40-F

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 40-F

¨	REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
	OR
x	ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2018 Commission File Number: 001-35043

GREAT PANTHER MINING LIMITED

(Exact name of Registrant as specified in its charter)

British Columbia, Canada	1040	98-1020854
(Province or Other Jurisdiction of Incorporation or Organization)	(Primary Standard Industrial Classification Code)	(I.R.S. Employer Identification No.)

1330 – 200 Granville Street
Vancouver, British Columbia, Canada V6C 1S4
Tel: 604-608-1766

(Address and telephone number of Registrant’s principal executive offices)

National Registered Agents, Inc.
875 Avenue of the Americas, Suite 501
New York, New York 10001

Tel: 1-800-550-6724

(Name, address (including zip code) and telephone number (including
area code) of agent for service in the United States)

Securities registered or to be registered pursuant to section 12(b) of the Act:

Title Of Each Class	Name Of Each Exchange On Which Registered
Common Shares, no par value	NYSE American Equities Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

x Annual Information Form x Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the Company’s classes of capital or common stock as of the close of the period covered by the annual report: 169,165,007 Common Shares as at December 31, 2018

Indicate by check mark whether the Company by filing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the “Exchange Act”). If “yes” is marked, indicate the file number assigned to the Company in connection with such Rule.

Yes   ¨         No  x

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x         No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

Yes  ¨         No  ¨          Not applicable  x

ANNUAL INFORMATION FORM, AUDITED FINANCIAL STATEMENTS AND MD&A

Great Panther Mining Limited (the “Company”), a Canadian public company whose common shares are listed on the Toronto Stock Exchange and the NYSE American Equities Exchange (the “NYSE American”). It is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act, and is eligible to file this annual report on Form 40-F pursuant to the multi-jurisdictional disclosure system.

The following documents of the Company are filed as exhibits to, and incorporated by reference into, this Annual Report:

Document	Exhibit No.
Annual Information Form of the Company for the year ended December 31, 2018 (the “AIF”)	99.1 (1)
Audited consolidated financial statements of the Company for the years ended December 31, 2018 and 2017, including the reports of the auditor with respect thereto	99.2 (1)
Management’s Discussion and Analysis of the Company for the year ended December 31, 2018 (the “MD&A”)	99.3 (1)

(1) Filed as an exhibit hereto.

Pursuant to Rule 3a12-3 under the Exchange Act, the Company’s equity securities are exempt from sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this document constitute “forward-looking statements” within the meaning of the United States "Private Securities Litigation Reform Act" of 1995 and “forward-looking information” within Canadian securities laws (collectively, “forward-looking statements”). All statements, other than statements of historical fact, addressing activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the words “anticipates”, “believes”, “expects”, “may”, “likely”, “plans”, “intends”, “expects”, “may”, “forecast”, “project”, “budgets”, “potential”, and “outlook”, or similar words, or statements that certain events or conditions “may”, “might”, “could”, “can”, “would”, or “will” occur. Forward-looking statements reflect the Company’s current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

In particular, this Annual Report on Form 40-F includes forward-looking statements as noted throughout the document.  These relate to estimates, forecasts, and statements as to management’s expectations with respect to the future production of silver, gold, lead and zinc; profit, operating costs and cash flow; grade improvements, sales volume and selling prices of products; capital and exploration expenditures, plans, timing, progress and expectations for the development of the Company’s mines and projects; progress in the development of mineral properties; the timing of production and the cash and total costs of production; sensitivity of earnings to changes in commodity prices and exchange rates; the impact of foreign currency exchange rates; the impact of taxes and royalties; expenditures to increase or determine reserves and resources; sufficiency of available capital resources; expansions and acquisition plans; and the future plans and expectations for the Company’s properties and operations.  Examples of specific information in this Annual Report on Form 40-F that may constitute forward-looking statements are:

Corporate and Operations: 

• Expectations of the Company’s silver equivalent ounce production for 2019;

• Guidance for cash cost and all-in-sustaining cost (“AISC”) for 2019;

• Guidance for capital expenditures and EE&D expenses for 2019 and beyond for each of the Company’s operating mines and projects;

• Expectations that cash flows from operations along with current net working capital will be sufficient to fund capital investment and development programs for the foreseeable future;

• Expectations regarding access to additional capital to fund additional expansion or development plans, or to undertake an acquisition; and

• Expectations in respect of permitting and development activities.

GMC:

• The compilation and submission of technical information to CONAGUA, and CONAGUA’s review of such information is expected to continue;

• Expectations that the current tailings footprint at GMC can be maintained and can support operations at GMC until at least 2021;

• Expectations that permits associated with the use and expansion of the TSF at GMC will be granted in due course and in favourable terms, with no suspension of GMC operations;

Topia:

• Expectations that permits associated with the use of the TSF at Topia will continue to be granted in due course, with no suspension of Topia operations;

• Expectations regarding the completion of the Phase II TSF at Topia;

• Expectations regarding increasing the processing capacity from Topia in 2019;

• Expectations that any potential gaps in existing compliance associated with the ongoing environmental review of Topia’s operations will be capable of being addressed through a mitigation plan;

• The expectation that any mitigation measures that may arise from the PROFEPA audit of Topia will extend through 2019 and beyond;

Coricancha:

• The expectation that pending proposals for modification of an approved closure plan for Coricancha will conclude with the approval of the authorities, which will also resolve any related fines or penalties;

• The Company’s plans for Coricancha, including further evaluations of the current mine and processing infrastructure, mine rehabilitation and development in preparation for underground drilling and environmental studies and the results of the planned technical, economic and environmental studies;

• Expectations regarding the outcome of Coricancha’s Bulk Sample Program;

• Expectations that the Company is anticipating to be able to make a decision by the end of March 2019 to commence the restart of Coricancha;

• Expectations regarding the costs to restart Coricancha;

• Expectations regarding the reclamation process at Coricancha;

Beadell:

• Expectations regarding the timing of updating the 2019 outlook and guidance to include Tucano;

• Expectations regarding the permitting, development, exploration and operating plans for Tucano  ;

These forward-looking statements are necessarily based on a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  The assumptions made by the Company in preparing the forward looking information contained in this Annual Report on Form 40-F, which may prove to be incorrect, include, but are not limited to, general business and economic conditions; the supply and demand for, deliveries of, and the level and volatility of prices of silver, gold, lead and zinc; expected exchange rates; the timing of the receipt of regulatory and governmental approvals for development projects and other operations; costs of production, and production and productivity levels; estimated future capital expenditures and cash flows; the continuing availability of water and power resources for operations; the accuracy of the interpretation and assumptions used in calculating reserve and resource estimates (including with respect to size, grade and recoverability); the accuracy of the information included or implied in the various independently produced and published technical reports; the geological, operational and price assumptions on which these technical reports are based; conditions in the financial markets; the ability to attract and retain skilled staff; the ability to procure equipment and operating supplies and that there are no material unanticipated variations in the cost of energy or supplies; the ability to secure contracts for the sale of the Company’s products (metals concentrates); the execution and outcome of current or future exploration activities; that current financial resources will be sufficient for planned activities and to complete further exploration programs; the possibility of project delays and cost overruns, or unanticipated excessive operating costs and expenses; the Company’s ability to maintain adequate internal control over financial reporting, and disclosure controls and procedures; the ability of contractors to perform their contractual obligations; operations not being disrupted by issues such as mechanical failures, labour or social disturbances, illegal occupations and adverse weather conditions; that financial resources will be sufficient to fund new acquisitions, if any; the impact of the implementation of the scheme of arrangement with Beadell on the Company’s earnings; mineral reserves and resources estimated enterprise value and growth rate; the expected strategic integration opportunities and other synergies as a result of the implementation of the scheme and the expected financial and other benefits therefrom; permitting, development and expansion at Tucano, including the preparation of any feasibility studies, preceding on a basis consistent with current expectations and obtaining of services necessary to operate Tucano, in amounts and at prices to ensure the Tucano can be operated in an efficient manner; and the future plans and expectations for the Company’s properties and operations.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.  Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, changes in commodity prices; changes in foreign currency exchange rates; acts of foreign governments; political risk; labor or social unrest; uncertainties related to title to the Company’s mineral properties and the surface rights thereon, including the Company’s ability to acquire, or economically acquire, the surface rights to certain of the Company’s exploration and development projects; unanticipated operational difficulties due to adverse weather conditions, failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters; failure of counterparties to perform their contractual obligations; delays in obtaining necessary permits for extension of operations; an unfavourable decision by the MEM with respect to the proposed modification to the Coricancha reclamation plan; adverse results of the technical, economic and environmental studies to be completed for Coricancha; inability to maintain or obtain permits for operations; and deterioration of general economic conditions, and other risks described in the Company’s most recent Form 40-F/AIF.

Readers are advised to carefully review and consider the risk factors identified in this Annual Report on Form 40-F under the heading “Risk Factors” for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.  Readers are further cautioned that the foregoing list of assumptions and risk factors is not exhaustive and it is recommended that prospective investors consult the more complete discussion of the Company’s business, financial condition and prospects that is included in this Annual Report on Form 40-F. 

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this Annual Report on Form 40-F.  The Company will update forward-looking statements and information if and when, and to the extent, required by applicable securities laws.  Readers should not place undue reliance on forward-looking statements.  The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING
ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

As a British Columbia corporation and a “reporting issuer” under Canadian securities laws, the Company is required to provide disclosure regarding its mineral properties in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. In accordance with NI 43-101, the Company uses the terms Mineral Reserves and Resources as they are defined in accordance with the CIM Definition Standards on Mineral Reserves and Resources (the “CIM Definition Standards”) adopted by the Canadian Institute of Mining, Metallurgy and Petroleum.

