New Risk • Aug 14
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$3.0m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$3.0m free cash flow). Earnings have declined by 10% per year over the past 5 years. Shareholders have been substantially diluted in the past year (80% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Market cap is less than US$100m (CA$13.9m market cap, or US$10.0m). New Risk • Aug 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (72% accrual ratio). Shareholders have been substantially diluted in the past year (80% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$11.0m market cap, or US$7.80m). Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). Announcement • Jul 15
Cartier Silver Corporation Commences Second-Phase Diamond Drilling At Chorrillos High-Grade Silver-Lead-Zinc Project Cartier Silver Corporation has commenced a second-phase diamond drilling campaign at its Chorrillos high-grade silver-lead-zinc project. The 5,000 metre program will comprise approximately 12 drill holes and will be followed by a structured underground dewatering and rehabilitation program at the previously active Mina Central underground mine. The program is designed to expand known mineralization within the existing high-grade silver vein system, some of which has been mined since the colonial era, and identify new mineralized structures at the Mina Central, Quimbalete, Hoyada and Felicidad zones. The dewatering and rehabilitation program at the former Mina Central underground mine is expected to commence in late August or early September. Following the successful resolution of the recent road blockades through agreements reached between the Bolivian government and labour unions, transportation routes have reopened, allowing the uninterrupted delivery of essential supplies, including diesel fuel, enabling the company to proceed with planned exploration activities. Details of the drilling campaign are presented in Table 1, including location coordinates, depths, and specific targets for each drillhole. Drillhole DGL-04 is targeting the southern projection of Central vein system for exploration of new mineralized structures at a depth of 500m. Drillhole DGL-05 is targeting the southern projection of Central vein system for exploration of new mineralized structures at a depth of 450m. Drillhole DGL-06 is targeting the projection to depth of Quimbalete vein at 200m. Drillhole DGL-07 is targeting the projection to depth of Quimbalete vein at 150m. Drillhole DGL-08 is targeting the projection to depth of Quimbalete vein at 150m. Drillhole DGL-09 is targeting exploration of a geophysical and geochemical anomalies at 150m. Drillhole DGL-10 is targeting to intersect three vein-type structures of similar trend of Central Vein at 700m. Drillhole DGL-11 is targeting the southern projection of Central vein system for exploration of new mineralized structures at a depth of 500m. Drillhole DGL-12 is targeting to intersect three vein-type structures of similar trend of Central Vein at 600m. Drillhole DGL-13 is targeting to intersect three vein-type structures of similar trend of Central Vein at 600m. Drillhole DFL-01 is targeting to intercept the mineralized trend system with the projection of the Felicidad vein at 500m. Drillhole DFL-02 is targeting to intercept the mineralized trend system with the projection of the Felicidad vein at 500m. The total drilling program is 5,000m. Cartier Silver utilized both ALS and AHK for drill core analyses, both of whom are major international accredited laboratories. Drill samples sent to ALS were prepared in both ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia and the preparation facility operated by AHK in Tupiza with pulps sent to the main ALS Global laboratory in Lima for analysis. Drill core samples sent to AHK Laboratories are also prepared by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Silver (Ag), zinc (Zn) and lead (Pb) are analyzed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) using a four-acid digestion; Sn is analyzed by X-Ray Fluorescence (XRF) and Au is analyzed by fire assay on 50g pulps with an Atomic Absorption Spectroscopy (AAS) finish. AAS measures absorbed light to quantify elements, while ICP, such as ICP-OES or ICP-MS, measure emitted light or ions to determine elements. XRF uses fluorescent X-rays to excite atoms and to emit X-rays that reveal the presence and concentration of tin. Sample size in ICP typically ranges from 100 mg (0.1 g) to 1 g, for AAS, is usually less than 100 mg (0.1 g) and for XRF is ideally below 75 µm. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols except for Sn for which a sodium peroxide fusion is used at AHK following by ICP. Check comparisons of Sn results from ALS and ALS indicate no statistically significant difference between results using the two different analytical techniques. Cartier employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed at both laboratories with selected check samples sent to a separate accredited laboratory. Check results are regularly monitored. 
