Nevada Zinc : Q2 2023 MDA

NEVADA ZINC CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2023

AUGUST 29, 2023

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Introduction

The following interim management's discussion and analysis ("MD&A") of Nevada Zinc Corporation ("Nevada Zinc" or the "Company") for the three and six month periods ended June 30, 2023, has been prepared to provide material updates to the business operations, liquidity and capital resources of the Company since its last annual MD&A for the fiscal year ended December 31, 2022. 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 Company's annual MD&A, audited annual financial statements for the years ended December 31, 2022, and December 31, 2021, together with the notes thereto, and the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2023, together with the notes thereto. Results are reported in Canadian dollars, unless otherwise noted. The Company's unaudited condensed consolidated interim 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 consolidated interim financial statements have been prepared in accordance with International Standard 34, Interim Financial Reporting. Information contained herein is presented as of August 29, 2023, 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 Nevada Zinc's 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 can be obtained from the offices of the Company or on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Statements

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement. The following table outlines certain significant forward-looking statements contained in this MD&A and provides the material assumptions used to develop such forward-looking

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statements and material risk factors that could cause actual results to differ materially from the forward looking statements.

Inherent in forward-looking statements are risks, uncertainties and other factors beyond Nevada Zinc's ability to predict or control. Please also make reference to those risk factors referenced in the "Risks and Uncertainties" section below. Readers are cautioned that the above chart does not contain an exhaustive

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list of the factors or assumptions that may affect the forward-looking statements, and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Nevada Zinc's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

Description of Business

Nevada Zinc is a Canadian-based resource company focused on the exploration and development of its high grade zinc carbonate-oxide deposit located near Eureka, Nevada. The Company has a 100% ownership interest in the Lone Mountain zinc property comprised of a lease agreement (the "Lease Agreement") assigned to the Company on June 16, 2014. The Lease Agreement applies to 176 claims in Eureka County, Nevada. Under the terms of the Lease Agreement, Nevada Zinc has the right to continually lease the property for an initial 20 year term, subject to lease extensions at the end of the initial lease term and the end of subsequent lease extensions at the option of the Company. On September 30, 2015, the Company announced the purchase of the historic Mountain View Mine property that is completely surrounded by other claims held by the Company. The Mountain View Mine property is comprised of a single patented mineral claim where historic mining operations took place more than 50 years ago. As a result of the transactions described above, plus additional staking of 26 unpatented mining claims, the Company now controls 202 claims with the Lone Mountain property now aggregating to more than 4,000 acres in one of the world's top ranked mining jurisdictions. Nevada Zinc released its initial inferred resource in July 2018, and in June 2019, the Company announced positive preliminary economic assessment results for the production of zinc concentrate from its Lone Mountain zinc deposit.

Nevada Zinc is now actively assessing the potential to economically produce zinc oxide for industrial use as well as producing zinc sulfate, from the conversion of zinc oxide, for the US agricultural industry from its Lone Mountain high grade zinc carbonate-oxide deposit. This potentially represents to the Company a superior economic alternative to producing and selling zinc concentrate for the production of zinc metal. In March 2021, Nevada Zinc announced the engagement of Hazen Research, Inc. ("Hazen"), Golden, Colorado, to conduct a multiphase pilot program to determine if the Company could economically produce zinc sulfate monohydrate, a micronutrient zinc-based fertilizer and animal feed from its Lone Mountain high grade zinc carbonate-oxide deposit. In early April 2023, as the result of high levels of sulphuric acid consumption in the zinc sulfate pilot plant production process the Company shipped 10 kilograms of crushed sample material used in the zinc sulfate pilot plant work to Belzinc, a Belgium based company, for a bench scale test to determine if zinc oxide could be produced using Belzinc's proprietary process which requires significantly less sulphuric acid as well as removing the need for solvent extraction in the production process which also requires sulphuric acid and other reagents. The results of the bench scale test were successful resulting in the production of high grade zinc oxide. The Company then shipped 50 kilograms of uncrushed, unbeneficated ore from the Company's Lone Mountain deposit to Belzinc for expanded testing. The results of this testing also resulted in the successful production of high grade zinc oxide. Management believes that the ability to produce zinc sulfate from zinc oxide represents the potential to materially improve upon the economics to-date from the zinc sulfate pilot plant work by simplifying the production process and significantly reducing sulphuic acid consumption and reagent inputs through the elimination of the need to employ solvent extraction in the production process. Being in a position to produce both zinc oxide and then to convert the zinc oxide to zinc sulfate would broaden the