The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the United States Securities and Exchange Commission (the “SEC”) under the U.S. Exchange Act. These amendments became effective February 25, 2019 (the “SEC Modernization Rules”). The SEC Modernization Rules have replaced the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7 (“Guide 7”), which have been rescinded. The Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules as the Company is presently a “foreign issuer” under the U.S. Exchange Act and entitled to file continuous disclosure reports with the SEC under the MJDS Disclosure System between Canada and the United States.

The SEC Modernization Rules include the adoption of terms describing Mineral Reserves and Mineral Resources that are substantially similar to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, SEC will now recognize estimates of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources. In addition, the SEC has amended its definitions of Proven Mineral Reserves and Probable Mineral Reserves to be substantially similar to the corresponding CIM Definitions.

United States investors are cautioned that while the above terms are substantially similar to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any Mineral Reserves or Mineral Resources that the Company may report as Proven Reserves, Probable Reserves, Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

United States investors are also cautioned that while the SEC will now recognize Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources, investors should not to assume that any part or all of the mineralization in these categories will ever be converted into a higher category of Mineral Resources or into Mineral Reserves. Mineralization described using these terms has a greater amount of uncertainty as to their existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any Measured Mineral Resources, Indicated Mineral Resources, or Inferred Mineral Resources that the Company reports are or will be economically or legally mineable.

Further, Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the Inferred Mineral Resources exist. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

For the above reasons, information contained in this Annual Report and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

NOTE TO UNITED STATES READERS REGARDING DIFFERENCES
BETWEEN UNITED STATES AND CANADIAN REPORTING PRACTICES

The Company is permitted to prepare this Annual Report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, which differ in certain respects from United States generally accepted accounting principles (“US GAAP”) and from practices prescribed by the SEC. Therefore, the Company’s financial statements incorporated by reference in this Annual Report may not be comparable to financial statements prepared in accordance with US GAAP.

CURRENCY

Unless otherwise indicated, all dollar amounts in this Annual Report are in United States dollars. The exchange rate of United States dollars into Canadian dollars on December 31, 2018 (the last business day of the year), based upon the noon rate published by the Bank of Canada, was US$1.00=CDN$1.3642. The exchange rate of United States dollars into Canadian dollars, on March 20, 2019, based upon the noon rate as published by the Bank of Canada, was US$1.00=CDN$1.3317. 

DISCLOSURE CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls and procedures are defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act to mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Evaluation of Disclosure Controls and Procedures

At the end of the period covered by this Annual Report on Form 40-F, being the fiscal year ended December 31, 2018, an evaluation was carried out under the supervision of and with the participation of the Company’s management (“Management”), including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation the CEO and the CFO have concluded that, as of the end of the period covered by this Annual Report, the Company’s disclosure controls and procedures were effective to give reasonable assurance that the information required to be disclosed by the Company in reports that it files or submits to the SEC under the Exchange Act is:

· recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

· accumulated and communicated to Management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Internal Control over Financial Reporting

Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act as a process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers and effected by the issuer’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

· pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

· provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that may have a material effect on the financial statements.

The Company’s internal control system is designed to provide reasonable assurance to Management and the board of directors (“Board of Directors”) regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness of internal control over financial reporting to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management’s Assessment of Internal Control over Financial Reporting

The Company’s Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this evaluation, Management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2018.

The Board of Directors is responsible for ensuring that Management fulfills its responsibilities. The Company’ audit committee (“Audit Committee”) fulfills its role of ensuring the integrity of the reported information through its review of the interim and annual financial statements. Management reviewed the results of their assessment with the Company’s Audit Committee.

Attestation Report

KPMG LLP has audited the Company’s internal control over financial reporting and has issued an attestation report on the Company’s internal control over financial reporting which is included with the Company’s audited financial statements which are attached as Exhibit 99.2 to this Annual Report on Form 40-F.

Changes in Internal Control over Financial Reporting

During the three months ended September 30, 2018, the Company determined that a material weakness in internal control over financial reporting existed as a result of misstatements identified by the Company’s auditors during their interim review of the September 30, 2018 interim financial statements. The misstatements were corrected in the September 30, 2018 interim financial statements and there is no material effect on previously issued financial statements. The control weakness related to the ineffective operation of control activities designed to identify material errors in the application of IFRS for changes in the reclamation and remediation provision and reimbursement rights. As at December 31, 2018, the Company has remediated this matter, which included implementing enhanced review activities over the application of IFRS in these areas as part of the financial close process.

Other than described above, there have been no changes in internal controls over financial reporting that occurred during the year ended December 31, 2018, that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

NOTICES PURSUANT TO REGULATION BTR

The Company did not send any notices required by Rule 104 of Regulation BTR during the year ended December 31, 2018 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

CORPORATE GOVERNANCE

The Company is subject to corporate governance requirements prescribed under applicable Canadian securities laws, rules and policies. The Company is also subject to corporate governance requirements prescribed by the listing standards of the NYSE AMERICAN, and the rules and regulations promulgated by the SEC under the Exchange Act (including those applicable rules and regulations mandated by the Sarbanes-Oxley Act of 2002).

Section 110 of the NYSE AMERICAN Company Guide permits NYSE AMERICAN to consider the laws, customs and practices of foreign issuers in relaxing certain NYSE AMERICAN listing criteria, and to grant exemptions from NYSE AMERICAN listing criteria based on these considerations. A company seeking relief under these provisions is required to provide written certification from independent local counsel that the non-complying practice is not prohibited by home country law.

Section 123 of the NYSE AMERICAN Company Guide recommends that the quorum for meetings of shareholders of a listed company be not less than 33-1/3% of the issued and outstanding shares entitled to vote at a meeting of shareholders. Upon listing, the Company received an exemption from this listing standard. The Company’s quorum requirement is specified in its corporate charter as two persons who are, or who represent by proxy, shareholders.

Section 713 of the NYSE AMERICAN Company Guide requires that the Company obtain the approval of its shareholders for share issuances equal to 20 percent or more of presently outstanding shares for a price which is less than the greater of book or market value of the shares. This requirement does not apply to public offerings. There are no such requirements under British Columbia corporate law. However, under the rules of the Toronto Stock Exchange (the “TSX”), the Company’s home stock exchange, shareholder approval is required for certain issuances of shares that (i) materially affect control of the Company, or (ii) provide consideration to insiders in aggregate of 10% or greater of the market capitalization of the Company in transactions that have not been negotiated at arm’s length.  Shareholder approval is also required under TSX rules for private placements in circumstances where (i) the aggregate number of listed securities issuable is greater than 25% of the number of securities of the listed issuer which are outstanding, on a non-diluted basis, prior to the date of closing of the transaction if the price per security is less than the market price, and (ii) there are issuances during any six month period to insiders for listed securities or options, rights or other entitlements to listed securities greater than 10% of the number of securities of the listed issuer which are outstanding, on a non-diluted basis, prior to the date of the closing of the first private placement to an insider during the six month period. The Company intends to seek a waiver from NYSE AMERICAN’s section 713 requirements should a dilutive private placement financing trigger the NYSE AMERICAN shareholders’ approval requirement in circumstances where the same financing does not trigger such a requirement under British Columbia law or under TSX rules.

The Company believes that there are otherwise no significant differences between its corporate governance policies and those required to be followed by United States domestic issuers listed on the NYSE AMERICAN. In particular, in addition to having a separate Audit Committee, the Company’s Board of Directors has established a separately-designated Compensation Committee that materially meets the requirements for a compensation committee under section 805 of the NYSE AMERICAN Company Guide, as currently in force.

Copies of the Company’s corporate governance materials are available on the Company’s website at www.greatpanther.com (under the Corporate/Governance/Governance and Policies tab). In addition, the Company is required by National Instrument 58-101 of the Canadian Securities Administrators, Disclosure of Corporate Governance Practices, to describe its practices and policies with regard to corporate governance in management information circulars that are furnished to the Company’s shareholders in connection with annual meetings of shareholders.

AUDIT COMMITTEE

Composition of the Audit Committee

The Company's Board of Directors has a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act and Section 803(B)(2) of the NYSE AMERICAN Company Guide. The Company's Audit Committee comprises four directors that the Board of Directors have determined are independent as determined under each of Rule 10A-3 under the Exchange Act and Section 803(A) of the "NYSE American" Company Guide:

· Elise Rees (Chair)

· R. W. (Bob) Garnett

· Jeffrey Mason

· John Jennings

All four members of the Audit Committee are financially literate, meaning they are able to read and understand the Company's financial statements and to understand the breadth and level of complexity of the issues that can reasonably be expected to be raised by the Company's financial statements. The Audit Committee meets the composition requirements set forth by Section 803(B)(2) of NYSE AMERICAN Company Guide.

Audit Committee Charter

The full text of the Charter of the Audit Committee is attached as Schedule A to the Company's Annual Information Form which is filed as Exhibit 99.1 to this Annual Report. The Charter of the Audit Committee is also available on the Company’s website at www.greatpanther.com (under the links Corporate > Corporate Governance and Policies).

Audit Committee Financial Expert

The Company’s Board of Directors has determined that both Elise Rees and Bob Garnett, are audit committee financial experts (as that term is defined in General Instruction B(8) of Form 40-F).

CODE OF BUSINESS CONDUCT AND ETHICS

Adoption of Code of Ethics

The Company has adopted a Code of Business Conduct and Ethics (the “Code of Ethics”) for all its directors, executive officers and employees. The Code of Ethics materially complies with Section 807 of the NYSE AMERICAN Company Guide. The Code of Ethics meets the requirements for a “code of ethics” within the meaning of that term in Form 40-F. The text of the Code of Ethics is posted on the Company's website at www.greatpanther.com (under the links Corporate > Corporate Governance and Policies).

Amendments or Waivers

During the fiscal year ended December 31, 2018, the Company did not substantively amend, waive or implicitly waive any provision of the Code of Ethics with respect to any of the directors, executive officers or employees subject to it.

