Kuya Silver : Management's Discussion and Analysis (December 31, 2023)

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

OVERVIEW OF EXPLORATION AND EVALUATION ASSETS

Bethania Silver Project (Huancavelica, Peru)

The Bethania Silver Project is comprised of the Bethania mine (Santa Elena mining concession) that operated from 2010 to 2016, the Carmelitas concessions, and the Tres Banderas concessions as detailed below and collectively covers approximately 4,295 hectares. One of the Company's key goals for the Bethania Silver Project is to develop a 350 tonnes per day ("tpd") mining operation that would include the construction of a 350 tpd processing plant as contemplated in the Amended and Restated Preliminary Economic Assessment (the "PEA") which was filed on SEDAR+ on October 10, 2023 and posted on the Company's website. The PEA envisages a 350 tpd underground mine feeding a processing plant that would process mineralized material and also incorporates the potential to toll-mill mineralized material prior to the construction and commissioning of a new processing plant at site.

Bethania

On December 15, 2020, Kuya Silver completed the purchase of 100% of the shares of Minera Toro del Plata S.A.C. ("MTP"), a privately held Peruvian company based in Lima that owns 100% of the Bethania Silver Property (Santa Elena concession) and Chinita I concession located in the district of Acobambilla, department of Huancavelica, Peru. MTP operated the Bethania mine from 2010 to 2016, by mining ore from underground and trucking it to nearby plants for processing into concentrates.

Carmelitas Concessions

On May 14, 2021, the Company announced the acquisition of three mineral concessions, Carmelita 2005, Carmelita 2005 I and Carmelita 2005 II concessions (collectively "Carmelitas"), which are strategically located less than three kilometers west of Bethania, located in the district of Acobambilla, department of Huancavelica and in the district of Chongos Altos, department of Junín, Peru. The Carmelitas concessions were host to small-scale mining activities until early 2020, producing silver-polymetallic material very similar to Bethania. Kuya Silver plans to incorporate Carmelitas into its operating activities at Bethania going forward.

The initial total purchase price of $892,500 consisted of $492,500 in cash and $400,000 in common shares in Kuya Silver. Upon signing of the agreements, $293,500 was paid (including $42,500 of other costs allocated to the transaction). The remaining $199,000 was due on May 14, 2022, and the $400,000 in common shares in the capital of the Company was due to be issued on the eighteen-month anniversary of signing the agreements (November 14, 2022) at a deemed price per common share equal to the 10-day average closing price of the common shares on the CSE, ending on the day prior to issuance.

On September 21, 2022, we announced an amendment to this agreement, which increased the total purchase price from $892,500 to $952,500 including the earlier issuance of common shares. Kuya Silver issued 1,084,490 common shares, equivalent in value to $400,000 (at a price of CAD$0.49 per share, equivalent to the 20-dayvolume-weighted average price ending on September 16, 2022, as per the calculation of the deemed price of the common shares in the amended agreement). The remaining $259,000 was paid in cash in tranches with the final payment of $100,000 being made on January 30, 2023.

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

OVERVIEW OF EXPLORATION AND EVALUATION ASSETS (cont'd…)

Bethania Silver Project (Huancavelica, Peru) (cont'd…)

Tres Banderas Concessions

The Tres Banderas concessions are located primarily in the department of Huancavelica, Peru (with some concessions extending into the departments of Lima and Junín), in the vicinity of, or surrounding Bethania. Tres Banderas 01 through 07 mining claims, (that are near to and contiguous with the Santa Elena mining concession, which includes the Bethania mine) were acquired through an open application process from 2019 and 2022 by Kuya Silver S.A.C. ("Kuya S.A.C."). In early 2023, a mineral concession for Tres Banderas 08 (contiguous with Tres Banderas 06 to the south) was awarded to Kuya S.A.C.

Silver Kings Project (Ontario, Canada)

On March 1, 2021, the Company completed an agreement to acquire, from Electra Battery Materials Corporation ("Electra"), certain silver-cobalt mineral exploration assets (the "Kerr Assets"), as well as an option to acquire up to 70% of the balance of Electra's silver-cobalt mineral exploration assets (the "Remaining Assets") located in the historic Cobalt, Ontario silver-cobalt mining district. As part of that agreement, the Company had the option of forming a joint venture with Electra ("Silver Kings JV"), through its wholly owned subsidiary Cobalt Industries of Canada Inc. ("CIC"), the company that holds the Remaining Assets. On December 31, 2022, the Company and Electra amended the original agreement to provide the Company with the right to acquire 100% of the Remaining Assets, which was then completed in January 2023.