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markets into which the Company could potentially sell its finished zinc based products as well as reduce economic dependency on one market segment. Prices for zinc oxide are correlated to the LME zinc price while the price of zinc sulfate is correlated to supply and demand levels in the US agricultural markets. Decisions to produce either zinc oxide of zinc sulfate from the same production facility will be largely governed by the underlying prices of the two commodities from time to time.

Overall Performance

The Company had a net and comprehensive loss of $1193,723 and $475,884 for the three and six months ended June 30, 2023, compared to a net and comprehesive loss of $303,998 and $501,848 for the three and six months ended June 30, 2022. The reduction in the year over year loss for the six month period ended June 30, 2023 of $25,964 is primarily attributable to this year's reduction in salaries plus professional and consulting fees offset by an increase in consulting costs related to the zinc sulfate monohydrate pilot plant study.

The Company had consolidated exploration, acquisition and development costs of $153,831 and $412,487 and an operating loss of $193,723 and $475,752 for the three and six months ended June 30, 2023 compared to exploration, acquisition and development costs of $173,702 and $238,725 and an operating loss of $304,088 and $501,776 for the three and six months ended June 30, 2022. The Company had total assets of $24,510 (the Company expenses all of its exploration and acquisition costs), total liabilities to third parties of $582,856 and a shareholders' deficiency of $811,894 as at June 30, 2023, compared to total assets of $103,644, total liabilities to third parties of $374,427 and a shareholders' deficiency of $336,010 as at December 31, 2022.

As at June 30, 2023, the Company had current assets of $3,137 compared to current assets of $82,271, as at December 31, 2022, and current liabilities to third parties of $582,856 as at June 30, 2023, compared to current liabilities to third parties of $374,427 as at December 31, 2022, resulting in a working capital deficit of $579,719 as at June 30, 2023, compared to a working capital deficit of $292,156 as at December 31, 2022.

Significant Developments

On March 29, 2023 the Company announced the successful production, on a continuous basis, of high- grade zinc sulfate monohydrate from its multiphase pilot plant project using sample material provided from the Company's Lone Mountain deposit. In an attempt to reduce the consumption of sulphuric acid as well as reagent inputs in the solvent extraction process used in the pilot plant production process the Company began testing the production of zinc oxide using a proprietary third party production process.

On May 15, 2023 the Company announced that bench scale testing using 10 kilograms of sample material from the zinc sulfate pilot plant study sent to BelZinc had resulted in the successful production of high grade zinc oxide. Further testing by BelZinc, to determine scalability, using 50 kilograms of representative sample ore directly from the Company's Lone Mountain deposit began in late May. The results of this expanded testing also resulted in the successful production of high grade zinc oxide. Zinc oxide is consumed by smelters in the production of zinc metal and has many other industrial applications. Additionally, zinc oxide and can also be converted to zinc sulfate monohydrate without requiring the consumption of high levels of sulphuric acid. The market for zinc oxide is significantly larger than the market for zinc sulfate which as a fertilizer is subject to seasonal demand fluctuations.

On August 10, 2023, on the heels of two successful testing phases carried out by BelZinc, which both resulted in the production of high grade zinc oxide, Nevada Zinc announced that it had executed a letter of intent with Belgium based Belzinc to form a strategic partnership. The objective of the partnership is to produce zinc oxide from ore provided from the Company's Lone Mountain zinc deposit utilizing BelZinc's proprietary production

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