To the extent that the Company's board or a board committee determines to grant any waiver of the Code of Ethics for an executive officer or director, the commentary to Section 807 of the NYSE AMERICAN Company Guide requires that the waiver must be disclosed to shareholders within four business days of such determination.

All amendments to the Code of Ethics, and all waivers of the Code of Ethics with respect to the Company’s principal executive officer, principal financial officer or other persons performing similar functions, will be posted on the Company’s website, submitted to the SEC on Form 6-K and provided in print to any shareholder that provides the Company with a written request addressed to the Company’s Corporate Secretary.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information relating to the Company’s principal accountant fees and services that is included under the heading “Audit Committee Information – External Auditor Service Fees” in the 2018 Annual Information Form is hereby incorporated by reference herein. In addition, the information relating to the Audit and Risk Committee’s pre-approval policies and procedures that is included under the heading “Audit Committee Information – Pre-Approval Policy” in the 2018 Annual Information Form is hereby incorporated by reference herein.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has not entered into any “off-balance sheet arrangements”, as defined in General Instruction B(11) to Form 40-F, that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

CONTRACTUAL OBLIGATIONS

The Company's contractual obligations as at December 31, 2018 are presented in note 21(a) of the audited financial statements which are attached as Exhibit 99.2 of this Annual Report on Form 40-F.

MINE SAFETY DISCLOSURE

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities under the regulation of the Federal Mine Safety and Health Act of 1977.

The Company did not have any mines in the United States during the fiscal year ended December 31, 2018.

UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

Undertaking

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to:

· the securities registered pursuant to Form 40-F;

· the securities in relation to which the obligation to file an annual report on Form 40-F arises; or

· transactions in said securities.

Consent to Service of Process

Concurrently with the filing of its Annual Report on Form 40-F with the SEC on March 14, 2013, the Company filed an Appointment of Agent for Service of Process and Undertaking on Form F-X signed by the Company and its agent for service of process with respect to the class of securities in relation to which the obligation to file this annual report arises.

Any change to the name or address of the Company’s agent for service shall be communicated promptly to the Commission by amendment to Form F-X referencing the file number of the Company.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Company certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

	GREAT PANTHER MINING LIMITED
Date: March 20, 2019
	By:	/s/ James M. Bannantine
		James M. Bannantine
		Chief Executive Officer and President

EXHIBIT INDEX

Exhibit No.	Exhibit Description
Principal Documents
99.1	Annual Information Form of the Company for the year ended December 31, 2018
99.2	Audited consolidated financial statements of the Company and the notes thereto for the fiscal years ended December 31, 2018 and 2017 together with the reports of the auditors thereon
99.3	Management’s Discussion and Analysis of the Company for the year ended December 31, 2018
Certifications
99.4	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act
99.5	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
99.6	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.7	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Consents
99.8	Consent of KPMG LLP, Independent Registered Public Accounting Firm
99.9	Consent of Robert F. Brown, author of the February 28, 2019 NI 43-101 Report on the Topia Mine Mineral Resource Estimation as of July 31, 2018 and the February 20, 2017 NI 43-101 Technical Report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”.
99.10	Consent of Ronald Turner, co-author of the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.
99.11	Consent of Daniel A. Saint Don, co-author of the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.
99.12	Consent of Jeffrey L. Woods, co-author of the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.
99.13	Consent of Matthew C. Wunder, author of the 2018 NI 43-101 Technical Report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine and San Ignacio Mine, Guanajuato State, Mexico” dated February 28, 2018.
99.14	Consent of Brian R. Wolfe, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.

99.15	Consent of Gary Methven, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.
99.16	Consent of Juan Jose Moreno Dellepiane, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.
99.17	Consent of Nigel Spicer, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.
99.18	Consent of Raymond H. Walton, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.
99.19	Consent of Ruy Lacourt Rodrigues, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.
99.20	Consent of Marcelo Antonio Batelochi, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.
99.21	Consent of Peter O’Bryan, co-author of the NI 43-101 Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil” dated October 31, 2018.

EX-99.1

Exhibit 99.1

GREAT PANTHER MINING LIMITED

ANNUAL INFORMATION FORM

FOR THE YEAR ENDED DECEMBER 31, 2018

March 20, 2019

Great Panther Mining Limited

Annual Information Form for the year ended December 31, 2018

Contents

Contents		2
1.	PRELIMINARY NOTES	4
1.A.	DATE OF INFORMATION	4
1.B.	NOMENCLATURE	4
1.C.	CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS	4
1.D.	FINANCIAL INFORMATION	6
1.E.	TECHNICAL INFORMATION	6
1.F.	CANADIAN MINERAL PROPERTY STANDARDS AND RESERVE/ RESOURCE ESTIMATES	6
1.G.	CAUTIONARY NOTES TO U.S. INVESTORS REGARDING RESOURCE AND RESERVE ESTIMATES	8
1.H.	GLOSSARY OF TERMS AND UNITS OF MEASURE	9
2.	CORPORATE STRUCTURE	13
2.A.	NAME, ADDRESS AND INCORPORATION	13
2.B.	INTERCORPORATE RELATIONSHIPS	13
3.	GENERAL DEVELOPMENT OF THE BUSINESS	14
3.A.	GENERAL	14
3.B.	THREE-YEAR HISTORY	15
3.C.	SIGNIFICANT ACQUISITIONS	19
4.	DESCRIPTION OF THE BUSINESS	20
4.A.	PRINCIPAL MARKETS	20
4.B.	PRODUCT MARKETING, SALES AND DISTRIBUTION	21
4.C.	SEASONALITY	22
4.D.	SPECIALIZED SKILL AND KNOWLEDGE	23
4.E.	COMPETITIVE CONDITIONS	23
4.F.	DOING BUSINESS IN MEXICO AND PERU	23
4.G.	ENVIRONMENTAL PROTECTION	25
4.H.	EMPLOYEES	25
4.I.	COMMUNITY ENGAGEMENT AND SUSTAINABLE DEVELOPMENT	26
5.	MINING PROPERTIES	26
5.A.	GUANAJUATO MINE COMPLEX	26
5.B.	TOPIA	43
5.C.	TUCANO GOLD MINE	51
6.	ADVANCED-STAGE PROJECTS	60
6.A.	CORICANCHA MINE COMPLEX ("CORICANCHA")	60
7.	PRIMARY EXPLORATION PROPERTIES	73
8.	RISK FACTORS	80
9.	DIVIDENDS	100
10.	DESCRIPTION OF CAPITAL STRUCTURE	100
11.	MARKET FOR SECURITIES	101
11.A.	TRADING PRICE AND VOLUME	101
12.	ESCROWED SECURITIES	102
13.	DIRECTORS AND OFFICERS	103

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 2

13.A.	NAMES, OCCUPATIONS AND SECURITY HOLDINGS	103
13.B.	CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS	106
13.C.	CONFLICTS OF INTEREST	107
14.	AUDIT COMMITTEE INFORMATION	108
14.A.	AUDIT COMMITTEE CHARTER	108
14.B.	MEMBERS OF THE AUDIT COMMITTEE	108
14.C.	PRE-APPROVAL POLICY	109
14.D.	EXTERNAL AUDITOR SERVICE FEES	110
15.	LEGAL PROCEEDINGS AND REGULATORY ACTIONS	110
16.	INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	111
17.	TRANSFER AGENTS AND REGISTRARS	111
18.	MATERIAL CONTRACTS	111
19.	INTERESTS OF EXPERTS	111
20.	ADDITIONAL INFORMATION	113
SCHEDULE “A” CHARTER OF THE AUDIT COMMITTEE		114

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 3

1. PRELIMINARY NOTES

1.A. DATE OF INFORMATION

Unless otherwise identified, all information contained in this Annual Information Form (“AIF”) is as at December 31, 2018.

1.B. NOMENCLATURE

In this AIF, unless the context otherwise dictates, “Great Panther” or the “Company” refers to Great Panther Mining Limited, and its subsidiaries, Minera Mexicana El Rosario SA de CV (“MMR”), Metálicos de Durango SA de CV (“MDU”), Minera de Villa Seca SA de CV (“MVS”), Great Panther Coricancha SA, Coboro Minerales de Mexico SA de CV (“Coboro”), Cangold Limited (“Cangold”), Great Panther Silver Peru SAC (“GP Peru”), Great Panther Finance Canada Limited, GP Finance International sàrl, Beadell Resources Ltd., Beadell Brasil Ltda, Beadell (Brazil) Pty Ltd, Beadell (Brazil 2) Pty Ltd, Beadell Resources (Holdings) Ltd, Beadell Resources Mineração Ltda, Beadell Resources Mineração (Holdings) Ltd, Mineração Serra da Canga Ltda, Marina Norte Empreendimentos de Mineração S.A., Mineração Vale dos Reis Ltda and Tartarugalzinho Mineração Ltda.