Since November 2021, Kuya has also acquired (primarily through claim-staking) additional mining claims in the Cobalt mining district, with some being adjacent to the Kerr Assets or the Remaining Assets, and others located in nearby prospective areas. These claims are collectively referred to as the Sunrise Claims.

The Silver Kings Project encompasses the 100%-owned Kerr Assets ("Kerr Project"), the Remaining Assets and the Sunrise Claims totaling 14,414 hectares in the Coleman, Gilles Limit, Lorrain, South Lorrain, Kittson, Barr, Klock, and Dane townships in north-eastern Ontario. Certain of the claims that are part of the Remaining Assets are subject to a 2% net smelter returns royalty as detailed below in the "Other Silver Kings Properties (formerly Silver Kings JV)" section. The Company continually manages its property position based on strategic goals, geological potential and expenditure requirements and may increase or decrease these holdings from time to time.

Following consolidation of the Silver Kings Project land package, as a next step, the Company executed two separate diamond drill programs in 2023 at the Silver Kings Project targeting silver-cobalt mineralization in the Kerr Project area, specifically on the Campbell-Crawford and Airgiod properties.

Kerr Project

On September 30, 2021, the Company obtained control of CobalTech Mining Inc. ("CobalTech") the company that holds the Kerr Assets which includes twelve patents in both Coleman and Gilles Limit townships, a lease, and several mineral claims. In connection with the acquisition, a reclamation provision in the amount of $1,842,580 has been recorded for future reclamation and rehabilitation obligations on the Kerr Assets.

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

OVERVIEW OF EXPLORATION AND EVALUATION ASSETS (cont'd…)

Other Silver Kings Properties (formerly Silver Kings JV)

To fully exercise the option on the Remaining Assets, the Company was to make payments totaling CAD $2,000,000 and complete work commitments of CAD $4,000,000 by September 1, 2024. As per the December 31, 2022 amendment to the original agreement, the Company acquired a 100% interest in the Remaining Assets by making payments of CAD $2,000,000 (including what had been already paid at the time). As per the amendment, the Company granted a 2% royalty on net smelter returns from commercial production on the Remaining Assets to Electra. The Company is no longer required to complete any work commitments.

The original agreement provided that Kuya Silver may issue an equivalent value in common shares of the Company at the 20-day volume weighted average price immediately prior to the date the actual respective payment is made in lieu of making the cash payments. On September 1, 2021, the Company issued 671,141 common shares to Electra, in in lieu of a CAD $1,000,000 cash payment. Following this payment, the Company and Electra had intended to enter a Joint Venture Agreement ("JVA") for the joint exploration and development of the project. In advance of the commitments due on September 1, 2022, Electra provided a notice of waiver of the requirements of the JV Earn- In Payment Schedule on a temporary basis, to allow sufficient time for Kuya Silver and Electra to negotiate, finalize and execute an amendment to the agreement in respect of the Remaining Assets. On December 31, 2022, the Company and Electra completed the amendment, as described above. On January 31, 2023, the Company issued 2,702,703 common shares to Electra, in lieu of the CAD $1,000,000 cash payment to acquire the remaining interest. Additionally on January 31, 2023, the Company issued 405,405 common shares to Electra, for settlement of CAD $150,000 of accounts payable and accrued liabilities due to Electra.

On March 24, 2023, the Company entered into a settlement agreement with Canadian Silver Hunter Inc. ("CSH") and Cobalt Projects International Corp. (a subsidiary of Electra, "CPIC"), which settles a dispute (the "Dispute") between CSH and CPIC regarding certain mineral properties previously optioned by CPIC from CSH. The Dispute was transferred to the Company upon the Silver Kings JV amended Purchase Agreement and Option. To settle the Dispute, the Company issued 1,666,667 common shares to CSH and obtained a 100% interest in the mineral properties associated with the Dispute. In connection with settling the Dispute, the Company also entered into an agreement with CSH granting CSH a 2% royalty on net smelter returns from the related mineral properties.

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

CORPORATE UPDATE AND OUTLOOK

Financings

The Company started 2023 with $1,196,879 in cash, from financings obtained through various means during 2022. Included in the opening cash balance were the remaining flow-through share funds of $844,780 from a December 2022 flow-through financing.

