MAG Silver : 2024 Q1 MD&A

MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

Dated: May 13, 2024

VANCOUVER OFFICE		TSX: MAG
Suite 770	604 630 1399 phone	NYSE American: MAG
800 W. Pender Street	866 630 1399 toll free	[e-mail]
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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

	Table of Contents
1.	INTRODUCTION	3
2.	DESCRIPTION OF BUSINESS	4
3.	HIGHLIGHTS - MARCH 31, 2024 & SUBSEQUENT TO THE QUARTER END	4
4.	RESULTS OF JUANICIPIO	7
5.	DEER TRAIL PROJECT	13
6.	LARDER PROJECT	15
7.	OUTLOOK	18
8.	SUMMARY OF QUARTERLY INFORMATION	20
9.	REVIEW OF FINANCIAL RESULTS	21
10.	FINANCIAL POSITION	23
11.	CASH FLOWS	25
12.	NON-IFRS MEASURES	26
13.	LIQUIDITY AND CAPITAL RESOURCES	32
14.	CONTRACTUAL OBLIGATIONS	34
15.	SHARE CAPITAL INFORMATION	35
16.	OTHER ITEMS	35
17.	TREND INFORMATION	37
18.	RISKS AND UNCERTAINTIES	38
19.	OFF-BALANCE SHEET ARRANGEMENTS	38
20.	RELATED PARTY TRANSACTIONS	39

21. CRITICAL ACCOUNTING JUDGMENTS, SIGNIFICANT ESTIMATES AND

	ASSUMPTIONS	41
22.	CHANGES IN ACCOUNTING STANDARDS	41
23.	CONTROLS AND PROCEDURES	41
24.	ADDITIONAL INFORMATION	42
25.	CAUTIONARY STATEMENTS	43

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

1. INTRODUCTION

The following Management's Discussion and Analysis ("MD&A") focuses on the financial condition and results of operations of MAG Silver Corp. ("MAG", "MAG Silver" or the "Company") for the three months ended March 31, 2024 ("Q1 2024"). It is prepared as of May 13, 2024 and should be read in conjunction with the unaudited condensed interim consolidated financial statements of the Company for the three months ended March 31, 2024 ("Q1 2024 Financial Statements") together with the notes thereto which are available on the Canadian Securities Administrator's System for Electronic Data Analysis and Retrieval + ("SEDAR+") at www.sedarplus.caand on the U.S. Securities and Exchange Commission's ("SEC") website at www.sec.gov.

All dollar amounts referred to in this MD&A are expressed in thousands of United States dollars ("US$") unless otherwise stated; references to C$ refer to Canadian dollars. The functional currency of the parent, its subsidiaries and its investment in Juanicipio (as defined herein), is the US$.

The common shares of the Company trade on the Toronto Stock Exchange and on the NYSE American, LLC both under the ticker symbol MAG. MAG Silver is a reporting issuer in each of the provinces and territories of Canada and is a reporting "foreign issuer" in the United States of America.

Cautionary Statements and Risk Factors

This MD&A contains forward-looking statements (as defined herein) which should be read in conjunction with the risk factors described in section "Risks and Uncertainties" and the cautionary statements provided in section "Cautionary Statements - Cautionary Note Regarding Forward- Looking Statements" at the end of this MD&A.

Unless otherwise indicated, technical disclosure regarding the Company's properties included or incorporated by reference herein, including use of the capitalized terms "Mineral Resources" and "Mineral Reserves", has been prepared in accordance with the requirements of, and imports the meaning of such terms as defined in, National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards"), as applicable, and should be read in conjunction with the cautionary statements provided in section "Cautionary Statements - Cautionary Note for United States Investors" and "Cautionary Statements - Cautionary Note to Investors Concerning Estimates of Mineral Resources" at the end of this MD&A.