1.C. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this AIF constitute “forward-looking information” within the meaning of Canadian securities laws. Forward-looking statements are often, but not always, identified by the words “anticipates”, “believes”, “expects”, “may”, “likely”, “plans” and similar words. Forward-looking statements reflect the Company’s current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

In particular, this AIF includes forward-looking statements as noted throughout the document. These relate to estimates, forecasts, and statements as to management’s expectations with respect to the future production of silver, gold, lead and zinc; profit, operating costs and cash flow; grade improvements, sales volume and selling prices of products; capital and exploration expenditures, plans, timing, progress and expectations for the development of the Company’s mines and projects; progress in the development of mineral properties; the timing of production and the cash and total costs of production; sensitivity of earnings to changes in commodity prices and exchange rates; the impact of foreign currency exchange rates; the impact of taxes and royalties; expenditures to increase or determine reserves and resources; sufficiency of available capital resources; expansions and acquisition plans; the impact of the implementation of the scheme of arrangement (“Scheme”) with Beadell Resources Limited (“Beadell”) on Great Panther’s earnings, Mineral Reserves and resources estimated enterprise value and growth rate; the expected strategic and integration opportunities and other synergies as a result of the implementation of the Scheme and the expected financial and other benefits therefrom; permitting, development and expansion at the Tucano Gold Mine (“Tucano”), including the preparation of any feasibility studies, proceeding on a basis consistent with current expectations and obtaining of services necessary to operate Tucano, in amounts and at prices to ensure Tucano can be operated in an efficient manner; and the future plans and expectations for the Company’s properties and operations.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 4

These forward-looking statements are necessarily based on a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The assumptions made by the Company in preparing the forward looking information contained in this AIF, which may prove to be incorrect, include, but are not limited to, general business and economic conditions; the supply and demand for, deliveries of, and the level and volatility of prices of silver, gold, lead and zinc; expectations regarding recoveries from Nyrstar in relation to its Coricancha indemnification obligations, expected exchange rates; expected taxes and royalties; the likelihood or timing of the receipt of necessary regulatory and governmental approvals; costs of production and production and productivity levels; estimated future capital expenditures and cash flows; the continuing availability of water and power resources for operations; the accuracy of the interpretation and assumptions and the method or methods used in calculating reserve and resource estimates (including with respect to size, grade and recoverability); the accuracy of the information included or implied in the various published technical reports; the geological, operational and price assumptions on which these technical reports are based; conditions in the financial markets; the ability to attract and retain skilled staff; the ability to procure equipment and operating supplies and that there are no material unanticipated variations in the cost of energy or supplies; the ability to secure contracts for the sale of the Company’s products (metals concentrates); the execution and outcome of current or future exploration activities; the ability to obtain adequate financing for planned activities and to complete further exploration programs; the possibility of project delays and cost overruns, or unanticipated excessive operating cost and expenses, the Company’s ability to maintain adequate internal control over financial reporting, and disclosure controls and procedures; the ability of contractors to perform their contractual obligations; and operations not being disrupted by issues such as mechanical failures, labour disturbances, illegal occupations or mining, seismic events, and adverse weather conditions.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, changes in commodity prices; changes in foreign currency exchange rates; acts of foreign governments; political risk; labour or social unrest; uncertainties related to title to the Company’s mineral properties and the surface rights thereon, including the Company’s ability to acquire, or economically acquire, the surface rights to certain of the Company’s exploration and development projects; unanticipated operational difficulties due to adverse weather conditions, failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters; failure of counterparties to perform their contractual obligations; uncertainty of Mineral Resource estimates; deterioration of general economic conditions; the Company’s ability to successfully integrate the acquisition of Beadell; the Company’s ability to operate Tucano as anticipated; and the Company’s ability to appropriately capitalize and finance Tucano.

Readers are advised to carefully review and consider the risk factors identified in this AIF under the heading “Risk Factors” for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Readers are further cautioned that the foregoing list of assumptions and risk factors is not exhaustive and it is recommended that prospective investors consult the more complete discussion of the Company’s business, financial condition and prospects that is included in this AIF.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 5

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this AIF. The Company will update forward-looking statements and information if and when, and to the extent, required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.

1.D. FINANCIAL INFORMATION

The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). IFRS differs in some respects from US GAAP, and thus the Company’s financial statements may not be comparable to financial statements of US companies.

The Company’s financial statements are presented in United States dollars (the reporting and functional currency). Financial, share price and operating information presented in this AIF is presented in US dollars unless otherwise noted.

1.E. TECHNICAL INFORMATION

The technical information in this AIF relating to the Company’s mineral projects has been reviewed and approved by Robert Brown, P. Eng., a “Qualified Person” under National Instrument 43-101.

1.F. CANADIAN MINERAL PROPERTY STANDARDS AND RESERVE/ RESOURCE ESTIMATES

As a Canadian issuer, the Company is required to comply with reporting standards in Canada that require that it makes disclosure regarding our mineral properties, including any estimates of Mineral Reserves and Mineral Resources, in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this AIF have been prepared in accordance with NI 43-101.

This AIF uses certain technical terms presented below defined in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves (the “CIM Definition Standards”) adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) on May 10, 2014 (“CIM 2014”), as required by NI 43-101. The following definitions are reproduced from CIM 2014:

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 6

Feasibility Study	A comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Indicated Mineral Resource	That part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.  Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.  An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.
Inferred Mineral Resource	That part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and may not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
Measured Mineral Resource	That part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.  A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource.  It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve	The economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of modifying factors.  Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.  The reference point at which Mineral Reserves are defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported.  The public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or Feasibility Study.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 7

Mineral Resource	A concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
Modifying Factors	Considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
Pre-Feasibility Study	A comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined.  It includes a financial analysis based on reasonable assumptions on the modifying factors and the evaluation of any other relevant factors which are sufficient for a Qualified Person, acting reasonably, to determine if all or part of the mineral resource may be converted to a mineral reserve at the time of reporting. A Pre-Feasibility Study is at a lower confidence level than a Feasibility Study.
Probable Mineral Reserve	The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the modifying factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.
Proven Mineral Reserve	The economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the modifying factors.

This AIF also uses the term “preliminary economic assessment”, which is defined in NI 43-101 to mean a study that includes an economic analysis of the potential viability of Mineral Resources, but that does not meet the definition of either a Pre-Feasibility Study or a Feasibility Study, as such terms are defined above.

1.G. CAUTIONARY NOTES TO U.S. INVESTORS REGARDING RESOURCE AND RESERVE ESTIMATES

The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Exchange Act. These amendments were effective February 25, 2019 (the “SEC Modernization Rules”). The SEC Modernization Rules replaced the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7 (“Guide 7”), which have been rescinded.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 8

The SEC Modernization Rules include the adoption of terms describing Mineral Reserves and Mineral Resources that are “substantially similar” to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, SEC now recognizes estimates of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources. In addition, the SEC has amended its definitions of Proven Mineral Reserves and Probable Mineral Reserves to be “substantially similar” to the corresponding CIM Definitions.

United States investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any Mineral Reserves or Mineral Resources that the Company may report as Proven Mineral Reserves, Probable Mineral Reserves, Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

United States investors are also cautioned that while the SEC will now recognize Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources, investors should not to assume that any part or all of the mineralization in these categories will ever be converted into a higher category of Mineral Resources or into Mineral Reserves. Mineralization described using these terms has a greater amount of uncertainty as to their existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any Measured Mineral Resources, Indicated Mineral Resources, or Inferred Mineral Resources that the Company reports are or will be economically or legally mineable.

Further, Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the Inferred Mineral Resources exist. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

For the above reasons, information contained in this AIF containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

1.H. GLOSSARY OF TERMS AND UNITS OF MEASURE

The following glossary, which is not exhaustive, should be used only as an adjunct to a thorough reading of the entire document of which it forms a part.

AAS	Atomic absorption spectroscopy.
adit	A horizontal or close-to-horizontal tunnel, man-made for mining purposes.
AISC	All in sustaining cost, a widely reported non-GAAP measure in the mining industry.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 9

Ag	Silver.
Ag eq oz	Silver equivalent ounces, reflecting the equivalent values of silver and all other products produced by the Company, relative to the prevailing silver price.
andesite	A fine-grained brown, green or greyish intermediate volcanic rock.
Au	Gold.
breccia	A course-grained rock, composed of angular, broken rock fragments held together by a mineral cement or a fine-grained matrix.
cash cost	Cash cost per payable silver ounce, a widely reported non-GAAP measure in the silver industry.
cfm	Cubic feet per minute.
CIM	Canadian Institute of Mining, Metallurgy and Petroleum.
CIM 2014	Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM on May 10, 2014.
COG	Cut-off grade.
CONAGUA	Comisión Nacional del Agua, or National Water Commission, in Mexico responsible for managing and preserving national waters and their inherent good in order to achieve sustainable use.
Cu	Copper.
cut and fill	A mining method which removes mineralized material in horizontal slices and the remaining void is filled with waste rock before proceeding to mine the next slice of mineralized material.
EIA	Environmental Impact Assessment.
eq.	Equivalent values or quantities of products, expressed relative to the prevailing silver and co-product prices.
epithermal	Hydrothermal deposits formed at low temperature and pressure.
felsic	An igneous rock having abundant light-coloured materials.
GDLR Project	The advanced stage Guadalupe de Los Reyes gold and silver project located in the Sierra Madre Mountains in Sinaloa State, Mexico.
g/t	Grams per metric tonne.
gpm	Gallons per minute.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 10

hectare, or ha	A metric unit of land measure equal to 10,000 square metres or 2.471 acres.
hydrothermal	Relating to hot fluids circulating in the earth's crust.
IFRS	International Financial Reporting Standards as issued by the International Accounting Standards Board and interpretations of the International Financial Reporting Interpretations Committee, collectively.
JORC	Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.
kriging	An advanced geostatistical procedure that generates an estimated surface from a scattered set of points with z-values.
LHD	Load-haul-dump loader.
LOM	Life of Mine.
masl	Metres above sea level.
mineral claim	The portion of mining ground held under law by a claimant.
mineralization	Implication that the rocks contain metallic minerals and that these could be related to ore.
M&I	Measured and Indicated.
NSR	Net smelter return.
OEFA	The Environmental Evaluation and Oversight Agency, in Peru.
ore	That part of a mineral deposit which could be economically and legally extracted.
oz	Troy ounces.
Pb	Lead.
PROFEPA	Procuraduría Federal de Protección al Ambiente, or Federal Agency of Environmental Protection, creates and enforces the Federal environmental laws of Mexico, with the aim of sustainable development.  It has no relationship with the SEMARNAT, and maintains its own technical and operational autonomy.
psi	Pounds per square inch.
QA/QC	Quality Assurance/Quality Control.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 11

quartz	A common rock forming mineral consisting of silicon and oxygen.
R$	Brazilian Real.
resuing	A method of stoping wherein mineralized material is extracted separately from the waste rock on one side of the vein.  This method is employed on narrow veins, and yields cleaner mineralized material than when waste and mineralized material are broken together.
rhyolite	A fine-grained volcanic (extrusive) rock of granitic composition.
SEC	United States Securities and Exchange Commission.
SEDAR	System for Electronic Document Analysis and Retrieval, a mandatory document filing and retrieval system for Canadian public companies.
SEMARNAT	Secretaría de Medio Ambiente y Recursos Naturales, or Ministry of Environment and Natural Resources, the Mexican federal agency responsible for environmental protection, including permitting of surface work and some mining programs.
stockwork	A metalliferous deposit characterized by the impregnation of the mass of rock with many small veins or nests irregularly grouped.
stoping	The extraction of mineralized material or other minerals by creating underground openings through the application of drill and blast techniques.
TSF	Tailings storage facility.
tonne	A metric tonne, equal to 1,000 kilograms and approximately 2,205 lbs.
tpd	Metric tonnes per day.
t/m³	Metric tonnes per cubic metre.
US GAAP	United States generally accepted accounting principles.
vein	A zone or belt of mineralized rock lying within boundaries clearly distinguished from neighbouring rock.  A mineralized zone has, more or less, a regular development in length, width and depth to give it a tabular form and is commonly inclined at a considerable angle to the horizontal.  The term "lode" is commonly used synonymously for vein.
Zn	Zinc.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 12

