minas Plomosas
mineralized system at depth.
Tv
Tv

Tv Tv

Tv = Tertiary volcanics Tv

14 14
15
Petate #2 Target, vein of open-space filling quartz Petate #1 Target, sub outcrop of gossan

Petate #1 Target, boulder of qtz-FeOx. 0.01ppm Au + 26.3ppm Ag Sub outcrop of gossan. 0.02ppm Au + 105 ppm Ag

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Local Geology & Key Targets
1. Apartadero Target
Jasperoid float and outcrop over 1.3km by 200m.
Highest Au values returned from Petate claims.
Au assays from 1 to 6.6ppm over roughly 500m
Ag assays range from 2.8ppm to 31.4ppm
Multi-element geochemistry: Hg, As, Sb
1 Open pit potential

2. El Tajo Target
4
Silica flooding & jasperoid over 500m x 150m.
Au from 0.1ppm to 2.4ppm
Open pit potential

3. Petate SW Reef Target

Tabular silicified reef 1.2km long along a regional
scale fault.
Anomalous Au up to 3.6ppm
Ag assays range from 2.8ppm to 31.4ppm
Multi-element geochemistry: Hg, As, Sb, Pb, Zn

4. Petate East
Silica / oxides exposed along a creek for 50m
Anomalous Au up to 0.5ppm, Ag up to 89.4ppm
Subdued Au anomaly 400m long to NW
3

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Apartadero #3 Target

Petate #3 Target, possible intrusive in pit Petate #3 Target, intrusive dyke in limestones

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Apartadero #3 Target

55°
#52393
Au=.14 ppm
Ag= 18.7 ppm

#52392
Au=.345 ppm
Ag= 8.9 ppm

Petate #3 H/W fault, Qtz+Oxides. Sample 52385 0.15ppm Au + 5.2ppm Ag Petate #3 F/W zone gossans

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Rock Geochemistry & Geology: Au + Ag
Au ppm Ag ppm

Apartadero Apartadero

Petate West Zone Petate West Zone

Petate East Petate East

Petate SW Petate SW

20
Rock Geochemistry & Geology: Hg
Hg ppm

Apartadero

Petate West Zone

Petate East

Petate SW

21
Rock Geochemistry & Geology: As + Sb
As ppm Sb ppm

Apartadero Apartadero

Petate West Zone Petate West Zone

Petate East Petate East

Petate SW Petate SW

22
Rock Geochemistry & Geology: Ba + Mn
Ba ppm Mn ppm

Apartadero Apartadero

Petate West Zone Petate West Zone

Petate East Petate East

Petate SW Petate SW

23
Rock Geochemistry & Geology: Pb + Zn
Pb ppm Zn ppm

Apartadero Apartadero

Petate West Zone Petate West Zone

Petate East Petate East

Petate SW Petate SW

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Apartadero Central Target

Clemente wall cut, looking southeast: 67.5m @ 0.93 g/t Au

Clemente wall cut, looking northwest

25
Apartadero

Apartadero central & SE targets, looking southeast Apartadero central targets, looking northwest

Sub outcrop: Upper Apartadero target, gossan 26

Apartadero Sampling: Clemente

27
Apartadero Sampling: Clemente

28
Apartadero Sampling: Clemente

29
Apartadero Permitted Drill Collars

DH-01

DH-02
DH-03
DH-05 DH-04
DH-06
DH-07
DH-08
DH-09

DH-10
DH-11 DH-12

DH-13
DH-14

DH-15

DH-16

DH-17
DH-18

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Petate East Soil Sampling
487 soil samples were collected from a grid over the
Petate East zone

• The Petate East zone is made up of 4 silica bodies, Petate #1

to #4, over a strike length of 2.5km.
• The Petate East geochemistry shows higher Ag levels than
Apartadero, particularly in the eastern zone, (Petate # 1, #2,
and #3 targets) with Ag ranging locally from 25 to 140 ppm
• Soil sampling indicates that the Petate #1, and Petate # 2
anomalies are open to the west.
• Petate East also shows elevated Fe and Mn geochemistry
with anomalous values up to double digit percent range.
• The historic "El Aguila" mine at the southern extension
extracted manganese-rich ore from a gossan at the contact
with a feldspar porphyry dike. Two samples from the gossan
assayed 345 ppm and 595 ppm Ag, highlighting the presence
of high grade silver associated with manganese oxides.

31
Petate East Soil Sampling: Au + Ag
Au ppm Ag ppm

32
Petate East Soil Sampling: Hg + Sb
Hg ppm Sb ppm

33
Petate East Soil Sampling: As + Ba
As ppm Ba ppm

34
Petate East Soil Sampling: Zn + Pb
Zn ppm Pb ppm

35
Petate East Soil Sampling: Fe + Mn
Fe ppm Mn ppm

36
Petate East Permitted Drill Collars

DH-19
DH-20
DH-21

DH-22
DH-23

DH-24 DH-25

DH-26

DH-27

DH-17
DH-18

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Petate SW Target
• Tabular silicified reef, outcropping for 1.2km along a >3km long
boundary fault. To NW it trends under younger andesites.

• Au up to 3.6g/t, Ag up to 39ppm, Zn up to 0.64%, Pb up to 0.33%

38
Petate SW Target

39
Petate SW Target

40
Petate SW: Sampling
Au Ag

Sb As

41
Petate SW: Sampling
Pb Hg

Zn Mn

42
Fluid Inclusion Analysis

Fluid inclusion results obtained from Petates quartz samples relatively low temperature and low salinity
(130ºC to 230ºC; 0-3.0 wt.% NaCl equiv). This suggests that the surface exposures in the project area
correspond to the upper parts of a preserved mineralized system at depth.

43
Summary
• Precious metal enhanced possible carbonate-hosted replacement deposit (CRD)
near the historic Pachuca-Real del Monte mining district, accessible by road
• Steep and strata-bound jasperoids host near-surface gold & silver mineralization
• Five drill-ready targets; 27 drill sites already permitted with surface-owner
permissions granted.
• The significant size of the silicified zones indicates that Petate is a robust
mineralized system with excellent potential to host a replacement-type deposit
at depth with elevated precious metals.

44
Contact Us
Prospero Silver Corp.
1800-510 West Georgia St.
Vancouver,
BC. V6B 0M3

Ralph Rushton, Business Development

+1 604 307 0055
ralphr@prosperosilver.com

Tawn Albinson, President

albinson@prodigy.net.mx

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