Qualified Persons

Unless otherwise specifically noted herein, all scientific or technical information in this MD&A, including assay results and Mineral Resource estimates, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Gary Methven, P.Eng., Vice President, Technical Services and Lyle Hansen, P.Geo, Geotechnical Director; both are "Qualified Persons" for the purposes of NI 43-101,Standards of Disclosure for Mineral Projects.

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

2. DESCRIPTION OF BUSINESS

MAG Silver Corp. is a growth-oriented Canadian exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (44%) investment in the 4,000 tonnes per day ("tpd") Juanicipio mine (the "Juanicipio Mine" or "Juanicipio"), operated by Fresnillo plc ("Fresnillo") (56%). The Juanicipio Mine is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where in addition to underground mine production and processing of high- grade mineralized material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG is also executing multi-phase exploration programs at the 100% earn- in Deer Trail Project (as defined below) in Utah and the 100% owned Larder Project (as defined below), located in the historically prolific Abitibi region of Canada.

3. HIGHLIGHTS - MARCH 31, 2024 & SUBSEQUENT TO THE QUARTER END KEY HIGHLIGHTS (on a 100% basis unless otherwise noted)

• MAG reported net income of $14,895 ($0.14 per share) driven by income from Juanicipio (equity accounted) of $19,244, and adjusted EBITDA1 of $32,447 for the three months ended March 31, 2024.
• A total of 325,683 tonnes of ore at a silver head grade of 476 grams per tonne ("g/t") (equivalent silver head grade2 713 g/t), was processed at Juanicipio during Q1 2024.
• Juanicipio achieved silver production and equivalent silver production2 of 4.5 and 6.4 million ounces, respectively, during Q1 2024.
• Juanicipio delivered robust cost performance with cash cost1 of $2.50 per silver ounce sold ($8.66 per equivalent silver ounce sold3), and all-in sustaining cost1 of $6.11 per silver ounce sold ($11.22 per equivalent silver ounce sold3) in Q1 2024.
• Juanicipio generated strong operating cash flow of $42,521 and free cash flow1 of $27,820 in the first quarter of 2024 after tax payments of $25,772.
• Juanicipio returned a total of $17,459 in interest and loan principal repayments to MAG during Q1 2024.

1. Adjusted EBITDA, total cash costs, cash cost per ounce, all-in sustaining costs, all-in sustaining cost per ounce and free cash flow are non-IFRS measures, please refer to "Non-IFRSMeasures" section of this MD&A for a detailed reconciliation of these measures to the Q1 2024 Financial Statements.
2. Equivalent silver head grade and equivalent silver production have been calculated using the following price assumptions to translate gold, lead and zinc to "equivalent" silver head grade and "equivalent" silver production: $23/oz silver, $1,950/oz gold, $0.95/lb lead and $1.15/lb zinc.
3. Equivalent silver ounces sold have been calculated using realized price assumptions to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices of $23.73/oz silver, $2,112.27/oz gold, $0.92/lb lead and $1.08/lb zinc.

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

• MAG published its updated technical report on Juanicipio on March 27, 2024 outlining robust economics with an after tax NPV of $1.2 billion over an initial 13-year life of mine, generating annual average free cash flow exceeding $130 million. Mineral Resources increased by 33% from the 2017 PEA, with substantial growth in Measured and Indicated categories. Inferred resources also expanded, highlighting significant near-term, high- grade upside potential. An inaugural 15.4 million tonnes Mineral Reserve Estimate at 628 g/t silver equivalent grade was declared enhancing economic confidence. Extensive exploration upside remains, with only 5% of the property explored, indicating high potential for further discoveries.
• MAG announced 2024 production and cost guidance with Juanicipio expected to produce between 14.3 million and 15.8 million silver ounces yielding between 13.2 million and 14.6 million payable silver ounces at all-in sustaining costs of between $9.50 and $10.50 per silver ounce sold. Juanicipio remains on track to achieve 2024 guidance.
• On March 22, 2024 the Company, through its Gatling Exploration Inc. subsidiary, acquired 100% ownership of the Goldstake property (contiguous to its current land holdings) from Goldstake Explorations Inc. and Transpacific Resources Inc., for consideration of C$5,000.