2. CORPORATE STRUCTURE

2.A. NAME, ADDRESS AND INCORPORATION

Great Panther Mining Limited was originally incorporated under the Company Act (British Columbia) in 1965 under the name Lodestar Mines Ltd. On June 18, 1980, the Company’s common shares were listed on the TSX Venture Exchange. On November 14, 2006, the Company’s common shares began trading on the Toronto Stock Exchange (“TSX”) under the symbol GPR. On February 8, 2011, the Company’s common shares were listed on the NYSE American under the trading symbol GPL, while the Company retained its listing on the TSX in Canada.

Great Panther’s principal and registered offices are located at 1330 – 200 Granville Street, Vancouver, British Columbia, V6C 1S4, Canada. The Company’s telephone number is 604-608-1766, its facsimile number is 604-608-1768, and the Company’s website can be found at www.greatpanther.com.

2.B. INTERCORPORATE RELATIONSHIPS

The following companies are the subsidiaries of the Company as of March 5, 2019, each of which is 100% beneficially owned, directly or indirectly, by the Company, with the exception of Marina Norte Empreendimentos de Mineração S.A., which is 70% owned.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 13

3. GENERAL DEVELOPMENT OF THE BUSINESS

3.A. GENERAL

Great Panther Mining Limited is a precious metals mining and exploration company listed on the TSX trading under the symbol GPR, and on the NYSE American trading under the symbol GPL.

The Company’s acquisition of Beadell Resources Limited (“Beadell”) on March 5, 2019 adds the open pit Tucano Gold Mine in Brazil and creates a new emerging and growth oriented precious metals producer focused on the Americas. The Company has a diverse portfolio of producing mines, and advanced stage project and exploration assets across three leading mining jurisdictions in Latin America. These include:

(i) the Tucano Gold Mine and associated 2,500 square kilometre land package in Brazil;

(ii) the Guanajuato Mine Complex in Mexico;

(iii) the Topia Mine in Mexico;

(iv) the Coricancha Mine in Peru (“Coricancha”);

(v) the El Horcon, Santa Rosa, and Plomo exploration properties in Mexico; and

(vi) the Tartaruga Gold Exploration Project in Brazil.

The Company’s activities for 2019 will be focused on the mining of precious metals from its two wholly-owned operating mines in Mexico: the Guanajuato Mine Complex (“GMC”) and the Topia Mine (“Topia”), and with the acquisition of Beadell, optimization of Tucano, including enhancement of mining and processing operations. The Company also expects to make a decision on whether or not to restart the Coricancha Mine in Peru by the end of March 2019.

The Tucano Gold Mine is an open pit gold mine located in Amapá State in northern Brazil approximately 200 kilometres from Macapá, the state capital. It is expected to produce 145,000 to 155,000 ounces of gold in calendar 2019 with ore processed through a primary crusher, SAG mill, ball mill and CIL infrastructure, capable of treating both oxide and sulphide ore. Current combined Proven and Probable Mineral Reserves at Tucano are approximately 1.3 million ounces of gold, as detailed below in Section 5.C.2 under “Tucano Technical Report – Reserves” and after accounting for 2018 production. Tucano sits in an underexplored greenstone belt and there is potential to increase reserve quantity and quality both at surface and underground.

The GMC, which comprises the Company’s Guanajuato Mine, the San Ignacio Mine (“San Ignacio”), and the Cata processing plant, produces silver and gold concentrate and is located in central Mexico, approximately 380 kilometres north-west of Mexico City, and approximately 30 kilometres from the Guanajuato International Airport. The Topia Mine is located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico and produces metallic concentrates containing silver, gold, lead and zinc at its own processing facility.

The method of production at Topia and the GMC consists of conventional mining incorporating cut and fill and resue methods. Extracted mineralized material is trucked to on-site conventional processing plants which consist of zinc and lead-silver flotation circuits at the Topia Mine, and a pyrite-silver-gold flotation circuit at the GMC.

On June 30, 2017, the Company acquired a 100% interest in Coricancha by acquiring all the common shares of Nyrstar Coricancha SA. Coricancha is a gold-silver-copper-lead-zinc mine, located in the Peruvian province of Huarochirí, approximately 90 kilometres east of Lima, and has been on care and maintenance since August 2013. In May 2018, the Company completed a preliminary economic assessment to evaluate the restart of Coricancha, and is currently in the process of completing a bulk sample program to further test the assumptions in the preliminary economic assessment (the “Bulk Sample Program”). The Company expects to complete the Bulk Sample Program in the first quarter of 2019. Following a full evaluation of the results of the Bulk Sample Program, the Company expects to be able to make a decision on whether to commence the restart of Coricancha. The Company does not currently plan to complete a feasibility study in connection with any production decision due to (i) the existing processing plant facility, (ii) the ability to continue on to development and production based on low initial capital costs, and (iii) the Company’s knowledge of the mine and resource base.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 14

The Company’s Tucano exploration properties feature multiple near mine infill and step out targets around the existing mining corridor at Tucano, followed by regional targets across the 2,500 square kilometre land package in which Tucano is located, all wholly owned. Additional properties include: El Horcón, Santa Rosa and Plomo in Mexico; and Argosy in Canada. El Horcón is located 100 kilometres by road northwest of Guanajuato city, Santa Rosa is located approximately 15 kilometres northeast of Guanajuato city, and the Plomo property is located in the state of Sonora, Mexico. The Argosy property is in the Red Lake Mining District in northwestern Ontario, Canada. The Company has not undertaken any significant exploration programs on El Horcón, Santa Rosa, Plomo and Argosy in the last three years, and none of these properties is considered material.

The GMC, Topia, El Horcón and Santa Rosa are held by MMR, a wholly-owned subsidiary acquired in February 2004. In 2005, the Company incorporated MDU and MVS which are responsible for the day-to-day affairs and operations of Topia and the GMC, respectively, through service agreements with MMR.

Argosy is held by Cangold, and Plomo is held by Coboro.

3.B. THREE-YEAR HISTORY

3.B.1 Year ended December 31, 2018

Overall metal production for 2018 was 4,170,966 Ag eq oz, representing an increase of 5% over the prior year. The increase in production was primarily due to the current year revision in the Ag eq oz conversion ratios due to higher gold to silver price ratio, and higher silver and lead recoveries at Topia. These factors were partly offset by lower silver and gold grades at both the GMC and Topia, and lower gold recovery at Topia.

The Company’s success rests upon the safety and wellbeing of its workforce. Safety is one of the Company’s core values and is defined as “our priority, before we act, in every job, every day”. Statistics tracking safety performance are collected from each operation and reported monthly to the management team and also reviewed with the Company’s Safety, Health and Environmental Committee of the board of directors on at least a quarterly basis. Safety targets are set each year and are a factor used in determining incentive compensation. Safety incidents are thoroughly investigated, and findings reports are shared across operations to assist in the prevention of similar incidents. There were no fatalities at any of the Company’s operations during 2018.

A total of 4,755 metres of development were completed at the GMC during 2018. At Topia, underground development totaled 5,237 metres, with the majority carried out at the Argentina, 15-22, San Miguel, El Rosario, La Prieta and Recompensa mines.

The Company completed 11,086 metres of exploration drilling at the GMC during 2018, a decrease as compared to 22,207 metres in 2017. The Company undertakes ongoing exploration of the GMC with the objective of replacing mined resources and expanding the Mineral Resource base. On January 25, 2019, the Company provided an update to the Mineral Resource at the GMC which reported an increase in Measured and Indicated Mineral Resources of 91%. During 2018, exploration at San Ignacio consisted of both surface and underground drilling which totaled 7,085 metres.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 15

Late in the third quarter of 2018, in order to lower costs and mitigate the impact of lower metal prices, the Company undertook a restructuring at the GMC to reduce mining from the Guanajuato Mine and to increase output from the San Ignacio Mine. In addition, the Company undertook other cost reduction measures and started to see the impact of these measures in the fourth quarter of 2018. Further restructuring measures were taken at the start of 2019 which included an optimization strategy under which the entire production for the GMC will be sourced from the lower cost San Ignacio Mine, enabling a focused exploration program for the Guanajuato Mine aimed at growing higher margin resources.

The Company did not perform surface exploration drilling at Topia during 2018, while 2,484 metres of drilling were completed in 2017. On January 29, 2019, the Company reported an update to the Mineral Resource at Topia which increased the Measured and Indicated Mineral Resources by 28% to 14,770,000 Ag eq oz compared to the previous estimate reported in 2014.