April 2023

In April 2023, the Company closed, in two tranches, a non-brokered private placement and issued 6,686,888 units at a price of CAD $0.27 per unit for total proceeds of CAD $1,805,460 for general working capital requirements. Each unit consisted of one common share and one-half of one transferable common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of CAD $0.50 per common share for a period of 24 months from the date of issue. The Company paid a total of CAD $28,524 for finders' fees and issued 105,644 finders' warrants in connection with this private placement. Each finder's warrant entitles the holder to acquire one common share at a price of CAD $0.50 per common share for a period of 24 months from the date of issue.

July 2023

In July 2023, the Company closed a non-brokered private placement and issued 2,920,219 units at a price of CAD $0.44 per unit for total proceeds of CAD $1,284,896 for qualified exploration expenditures on exploration programs on the Company's Canadian properties. Each unit consisted of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each whole warrant entitles the holder to acquire one non- through common share at a price of CAD $0.60 per common share for a period of 18 months from the date of issue. The Company paid a total of CAD $69,174 for finders' fees and issued 157,213 finders' warrants in connection with this private placement. Each finder's warrant entitles the holder to acquire one non-flow-through common share at a price of CAD $0.44 per common share for a period of 18 months from the date of issue. The flow-through shares were issued at a premium of USD 133,029.

August 2023

In August 2023, the Company closed, in two tranches, a non-brokered private placement and issued 2,781,300 units at a price of CAD $0.27 per unit for total proceeds of CAD $750,951 for general working capital purposes. Each unit consisted of one common share and one-half of one transferable common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of CAD $0.50 per common share for a period of 24 months from the date of issue. The Company paid a total of CAD $15,147 for finders' fees and issued 56,100 finders' warrants in connection with this private placement. Each finder's warrant entitles the holder to acquire one common share at a price of CAD $0.50 per common share for a period of 24 months from the date of issue.

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

CORPORATE UPDATE AND OUTLOOK (cont'd…)

Financings (cont'd…)

December 2023

In December 2023, the Company closed the first tranche of a $1,200,000 non-brokered private placement pursuant to an agreement with Trafigura Pte Ltd ("Trafigura") through two its subsidiaries, whereby Trafigura has invested $229,594 (CAD $312,179) to acquire 1,248,716 units of Kuya Silver at a price of CAD $0.25 per unit to support the restart of production from the Bethania mine. Each unit consists of one common share in the capital of Kuya Silver and one common share purchase warrant. Each warrant entitles the holder to acquire one common share for CAD $0.37 until December 7, 2025. Trafigura has agreed to hold the common shares acquired in the offering for a minimum of one year and will immediately exercise the warrants if the common shares trade at a premium of 25% to the warrant exercise price for one month. The Company paid a finder's fee to a qualified non-related party in the amount of CAD $27,014 in connection with the financing.

The second tranche of the private placement closed in April 2024. Details of the $970,000 financing can be found in the subsequent events section of this document.

In December 2023, the Company closed, in two tranches, a non-brokered private placement pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions (the "LIFE Exemption") by issuing 13,921,000 units at a price of CAD $0.25 per unit for gross proceeds of CAD $3,480,250. Each unit consisted of one common share and one common share warrant. Each warrant entitles the holder to thereof to acquire one additional common share at an exercise price of CAD $0.37 per common share for a period of 24 months from the date of issuance. The warrants are subject to accelerated expiration whereby if the closing trading price of the common shares on the CSE or such other stock exchange where the majority of the trading volume occurs, for any period of 15 consecutive trading days equals or exceeds CAD $0.50, the Company may, upon issuing a press release (the "Acceleration Notice") accelerate the expiry date of the warrants to the date that is 15 days following the date of the Acceleration Notice. If the warrants are not exercised by the accelerated expiry date, the warrants will expire and be of no further force or effect. The net proceeds of the financing will be used for development expenses at Bethania site, exploration at the Silver Kings project and general working capital requirements. A total of CAD $161,815 was paid as a cash commission and 434,940 non-transferable common share warrants with an exercise price of CAD $0.25 per common share for a period of 24 months from date of issue were issued to qualified parties.

