Montero Mining and Exploration : MD&A for the period ending September 2022

MONTERO MINING AND EXPLORATION LTD.

Management's Discussion and Analysis

For the nine months ended September 30, 2022

1.1 DATE

This Management's Discussion and Analysis ("MD&A") of Montero Mining and Exploration Ltd. ("Montero" or the "Company") has been prepared by management as of November 28, 2022 and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021. The Company's Board of Directors have reviewed and approved this MD&A.

All amounts in the MD&A, financial statements and related notes are expressed in Canadian dollars unless otherwise noted.

All statements, other than of historical facts included herein, including without limitations, statements regarding potential mineralization, reserves and exploration results and future plans and objectives of the Company are forward looking statement and involve various risks and uncertainties, which are detailed in the Section "Risk Factors" of this MD&A. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

COVID-19 PANDEMIC

Since March 2020, several measures have been implemented in Canada and the rest of the world in response to the increased impact from coronavirus (COVID-19). In many countries, including Canada and Chile, businesses have been forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, maintaining minimum distances between people, and closures of non-essential services, have triggered significant disruptions to businesses worldwide, resulting in significant unemployment and an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening of certain sectors. Governments and central banks have responded with monetary and fiscal interventions designed to stabilize economic conditions. To date, the Company's operations have not been materially negatively affected by these events, apart from restricting travel, increasing costs, in particular around health and safety and housing field-staff. The duration and impact of the COVID- 19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration of the impact, the severity of the consequences, nor the impact, if any, on the financial position and results of the Company for future periods.

RUSSIA MILITARY ACTION AGAINST UKRAINE

Our business, financial condition and results of operations may be negatively affected by economic and other consequences from Russia's military action against Ukraine and the sanctions imposed in response to that action.

In late February 2022, Russia launched a large-scale military attack on Ukraine. The invasion significantly amplified already existing geopolitical tensions among Russia, Ukraine, Europe, NATO and the West, including Canada. In response to the military action by Russia, various countries, including Canada, the United States, the United Kingdom and European Union issued broad-ranging economic sanctions against Russia. Such sanctions (and any future sanctions) and other actions against Russia may adversely impact, among other things, the Russian economy and various sectors of the economy, including but not limited to, financials, energy, metals and mining. Accordingly, the actions discussed above and the potential for a wider conflict could increase financial market volatility and cause severe negative effects on regional and global economic markets.

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MONTERO MINING AND EXPLORATION LTD.

Management's Discussion and Analysis

For the nine months ended September 30, 2022

While we expect any direct impacts to our business to be limited, the indirect impacts on the economy and on the mining industry and other industries in general could negatively affect our business and may make it more difficult for us to raise equity or debt financing. In addition, the impact of other current macro-economic factors on our business, which may be exacerbated by the war in Ukraine - including inflation, supply chain constraints and geopolitical events - is uncertain.

1.2 OVERALL PERFORMANCE Corporate and Operational Highlights

On September 27, 2022, Montero received a positive report from Fathom Geophysics ("Fathom") from the analysis of geochemical data on the Avispa property. The report entitled "3D footprint Modelling at Avispa" has generated a 3D conceptual target indicating the possible location of porphyry copper molybdenum mineralization at depth.

On August 23, 2022, Montero announced the assay results of sampling at its 100% held Avispa property in southern Chile. Geochemical analysis of lithologies and from RC drill chip piles left by previous operators yielded copper anomalies of > 100 ppm Cu and between 10-25 ppm Mo. The Company has engaged a consulting company to undertake propriety algorithmic geochemical analysis of the results with a goal of generating 3-D targets to target possible copper molybdenum porphyry mineralization. Avispa is also assessing for its lithium, iodine, and nitrate mineral potential.

On August 16, 2022, Montero announced that the results of geological mapping confirm the potential for Cu-Mo porphyry mineralization at its 100% held Avispa Project in northern Chile. Mapping in the San Salvador River valley has confirmed that the Quaternary and Miocene cover rocks are between 20 m to 50 m thick and the underlying Cretaceous rocks are altered and intruded by porphyry rocks of unknown age. In addition, the Company collected a total of 37 lithological grab samples and completed the sampling of 48 discarded rock chips piles from historic RC drilling sites on the property. All samples were geologically logged and submitted for 48-element analysis by 4 acid digestion followed by ICP-MS analysis to assist in Cu-Mo porphyry targeting. The Company is also assessing the lithium, iodine and nitrate mineral potential of the Miocene rocks on the property.

On August 10, 2022, Montero announced the resignation of Jean des Rivieres as a member of the Board of Directors of the Company. The Board would like to thank Mr. Rivieres for his valued input.

On July 28, 2022, Montero announced an update on its fully funded arbitration proceedings against the United Republic of Tanzania over the expropriation of the Wigu Hill rare earth element project. Montero submitted a claim to the International Centre for Settlement of Investment Disputes ("ICSID") for compensation of CAD $90 million. Montero submitted its Memorial to the ICSID arbitral tribunal in May 2022 as per the time schedule agreed by the parties and the tribunal. The Memorial contains the basis for compensation to Montero for CAD $90 million including interest up to May 2022. According to the arbitral tribunal's Procedural Order No 1, Tanzania will respond to Montero's Memorial by October 2022, after which a new round of written submissions will follow in Q2 and Q3 2023.

On April 12, 2022, Montero announced an update on the arbitration proceedings against the United Republic of Tanzania over the expropriation of the Wigu Hill rare earth element project before International Centre for Settlement of Investment Disputes. The arbitral tribunal President and appointees of Montero and Tanzania held its first session on January 17, 2022, and procedural issues were reached including the timeline and timetable of the proceedings. Montero intends to file its Memorial on the merits of the case and a valuation of its claims for damages in May 2022.