In December 2017, the Company announced that SEMARNAT, the Mexican environmental authority, had granted all permits for the construction and operation of Phase II of the Topia TSF. Phase II is not a conventional tailings dam, but instead a dry stack operation using filter cake. The deposition includes stacking and compaction of the material. While detailed design and engineering of the under drainage of the lower bench of Phase II is underway, the Company is utilizing the upper bench of Phase II for the deposition of dry stack tailings and expects to continue to do so throughout 2019.

Phase I of the Topia TSF was closed and contoured during 2018. Based upon recommendations from an independent consulting firm, three additional instrumentation stations in the footprint of the Topia TSF will be put in place in 2019 for the purposes of continuous monitoring. The independent consulting firm will continue to perform an annual review of Phase I, as well as conduct geotechnical reviews and provide design considerations for Phase II.

On May 31, 2018, the Company reported the results of a positive PEA for Coricancha and filed a full PEA technical report on SEDAR on July 13, 2018. Following this, the Company initiated a 6,000 tonne trial stope and bulk sample program to further de-risk the project. The objective of the Bulk Sample Program is to confirm expectations regarding throughput, grades, and recoveries. Following the completion of the BSP, the Company expects to be able to make a decision by the end of March 2019 on whether to commence the restart of Coricancha.

On September 23, 2018, the Company announced that it had entered into a scheme implementation deed (the "Implementation Deed") with Beadell, to acquire all of the issued ordinary shares of Beadell by means of the Scheme under the Australian Corporations Act 2001. (see "Significant Acquisitions" below).

On February 22, 2018, Great Panther regretfully announced the passing away of Mr. Kenneth W. Major, who served as Director of the Company since March 2011, including distinguished service as Chair of the Safety, Health and Environment Committee, in addition to service on other committees of the board of directors. In Ken’s honour, the Company has established the Kenneth W. Major Safety Award to recognize Great Panther employees annually who exemplify Ken’s value of safety in the workplace.

On May 7, 2018, the Company announced that Mr. Ali Soltani would be stepping down from his role as Chief Operating Officer (“COO”) of the Company effective May 31, 2018. Mr. Soltani continued to provide services to the Company on a part-time basis as Senior Technical Advisor for several months thereafter.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 16

3.B.2 Year ended December 31, 2017

Overall metal production for 2017 was 3,978,731 Ag eq oz, a 2% increase over the prior year despite a slight decrease in tonnes milled. This was due to an increase in production from the higher grade Topia Mine, which benefited from higher throughput and increase in ore grades.

There were no fatalities at any of the Company’s operations during 2017. The Company introduced and implemented additional safety measures during 2017, including the SafeStart program, with the objective of further educating workers and their families about the importance of operating a safe work environment.

A total of 12,002 metres of development were completed at the GMC during 2017. At Topia, underground development totaled 5,167 metres, with the majority carried out at the Argentina, 15-22, San Miguel and Recompensa mines.

The Company completed 22,207 metres of exploration drilling at the GMC during 2017, a significant increase over 15,685 metres in 2016. On January 25, 2018, the Company provided an update to the Mineral Resource at the GMC which reported an increase in Measured and Indicated Mineral Resources of 91%. During 2017, exploration at San Ignacio consisted of both surface and underground drilling which totaled 17,885 metres. This drilling resulted in the extension and continued delineation of the Melladito and Nombre de Dios zones at the San Ignacio Mine, and a significant increase in Measured and Indicated Mineral Resources. Underground drilling at the Guanajuato Mine totaled 4,322 metres, and was focused on the Cata, Los Pozos, Guanajuatito, San Cayetano, Santa Margarita and Valenciana mining areas.

The Company completed 2,485 metres of surface exploration drilling at Topia during 2017, while no such drilling was completed in 2016.

In June 2017, the Company successfully completed the commissioning phase of the refurbished processing plant at Topia and the plant was operating at planned capacity. Milling operations had been suspended from early December 2016 until early April 2017 to facilitate the construction of a tailings filtration plant, and completion of plant upgrades. In December 2017, SEMARNAT granted the Company all permits for the construction and operation of the new Phase II TSF at its Topia Mine. The Company was utilizing the existing Phase I TSF during the construction of Phase II.

On June 30, 2017, the Company completed the acquisition of Coricancha from subsidiaries of Nyrstar NV (see "Significant Acquisitions" below).

On August 14, 2017, the Company announced the results of the exploration drilling program conducted at Coricancha which focussed on three main veins – Wellington, Constancia and Colquipallana, in addition to a new exploration target, the Animas vein.

On August 16, 2017, James Bannantine was appointed President and Chief Executive Officer and Director of the Company, succeeding Robert Archer. Mr. Archer remains on the board of directors.

On December 20, 2017, the Company completed an updated Mineral Resource Estimate for Coricancha. The Measured and Indicated tonnes and grades in the updated Mineral Resource Estimate compared well with those from the historical resource estimate of 2012.

The Company compiled supplemental information requested by CONAGUA during its inspections conducted during 2016 and submitted it in December 2017.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 17

3.B.3 Year ended December 31, 2016

Overall metal production for 2016 was 3,884,960 Ag eq oz, representing a decrease of 7% over the prior year. The decrease in production reflected 15% lower throughput at Topia due to three temporary suspensions of operations to facilitate a plant upgrade, as well as lower ore grades and recoveries at the GMC.

A total of 9,540 metres of development were completed at the GMC during 2016, with the majority focused on the San Ignacio Mine. At Topia, mine development totaled 7,118 metres and was focused on the Argentina, 15-22, La Prieta and El Rosario mines.

The Company’s drill program during 2016 totaled 15,685 metres for the GMC compared to 17,680 metres in 2015. Drilling at the Guanajuato Mine totaled 7,200 metres and was focused on the Guanajuatito and Valenciana mines. At San Ignacio, total drilling amounted to 8,458 metres for the year.

There was no exploration drilling conducted at Topia during 2016 as the mine had sufficient Mineral Resources to support mining for several years at current production levels.

The Company experienced one fatality at its Topia Mine and two fatalities at the GMC in 2016. The Company considers the health and safety of its workers, and others in the communities in which it operates, to be a top priority. The Company completed extensive investigations into each event and routinely undertook additional safety training and updates and made improvements to safety procedures and practices to minimize the risk of injuries and improve levels of safety.

On January 14, 2016, the Company reported a theft of explosives from one of the mines at the GMC. The Company voluntarily suspended the use of all explosives material at the GMC to facilitate ongoing investigations by regulatory authorities, and to enhance security. On February 16, 2016, the regulatory authorities concluded their formal investigation. Operations at the GMC were intermittently halted over the investigation period and fully resumed on February 16, 2016.

In February 2016, CONAGUA required that the Company make formal applications for permits associated with the occupation and construction of the TSF at the GMC. After the Company filed the applications, CONAGUA carried out an inspection of the TSF and requested further technical information.

On February 24, 2016, the Company terminated an option to purchase the GDLR Project in Sinaloa, Mexico, after conducting an evaluation of the project, which included a surface diamond drill program.

On April 21, 2016, the Company entered into an At-the-Market Offering (the “ATM Offering”) agreement under which the Company had the discretion to sell common shares up to a maximum in gross sales proceeds of $10.0 million until December 31, 2016. The Company issued 3,498,627 common shares under the ATM Offering for aggregate gross proceeds of $5.7 million.

On May 11, 2016, the Company elected to terminate an option agreement to acquire a 100% interest in Coricancha; however, it continued with the evaluation of the project and subsequently acquired Coricancha in 2017.

On July 12, 2016, the Company closed an equity bought deal offering that was announced on July 6, 2016. Upon closing, the Company sold 18,687,500 Units at a price of $1.60 per Unit for gross proceeds of $29.9 million. Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitled the holder to purchase one share at the exercise price of $2.25 per share for a period of 18 months after the closing of the offering. The Company paid a cash commission to the underwriters equal to 6% of the gross proceeds of the offering. The intended use of net proceeds from this offering, along with the net proceeds from the aforementioned ATM Offering, was to fund operating, development and exploration expenditures at the Company’s mining operations and projects, for possible future acquisitions, and for general corporate and working capital purposes.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 18

In early December 2016, the Company temporarily halted processing at the Topia Mine in order to facilitate certain plant upgrades and a transition to a new TSF under construction. Mine operations continued during the plant shutdown and all mineralized material was stockpiled to be processed upon resumption of processing activities towards the end of the first quarter of 2017. Further details regarding the new TSF is included in the Topia Development section.

3.C. SIGNIFICANT ACQUISITIONS

On September 23, 2018, the Company announced that it had entered into an Implementation Deed with Beadell to acquire all of the issued ordinary shares of Beadell by means the Scheme under the Australian Corporations Act 2001.

On February 11, 2019, the Scheme was approved by the Company’s shareholders (96% in favour) and on February 12, 2019, the Scheme was also approved by 97% of the number of votes cast, and 75% of the number of Beadell shareholders present and voting, at the meeting of Beadell shareholders. On March 5, 2019, the acquisition of Beadell was completed.

Pursuant to the Implementation Deed and Scheme:

• Beadell shareholders received 0.0619 of the Company’s common shares for each Beadell share held (the “Exchange Ratio”). Upon completion of the Scheme, Beadell shareholders received approximately 103.6 million of the Company’s common shares equal to approximately 38% of the Company’s pro-forma outstanding common shares.

• Under concurrent arrangements, each Beadell warrant holder received a number of Company share purchase warrants equal to the number of their Beadell warrants multiplied by the Exchange Ratio at a price adjusted in accordance with the Exchange Ratio, and otherwise on the same terms and conditions as the original warrant. The Company issued the following pursuant to these arrangements on completion of the Scheme: (a) warrants to purchase 3,428,032 Great Panther Shares with an exercise price of $1.317 and an expiry date of May 17, 2022; and (b) warrants to purchase 6,321,695 Great Panther Shares with an exercise price of $1.317 and an expiry date of June 27, 2022.