On December 29, 2023, the Company closed a non-brokeredflow-through private placement for aggregate gross proceeds of CAD $450,240 with a single investor for qualified exploration expenditures on exploration programs on the Company's Canadian properties. The Company issued 1,608,000 flow-through units at a price of CAD $0.28 per unit, each consisting of one common share in the capital of the Company and one-half of one non-transferable common share warrant. Each whole warrant is convertible into a non-flow-through common share of the Company at a price of CAD $0.37 per common share until December 28, 2025. A finder's fee of CAD $20,447 was paid to a qualified non-related party. The flow-through shares were issued at premium of CAD $56,280 ($42,598).

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

CORPORATE UPDATE AND OUTLOOK (cont'd…)

Exploration and evaluation assets

Bethania Silver Project

One of the Company's key goals for the Bethania Silver Project is to resume mining operations and to build a 350 tpd processing plant. However, in the immediate future, the Company's management is focused on reviewing options which includes resuming underground mining activities and to conduct toll-milling (i.e. processing ore at a third-party mill into saleable concentrate) prior to construction of the processing plant, which could generate near- term cash flow while de-risking the mining operation by providing valuable production experience, training to the potential workforce and advancing the underground development required for eventual full-scale production.

The Company plans to restart operations by toll milling mineralized material at one or more of the nearby mills in the area. There is a robust spot market for milling services within trucking distance from the Bethania project, and in the past the Company has disclosed agreements with service providers such as: Compania Minera San Valentin and Peru Sol. The Company maintains discussions with several mills with a goal of minimizing costs, including trucking expense, and maximizing concentrate production performance. Environmental and social factors are also considered by Kuya Silver in committing to any third-party business arrangements.

In early 2024, Kuya Silver started preparatory work necessary to restart production over the coming months to recondition and upgrade the underground working areas which have seen little to no traffic for the past seven years. The pre-production work included removal and replacement or reinforcement of certain underground supports, water pumping (dewatering), removal of broken rock material, tunnel, rail and ventilation maintenance, etc. Initial production has focused on areas with existing underground infrastructure and will transition over time to newly developed areas. Kuya Silver plans to recondition and improve historical working areas to a high standard in order to reduce safety risks and improve productivity and maintain that same high standard as it develops new areas of the mine.

The Company's management also believes there are opportunities to expand on the Company's exploration strategy throughout the Bethania district, including the Carmelitas concessions, where several high-priority targets are ready to be followed up with mapping and sampling programs to advance these targets to a drill-ready stage. The Company recently completed an initial surface sampling program at Carmelitas, which was successful in discovering a new zone of mineralized veins and demonstrated that silver polymetallic vein mineralization could be more extensive than previously understood. Between two vein systems identified at Carmelitas (also referred to as Carmelitas Main and Carmelitas Norte) and the Company's understanding of the Bethania mine area, the Company can identify at least 2.3 kilometres of combined strike length of mineralized vein systems which collectively to date have seen minimal exploration at depth.

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KUYA SILVER CORPORATION MANAGEMENT'S DISCUSSION & ANALYSIS (Expressed in US Dollars)

DECEMBER 31, 2023

CORPORATE UPDATE AND OUTLOOK (cont'd…)

Exploration and evaluation assets (cont'd…)

Silver Kings Project

Kuya Silver has completed transactions that consolidate 14,414 hectares of exploration claims, patents, and leases under the scope of the Silver Kings Project. While management sees many targets throughout the property package, exploration in the near-term is focused in the vicinity of Kerr Lake (2 km southeast of the town of Cobalt), where our most advanced targets are located, including Campbell-Crawford, Airgiod and North Drummond targets (also referred to as the Kerr Project). In early 2023, the Company made a new silver vein discovery on the Campbell- Crawford claim, which is now known as the Angus Vein. Since then, the Company has identified other veins and vein structures both in drilling and on the surface in close proximity to the Angus Vein which have been shown to host silver-cobalt mineralization. In our most recent drill campaign performed during fourth quarter of 2023, the Company further extended the footprint of silver-cobalt mineralized veins on the Campbell-Crawford property, delineating several new veins. In addition, Kuya Silver drilled a successful step-out hole intersecting a newly identified mineralized vein on the adjacent Airgiod property, approximately 250 m west of the Angus Vein discovery. The second phase of 2023 drilling was completed, with results released in January 2024. Currently exploration plans for the remainder of the year include surface work and detailed geophysics in order to refine specific drill targets on the project with an emphasis on advanced targets in the Kerr Lake and Silver Centre areas.

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