CORPORATE

• The Company is well underway with the preparation of its 2023 sustainability report underscoring its continued commitment to transparency with its stakeholders while providing a comprehensive overview of the Company's environmental, social and governance ("ESG") commitments, practices and performance for 2023. A copy of MAG's
  2022 sustainability report and MAG Silver 2022 ESG Data Table are available on the Company's website at https://magsilver.com/esg/reports/1.

EXPLORATION

• Juanicipio:
• • Infill drilling at Juanicipio continued in Q1 2024 from underground aimed at upgrading mineralization in areas expected to be mined in the near to mid-term. During Q1 2024, 11,271 metres were drilled from underground.
  • Surface drilling focused on expanding and upgrading the deeper zones and broader regional exploration started in April 2024.
  • During 2024, Juanicipio plans to drill a total of 50,000 metres, with 33,000 metres from underground and 17,000 metres from surface.
• Deer Trail Project, Utah:
• • On May 29, 2023 MAG started a Phase 3 drilling program focused on up to three

porphyry "hub" target areas thought to be the source of the manto, skarn,

1 Information contained in or otherwise accessible through the Company's website, including the 2022 sustainability report and MAG Silver 2022 ESG Data Table, do not form part of this MD&A and are not incorporated into this MD&A by reference.

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

epithermal mineralization and extensive alteration throughout the project area including that at the Deer Trail and Carissa zones. In late 2023 an early onset of winter snowfall impacted the commencement of the third porphyry "hub" target, which is now expected to be drilled in 2024. The two completed "hub" holes to date total 2,738 metres. Both holes intercepted alteration and mineralization in line with what is expected on the edges of porphyry systems. Follow-up drill targets are planned for summer 2024.

• • With the early onset of snowfall, Phase 4 drilling focussed on lower elevations commenced in the last quarter of 2023 and continued through Q1 2024, aimed at offsetting the Carissa discovery and testing other high-potential targets in the Deer Trail mine area. During Q1 2024, 1,208 metres were drilled at Carissa with results pending.
• Larder Project, Ontario:
• • Drilling targeting Cheminis and Bear totalled 5,391 metres in Q1 2024. Targets tested include down plunge extension of the high-grade double knuckle at the Bear East zone and extending the Cheminis south mine sequence down plunge.
  • Cheminis Update: Follow-up drilling of the Cheminis South Cadillac-Larder Break ("CLD") mine sequence down plunge is planned to test below the most recent intercepts. Hole GAT-24-026 intersected a new zone on the north side of the CLB within a fuchsite-silica-albite altered komatiite grading 3.9 g/t gold over 16 metres with 2 higher grade shoots associated with albite dykes (see Table 1 below).
  • Bear Update: Utilizing the updated model and incorporating the updated data from recent drilling, the Bear East zone was successfully extended down plunge by up to 1,100 metres depth. Hole GAT-24-024NB intersected gold mineralization on both sides of the CLB which confirms the presence of either another structural trap at depth or the continuation of the "double knuckle" zone at surface. Gold mineralization intersected on the north zone included 9.4 g/t gold over 2.2 metres within a strongly altered komatiite with syenite intrusions and 1.6 g/t gold over 4.2 metres on the south zone within the south iron-rich volcanics (see Table 1 below). Bear East remains open in all directions.