Some of the key closing conditions that were completed or satisfied included:

• The modification to MACA Limited’s (“MACA”) outstanding A$54.7 million loan due from Beadell on terms satisfactory to Great Panther. An agreement to modify the terms was reached between Great Panther, Beadell and MACA on November 19, 2018 (the “MACA Agreement”). Under the MACA Agreement, MACA agreed to consent to the change of control, keep the loan in place with a term to June 2022, and other amendments with effect from the date of completion of the Scheme. An aggregate of A$16.5 million is required to be paid to MACA during 2019, and an aggregate of A$18.0 million is required to be paid to MACA during 2020. The Company has agreed to convert up to A$15.0 million of the outstanding balance into common shares at a price equal to 95% of the 20 trading day volume weighted average price of the Company’s shares on the NYSE American. MACA is limited to converting A$5.0 million in any quarter. Beadell remains liable for the full principal amount of the loan, however the Company has only guaranteed A$6.0 million in payments.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 19

• Certain arrangements relating to Beadell's outstanding $10.0 million convertible debentures (the “Convertible Debentures”) governed by a debenture indenture under which, upon the change of control (“Change of Control”), the Company has made an offer (the “Change of Control Purchase Offer”) to purchase all convertible debentures at a price equal to 105% of the principal amount, plus accrued and unpaid interest. The Company has entered into an amended and restated supplemental debenture indenture pursuant to which the Company will expressly assume the obligations of Beadell and the holders of Convertible Debentures will be entitled to receive Great Panther Shares on the conversion thereof, to the extent that any Convertible Debentures remain outstanding after the Change of Control Purchase Offer.

If not less than 90% of the Beadell Convertible Debentures are tendered to the Change of Control Purchase Offer, then Great Panther will have the right, but not the obligation, to redeem the remaining outstanding Beadell Convertible Debentures at the Change of Control Offer Price.

If fewer than 90% of the Beadell Convertible Debentures are tendered to the Change of Control Purchase Offer, then such outstanding debentures shall continue to represent debt obligations of Great Panther in accordance with the terms thereof.

• Consent to the change of control on behalf of Beadell's senior secured lenders in Brazil (Santander and ITAU), which was obtained.

4. DESCRIPTION OF THE BUSINESS

4.A. PRINCIPAL MARKETS

In 2018, Great Panther produced metallic concentrates containing silver, gold, lead and zinc. These concentrates are then sold to metal traders or directly to smelters and refiners which extract the metals from the concentrates (see “Product Marketing, Sales and Distribution”). In 2018, silver accounted for 46% of the Company’s revenues and gold accounted for 40%. The remaining 14% of the Company’s revenues are from the production of lead and zinc at Topia.

Silver and gold are precious metals traded as commodities primarily on the London Bullion Market Association (the “LBMA”) and Comex in New York (the “CME”). The LBMA is an international trade association, representing the London market for gold and silver bullion which has a global client base. This includes the majority of the gold-holding central banks, private sector investors, mining companies, producers, refiners and fabricators. The on-going work of the LBMA covers a number of areas, among them refining standards, trading documentation and the development of good trading practices. The maintenance of the “Good Delivery List”, including the accreditation of new refiners and the regular retesting of listed refiners, is the most important core activity of the LBMA.

The LBMA silver price auction is operated by CME and administered by Thomson Reuters. The price is set daily in US dollars per ounce at 12:00 noon London time and is displayed on the LBMA's website with a 15-minute delay. The LBMA gold price auction takes place twice daily by ICE Benchmark Administration at 10:30 and 15:00 London time with the price set in US dollars per ounce. The price is displayed on the LBMA'S website with a 30-minute delay. Reference prices for both silver and gold are also available in British Pounds and in Euros.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 20

The silver and gold business is cyclical as smelting and refining charges rise and fall depending upon the demand for, and supply of, silver-gold concentrates in the market. In addition, the market prices of silver and gold have historically fluctuated widely, and are affected by numerous global factors beyond the control of the Company and the mining industry in general. A decline in such market prices may have an adverse effect on revenues from the sale of silver and gold.

In 2017, total physical silver demand accounted for 1,017.6 million ounces per the Silver Institute, World Silver Survey 2018, and comprised the following end market categories: industrial use (59%), coins and bars (15%), silver jewelry (21%) and silverware (6%). Approximately 41% of the industrial use is for electrical and electronic components and 16% is accounted for by use in the manufacturing of photovoltaics (solar cells). Silver has a number of key and, in some cases, unique properties such as durability, malleability, ductility, reflectivity, and electrical conductivity. It also has antibacterial properties, and all these properties make it valuable in numerous industrial applications. Applications include: circuit boards, electrical wiring, superconductors, brazing and soldering, mirror and window coatings, electroplating, chemical catalysts, pharmaceuticals, filtration systems, solar panels, batteries, televisions, household appliances, clothing and automobile components. The unique properties of silver also make it difficult to substitute the element in its industrial applications.

Gold demand comprises four primary categories: jewelry, investment, central banks and other financial institutions; and technology. Jewelry has always been a dominant source of demand for gold and accounts for approximately half of world gold demand. Investment in gold by institutional and private investors accounts for around one third of global demand and is made up of direct ownership of bars and coins, or indirect ownership via Exchange-Traded Funds and similar products. Gold is also one of the few assets that is universally permitted by the investment guidelines of the world’s central banks due, in part, to the gold market being deep and liquid. Around nine per cent of the world demand for gold is for technical applications. The electronics industry accounts for the majority of this, where gold’s conductivity and resistance to corrosion make it the material of choice for manufacturers of high-specification components. In addition, the metal’s excellent biocompatibility means that it continues to be used in dentistry. Beyond electronics and dentistry, gold is used across a variety of high-technology industries, in complex and difficult environments, including the space industry and in fuel cells. Gold’s catalytic properties are also beginning to create demand both within the automotive sector, as the metal has now been proven to be a commercially viable alternative to other materials in catalytic converters, and within the chemical industry.

4.B. PRODUCT MARKETING, SALES AND DISTRIBUTION

The principal customers for the Company’s metallic concentrates are smelters in Mexico, Asia and Europe, and international traders. For the year ended December 31, 2018, six customers accounted for all of the Company’s revenues.

There is a global market for metallic concentrates and the Company continues to identify and evaluate new buyers for its concentrates through an active marketing process. Great Panther’s head office in Vancouver provides sales and marketing services to its Mexican operations in respect of the sale of concentrates produced by its operations. This generally involves an annual competitive tendering process and marketing and relationship development throughout the year. The tendering process culminates in the Company’s Mexican subsidiary entering into contracts with metal traders or smelting and refining companies for generally a one-year term. The tendering process enables the Company to review and renegotiate the terms of its contracts annually to ensure that it receives the most competitive pricing and terms possible. The Company also seeks not to be completely dependent on any single smelter, refiner or trader for the purchase of its concentrates at any given time.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 21

The smelters and international traders pay the Company for metal contained in the Company’s concentrates, less charges associated with refining and smelting. Revenues reported by the Company are net of these charges. The pricing for the contained metals in the concentrate is typically the average of all the daily quoted market prices within a specific month or other agreed period of time.

Starting in 2018, as a result of changes in contract terms, the Company delivers its concentrates by truck to customers' warehouses. As concentrates can vary in terms of grade and quality from shipment to shipment, the sales are subject to a final settlement process to adjust for any variances. After the physical transfer of the metal concentrate, the Company has the right to request advance payments based on the provisional value of shipments calculated at spot prices for the contained metals. Such advances are typically 90% to 95% of the provisional value, and are typically payable from 8 to 75 days subsequent to delivery, depending on the specific contract. A final payment or adjustment is made on the date of final settlement, once all information regarding concentrate content is known. The credit period for sales can range from two to four months depending on timing of final settlements.

Revenue Figures

	Year ended December 31, 2018			Year ended December 31, 2017
(in thousands)	GMC	Topia	Total	GMC	Topia	Total
Silver revenue	$ 17,271	$ 10,944	$ 28,215	$ 24,129	$ 9,016	$ 33,145
Gold revenue	24,020	985	25,005	27,432	755	28,187
Lead revenue	-	3,904	3,904	-	2,741	2,741
Zinc revenue	-	4,497	4,497	-	3,853	3,853
Smelting and refining charges	(1,656)	(531)	(2,187)	(2,195)	(1,985)	(4,180)
Total revenue	$ 39,635	$ 19,799	$ 59,434	$ 49,366	$ 14,380	$ 63,746

4.C. SEASONALITY

Even though revenue will vary based on the quantity of metal production, metal prices and terms of sales agreements, the Company’s business is not considered to be seasonal.

The climate in Mexico allows exploration, mining and milling operations to be carried out year-round. Therefore, revenue and cost of sales generally do not exhibit variations due to seasonality. The exceptions are periods of excessive drought which may limit or defer processing of mineralized material and/or concentrate. The dry season in Mexico generally extends from October through April. The Company has not experienced a suspension of mining and processing activities due to drought in any of the last three fiscal years.

The climate in Peru also allows mining activities to be carried out year-round. There is a rainy season from January to March that has in the past caused flooding and disruptions to operations in the area where Coricancha is located.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 22

4.D. SPECIALIZED SKILL AND KNOWLEDGE

The Company’s business requires specialized skills and knowledge in the areas of geology, mining, metallurgy, social and environmental studies, permitting, claim management and finance. The Company has a number of employees with extensive experience in mining, engineering, finance, geology, exploration and development, including but not limited to, James Bannantine, President & Chief Executive Officer and director; Jim Zadra, Chief Financial Officer & Corporate Secretary; Brian Peer, Vice President Operations Mexico & Peru, Luis Pablo Diaz, Vice President Operations Brazil, and Robert Brown, Qualified Person and Acting Vice President Exploration.