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MONTERO MINING AND EXPLORATION LTD.

Management's Discussion and Analysis

For the nine months ended September 30, 2022

On March 14, 2022, Montero announces it has finalized the regulatory process for 200.8 km2 of exploration concessions. The company has subsequently finalized the regulatory process to acquire an additional 277.5km2 of concessions to hold 100% ownership over a total of 478.3 km2 area. The Company has applied for a further 87 km2 of exploration concessions.

Montero was incorporated on October 5, 2006 under the laws of British Columbia, Canada. The Companyis a public company listed on the TSX Venture Exchange and trades under the symbol MON.V. The Company's registered address is 1040 West Georgia Street, Suite 1900, Vancouver, BC, V6E 4H3 and its head office address is Suite 401 - 750 West Pender Street Vancouver, BC V6C 2T7.

The condensed interim financial statements have been prepared using International Financial Reporting Standards ("IFRS") applicable to a going concern, which assume that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As at September 30, 2022, the Company had not advanced its exploration and evaluation assets to commercial production and is not able to finance day to day activities through operations. The Company's continuation as a going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. These conditions give rise to substantial doubt about the Company's ability to continue as a going concern. When further funds are required, they will be financed through a private placement of common shares or by debt instruments.

Management has reduced operating costs including voluntary fee reductions from directors, reduced rentand administrative fees and decreased usage of administrative staff and consultants. Management has focused its exploration efforts on the projects it believes will provide the best value to shareholders. It continues its exploration work programs on projects to advance them and seeks joint venture and otherpartners for other projects where no exploration is currently being conducted.

Management believes that controlling operating expenses, funding from potential funding partners, borrowings from directors and management, and further private placements will generate the required funding to maintain operations. Although management is committed and expects to raise additional funding, the timing and the nature of the financing is uncertain and there can be no assurances that this will occur. Further details on financing alternatives available to the Company are more fully discussed in 1.6/1.7.

The Company is engaged in the identification, evaluation, acquisition, exploration, and development of quality mineral properties. The Company has not yet determined whether its exploration assets contain sufficient mineral reserves, such that their recovery would be economically viable.

As at June 5, 2020, the Company decided, due to the continued decline in battery metal prices, also exacerbated by the COVID-19 pandemic with its effect on global economics, to change its focus to gold exploration in Chile. The Company believes its best course of action given the global shut down is to divestof its battery metal projects, reduce its corporate structure while retaining its Tanzanian corporation to defend its investment and rights to the Wigu Hill rare earth project where it has made a substantial investment.

The key performance driver for Montero is to develop mineral deposits to create wealth for shareholdersby joint venture or outright sale. This will be achieved through acquiring and exploring properties which host the highest potential for future discoveries or development of existing mineral

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MONTERO MINING AND EXPLORATION LTD.

Management's Discussion and Analysis

For the nine months ended September 30, 2022

resources into mineable reserves. Management works to rationalize all its significant core holdings to maintain percentage ownership, while working with others to share the risk of development of these properties. Management acquires its exploration assets through the issuance of common shares where possible to preserve the Company's cash reserves.

Management has the necessary skills required to achieve success, both in the technical and financial area with experienced exploration and consulting geologists and those with entrepreneurial and financial experience. Shareholders are represented by a strong management and independent Board of Directors, experienced in financing, exploration, development, and mining. The Company has access to consulting geologists, metallurgical/chemical and mining engineers and corporate finance and legal counsel with commodity and country expertise in the countries where current interests are held. Consultants are retained through variable or fixed term consulting contracts.

Chilean Focus

100% Purchase of ChileCo

On August 5, 2020, the Company signed a Binding Purchase and Sale Agreement to acquire a 100% interest in a private Chilean company Minera Joy SpA ("ChileCo"). At signing, ChileCo directly held 100% of the mineral rights to 18 km2 of exploration mining concessions and two subsidiaries with 49 km2 under option agreements. No drilling had been carried out at the date of the acquisition of ChileCo.

In Subsidiary 1 Montero holds an 85% equity interest to the Isabella West exploration mining concessions. In Subsidiary 2 Montero was earning an 85% interest in the Isabella East exploitation mining however, due to poor drilling results the Company elected to terminate the earn-in option agreement on the Isabella east concession.

Isabella Gold Silver Project

The Isabella Gold Silver Project (Isabella) is located in the Southern Coastal Range of Chile Isabella is approximately 200 km south of Santiago and has excellent year-round access. The Southern Coastal Range contains numerous gold and copper occurrences hosted within a package of intermediate intrusive, sedimentary, and volcanic rocks of Mesozoic age.

Isabella hosts numerous structurally controlled quartz veins that have been mapped over an area of approximately 12 km long and 4 km wide. The veins form part of an extensive regional polymetallic Au- Ag vein and breccia system occurring in dilational fractures in the granite and along contacts with older sediments. Prior exploration at Isabella by the previous operator includes surface mapping, rock sampling, trenching, and airborne magnetics.

Montero Verification Sample Program and NI43-101 Technical Report

On September 15, 2020 Montero initiated a program designed to confirm previous assay values obtained from the prior operators of ChileCo. On October 20, 2020 Montero announced results from its verification sampling campaign. Montero's in country Qualified Person (QP) Mr. Marcial Vergara collected twenty-two (22) chip samples across selected quartz veins from the priority target areas.

On January 7, 2021 the Company filed on SEDAR the Ni 43-101 "Technical Report for the Isabella Gold Silver Project, Licanten District, Region VII, Chile" prepared by Dr Thomas Henricksen.

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