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

Table 1: 2024 Larder Drillholes Highlights

Hole ID	From	To	Length	Gold	Lithology	Target/Zone
(m)	(m)	(m)1	(g/t)
GAT-24-024NB	1233.7	1244.0	10.3	2.3	Komatiites with Syenite	North Bear Zone
Intrusions
Including	1234.1	1236.3	2.2	9.4	Syenite	North Bear Zone
and	1415.5	1419.7	4.2	1.6	South Volcanics	South Bear Zone
GAT-24-026	1127.0	1143.0	16.0	3.9	Green Komatiites with	North Cheminis Zone
Albite dykes
Including	1134.3	1135.5	1.2	9.1	Green Komatiite with	North Cheminis Zone
Albite dykes
Including	1137.4	1139.0	1.6	8.1	Green Komatiite with	North Cheminis Zone
Albite dykes

4. RESULTS OF JUANICIPIO

MAG owns 44% of Minera Juanicipio, S.A. de C.V. ("Minera Juanicipio"), a company incorporated under the laws of Mexico, which owns Juanicipio. Fresnillo is the project operator and holds the remaining 56%. On December 27, 2021, for various business reasons, the Company and Fresnillo incorporated Equipos Chaparral, S.A. de C.V. ("Equipos Chaparral") in the same ownership proportions as Minera Juanicipio for the purpose of holding the Juanicipio plant and mining equipment to be leased to Minera Juanicipio. Minera Juanicipio and Equipos Chaparral, are collectively referred to herein as "Juanicipio" or the "Juanicipio Mine".

All results of Juanicipio in this section are on a 100% basis, unless otherwise noted. The Company's attributable equity interest in Juanicipio is 44%. As the third quarter of 2023 was the first quarter of full commercial production, comparative information presented below together with associated per unit values, where applicable, are not directly comparable.

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

Operating Performance

The following table and subsequent discussion provide a summary of the operating performance of Juanicipio for the three months ended March 31, 2024 and 2023, unless otherwise noted.

Key mine performance data of Metres developed (m)

Material mined (t)

Material processed (t)

Silver head grade (g/t)

Gold head grade (g/t)

Lead head grade (%)

Zinc head grade (%)

Equivalent silver head grade (g/t)

Silver payable ounces (koz) Gold payable ounces (koz) Lead payable pounds (klb) Zinc payable pounds (klb)

Equivalent silver payable ounces

		Three months ended
Juanicipio (100% basis)	March 31,	March 31,
2024	2023
		4,069	3,450
		325,081	223,632
		325,683	222,023
		476	363
		1.33	1.07
		1.35%	0.74%
		2.50%	1.45%
(1)		713	530
		3,995	2,001
		8.90	5.29
		7,747	2,825
		11,846	3,650
(koz)	(2)	5,627	2,796

1. 1. Equivalent silver head grades have been calculated using the following price assumptions to translate gold, lead and zinc to "equivalent" silver head grade: $23/oz silver, $1,950/oz gold, $0.95/lb lead and $1.15/lb zinc (Q1 2023: $21.85/oz silver, $1,775/oz gold, $0.915/lb lead and $1.30/lb zinc).
   2. Equivalent silver payable ounces have been calculated using realized price assumptions to translate gold, lead and zinc to "equivalent" silver payable ounces (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices of $23.73/oz silver, $2,112.27/oz gold, $0.92/lb lead and $1.08/lb zinc (Q1 2023 realized prices of $22.93/oz silver, $1,959.50/oz gold, $0.94/lb lead and $1.43/lb zinc).
2. Health and Safety
   During the three months ended March 31, 2024 the Total Reportable Injury Frequency Rate (which includes Lost Time Injury and medical treatment or first aid cases reported per

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MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

1,000,000 hours worked) was 5.7 (three months ended March 31, 2023: 14.3) and the Total

Lost Time Injury Frequency Rate was 4.1 (three months ended March 31, 2023: 9.8).

On March 31, 2024 there were 2,032 employees and contractors working at Juanicipio (523 employees and 1,509 contractors), for a total of 1,217,400 hours worked during Q1 2024.

1. Underground Development
   Total underground development to the end of Q1 2024 was approximately 78.93 km (49.04 miles), including 4.07 km (2.53 miles) completed during Q1 2024. Underground mine infrastructure is well advanced and development continues to focus on:
2. • advancing the three internal spiral footwall ramps to be used to further access the Mineral Reserves over the full strike length of the Valdecañas Vein System;
   • making additional cross-cuts through the vein system and establishing new mining stopes; and
   • integrating additional ventilation and other associated underground infrastructure.
3. Mining
   During the three months ended March 31, 2024 a total of 325,081 tonnes of ore were mined. This represents an increase of 45% over Q1 2023. Increases in mined tonnages at Juanicipio have been driven by the operational ramp up of the mine towards steady state targets.
   Due to the poor rock quality on parts of the western section of the upper Valdecañas Vein, cut and fill is still being used as a mining method for the higher levels in this section. The majority of production is currently coming from longhole stopes throughout all sections of the mine, and this is the preferred mining method for the remainder of the Valdecañas Vein.
4. Processing
   During the three months ended March 31, 2024 a total of 325,683 tonnes of ore were processed through the Juanicipio plant; no ore was processed at the nearby Fresnillo and Saucito processing plants (100% owned by Fresnillo). This represents an increase of 47% over Q1 2023. The increase in milled tonnage has been driven by the Juanicipio mill commissioning and operational ramp up to nameplate capacity over the course of 2023.
   The silver head grade and equivalent silver head grade for the ore processed in the three months ended March 31, 2024 was 476 g/t and 713 g/t, respectively (three months ended March 31, 2023: 363 g/t and 530 g/t, respectively). Head grades in Q1 2023 were lower as low-grade commissioning stockpiles were processed through the Juanicipio plant. Silver metallurgical recovery during Q1 2024 was 89.1% (Q1 2023: 87.0%) reflecting ongoing optimizations in the processing plant.

9

MAG SILVER CORP.

Management's Discussion & Analysis

For the three months ended March 31, 2024

(expressed in thousands of US dollars except as otherwise noted)

1. Total cash costs and AISC
   The following table provides a summary of the total cash costs1 and all-in sustaining costs1 ("AISC") of Juanicipio for the three months ended March 31, 2024, and 2023.

						Three months ended
						March 31,	March 31,
Key mine performance data of Juanicipio (100% basis)		2024	2023
Total cash costs	(1)					9,973	22,439
Cash cost per silver ounce sold ($/oz)	(1)			2.50	11.21
Cash cost per equivalent silver ounce sold ($/oz)	(1)		8.66	14.55
All-in sustaining costs	(1)				24,393	32,902
All-in sustaining cost per silver ounce sold ($/oz)	(1)		6.11	16.44
All-in sustaining cost per equivalent silver ounce sold ($/oz)	(1)	11.22	18.29

1. Exploration Update
   The Q1 2024 Juanicipio exploration program expenditures totalled $1,368 (Q1 2023: $2,133), for drilling designed to convert the Inferred Mineral Resources into Measured and Indicated Mineral Resources and to explore other parts of the Juanicipio concession. During the quarter, 11,271 metres was drilled from underground and focused on infilling the upper parts of the Valdecañas Vein System including the Valdecañas, Ramal 1, Anticipada and Venadas veins. Surface drilling, which is designed to infill and expand Valdecañas Vein at depth and test regional targets, started in April 2024. Drilling from both underground and surface are planned to continue throughout the year, totalling approximately 50,000 metres for 2024.

1 Total cash costs, cash cost per ounce, cash cost per equivalent ounce, all-in sustaining costs, all-in sustaining cost per ounce, and all-in sustaining cost per equivalent ounce are non-IFRS measures, please refer to "Non-IFRSMeasures" section of this MD&A for a detailed reconciliation of these measures to the Q1 2024 Financial Statements. Equivalent silver ounces sold have been calculated using realized price assumptions to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Q1 2024 realized prices of $23.73/oz silver, $2,112.27/oz gold, $0.92/lb lead and $1.08/lb zinc (Q1 2023: $22.93/oz silver, $1,959.50/oz gold, $0.94/lb lead and $1.43/lb zinc).

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