4.E. COMPETITIVE CONDITIONS

The Company’s business is to mine and process mineralized material and sell precious metal and base metal concentrates. Prices for its products are determined by world markets over which it has no influence or control. The Company also competes with other mining companies, some of which have greater financial resources and technical facilities, for the acquisition of mineral interests, as well as for the recruitment and retention of qualified employees.

4.F. DOING BUSINESS IN MEXICO AND PERU

4.F.1 Mining in Mexico

The mining industry in Mexico is controlled by the Secretaría de Economía – Dirección General de Minas which is located in, and administered from, Mexico City. Mining concessions in Mexico may only be obtained by Mexican nationals or Mexican companies incorporated under Mexican laws. The construction of processing plants requires further governmental approval.

In Mexico, surface land rights are distinct from the mining concessions.

The holder of a mining concession is granted the exclusive right to explore and develop a designated area. Mining concessions are granted for 50 years from the date of their registration with the Public Registry of Mining to the concession holder as a matter of law, if all regulations have been complied with. During the final five years of this period, the concession holder may apply for one additional 50-year period, which is automatically granted provided all other concession terms have been complied with. Mining rights in Mexico can be transferred by their private holders with no restrictions or requirements other than to register the transaction with the Public Registry of Mining.

In accordance with the Federal Duties Law, the holder of a mining concession is obligated to pay biannual duties in January and July of each year based upon the number of hectares covered by the concession area.

Concessionaires must perform work each year that must begin within ninety days of the concession being granted. Concessionaires must file proof of the work performed each May. Non-compliance with these requirements is cause for cancellation only after the secretary of economy communicates in writing to the concessionaire of any such default, granting the concessionaire a specified time frame in which to remedy the default.

If a concession holder does not carry out exploration and exploitation activities for two continuous years within the first 11 years of its concession title, it will be required to pay an additional charge equal to 50% of the two-year concession duty. The concession duty increases to 100% for continued inactivity after the 12th year. Payment of the additional concession duty is due 30 days after the end of the two-year period.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 23

In Mexico, there are no limitations on the total amount of mining concessions or on the amount of land that may be held by an individual or a company. Excessive accumulation of concessions is regulated indirectly through the duties levied on the property and the production and exploration requirements as outlined above.

Mexican mining law requires the payment of a discovery premium related to National Mineral Reserves, Concessions in Marine Zones, and Allotments to the Council of Mineral Resources.

Environmental protection regulations in Mexico require permits for mine operations, for operating a processing plant, for the discharge and/or deposition, and for changes to grandfathered projects. There are four government departments that deal with and regulate such affairs.

Mining companies are subject to a special mining duty of 7.5% on profits derived from the sale of minerals, and an extraordinary mining duty of 0.5% on the gross value of sales of gold, silver and platinum.

4.F.2 Mining in Peru

In Peru, the General Mining Law allows mining companies to obtain clear and secure title to mining concessions. Surface land rights are distinct from mining concessions. The government retains ownership of all subsurface land and Mineral Resources, but the titleholder of the concessions retains ownership of extracted Mineral Resources. Peruvian law requires that all operators of mines in Peru have an agreement with the owners of the land surface above the mining rights or to establish an easement upon such surface for mining purposes. Mining concessions allow for both exploration and for exploitation.

Mining rights in Peru can be transferred by their private holders with no restrictions or requirements other than to register the transaction with the Public Mining Register. The sale of mineral products is also unrestricted, so there is no obligation to satisfy the internal market before exporting products.

Recently, Peru enacted a new regime of environmental laws whereby the Ministry of Energy and Mines and the Environmental Ministry have issued regulations mandating environmental standards for the mining industry. Under these standards, new mining development and production requires mining companies to file and obtain approval for an Environmental Impact Assessment, which incorporates technical, environmental and social matters, before being authorized to commence operations.

The Environmental Evaluation and Oversight Agency (“OEFA”) monitors environmental compliance. OEFA has the authority to carry out audits and levy fines on companies if they fail to comply with prescribed environmental standards and permits. The following permits are generally needed for a project: Certificate for the Inexistence of Archaeological Remains ("CIRA"); Environmental Impact Assessment; Mine Closure Plan; Establishment of a Financial Guarantee for Closure; Beneficiation Concession; Mining Transportation Concession; Permanent Power Concession; Water Usage Permits; Easements and Rights-of-way; District and Provincial Municipality Licenses and Construction and Operation Permits.

Companies incorporated in Peru are subject to income tax on their worldwide taxable income, while foreign companies that are located in Peru and non-resident entities are taxed on income from Peruvian sources only. The corporate income tax was 27% for 2018 and will decrease to 26% in 2019 and thereafter, as part of a broader initiative to reinvigorate Peru’s economy. In general terms, mining companies in Peru are subject to the general corporate income tax regime. If the taxpayer has elected to sign a Stability Agreement, an additional 2% premium is applied on the regular corporate income tax rate. The Company has not signed a Stability Agreement. Also, 50% of income tax paid by a mine to the Central Government is remitted as “Canon” by the Central Government back to the regional and local authorities of the area where the mine is located.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 24

In Peru, a dividend tax rate of 8.0% is imposed on distributions of profits to non-residents and domiciled individuals by resident companies and by branches, permanent establishments and agencies of foreign companies. The rate will increase to 9.3% in 2019.

Peru has a royalty referred to as the Modified Mining Royalty (“Peruvian Royalty”) that applies to operating income at marginal rates ranging from 1% to 12%, and is payable quarterly. Operating income is defined as revenues from the sale of Mineral Resources, less cost of goods sold, less operating expenses, based on Peruvian statutory reporting regulations, with minor adjustments for interest and exploration expenditures.

Under the Peruvian Royalty regime, an “operating income” to “mining operating revenue” measure (operating profit margin) is calculated each quarter and the royalty rate increases with the increase in operating margin. Although the Peruvian Royalty is based on operating income, a company must pay at least 1% of sales, regardless of its profitability.

In addition, a Special Mining Tax (“SMT”) is a tax imposed in parallel with the Peruvian Royalty. The SMT is applied on operating mining income based on a progressive scale, with marginal rates ranging from 2.0% to 8.4%. The SMT is also payable on a quarterly basis.

4.G. ENVIRONMENTAL PROTECTION

The Company has taken a proactive approach to managing environmental risk. In Mexico, it is participating in a voluntary environmental audit of its GMC and Topia operations. The outcomes of these audits are multi-year environmental programs, working in cooperation with PROFEPA to ensure compliance with regulations governing the protection of the environment in Mexico.

In Peru, the Company is in compliance with the environmental requirements of its mining permit, having relocated the majority of historic tailings facilities to the Chinchan site while it awaits the results of its application for a modified closure plan.

As at December 31, 2018, the Company has a provision of $27 million on its Statement of Financial Position for the estimated present cost of reclamation and remediation expenditures associated with the future closure of its mineral properties, and plant and equipment, at the GMC, Topia and Coricancha. The estimated expenditures are to commence near the end of each mine’s useful life.

For additional discussion of environmental considerations, please refer to sections entitled “Infrastructure, Permitting and Compliance” in sections 5 and 6 of this AIF.

4.H. EMPLOYEES

The following table sets out the Company’s employees at December 31, 2018, 2017 and 2016, by legal entity.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 25

Company	2018	2017	2016
Great Panther Mining Limited	19	21	23
Metálicos de Durango SA de CV	189	182	142
Minera de Villa Seca SA de CV	139	163	160
Great Panther Coricancha SA	84	40	N/A
GP Finance International sàrl	1	1	1
TOTAL	432	407	326

Minera Mexicana El Rosario SA de CV, Coboro Minerales de Mexico SA de CV, Great Panther Silver Peru SAC, Cangold Limited and Great Panther Finance Canada Limited do not have any employees.

4.I. COMMUNITY ENGAGEMENT AND SUSTAINABLE DEVELOPMENT

Great Panther is committed to promoting sustainable development and believes that sharing the value created by the Company's activities contributes to the social and economic development of its host communities. The Company prioritizes social investment initiatives that contribute to improving the quality of life of the communities surrounding its operations, and that continue to make positive impacts beyond its participation.

The Company’s approach to sustainable development is planned to ensure that programs are designed as catalysts for mutual and lasting socio-economic benefits. These initiatives are based on active collaboration with host communities and aimed to contribute to healthy and sustainable societies. Great Panther believes that two-way engagement builds trust and fosters genuine partnerships with local stakeholders, and consequently relies on respectful, open and frequent communication with the members of its neighbouring communities.

Stakeholder engagement and social investment programs implemented by the Company, that include partnerships with local governments and civil society organizations, are focused in three main areas: socio-economic development, public health and safety, and natural and cultural heritage.

5. MINING PROPERTIES

Great Panther has two active mining properties in Mexico: the GMC and Topia. The Company holds a 100% interest in the properties through its wholly-owned Mexican subsidiary, MMR.

In addition, the Company acquired the Tucano Gold Mine in Brazil on completion of the acquisition of Beadell on March 5, 2019.

5.A. GUANAJUATO MINE COMPLEX

5.A.1 Guanajuato Mine Complex ("GMC")

On October 25, 2005, the Company signed a formal purchase agreement with the Sociedad Cooperativa Minero Metalúrgica Santa Fe de Guanajuato (the “Cooperative”) to purchase 100% of the ownership rights in a group of producing and non-producing silver-gold mines in the Guanajuato Mining District. The total purchase price was $7.3 million, which included 1,107 hectares in two main properties (the Guanajuato and San Ignacio claims), the Cata processing plant (which has a nameplate capacity of 1,200 tpd), workshops and administration facilities, complete mining infrastructure, mining equipment, and certain surface rights. The final payment under this purchase agreement was made in November 2006.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 26

In May 2006, the Company purchased 3.88 hectares of real estate adjacent to the plant at the GMC for a total of $0.7 million from the Cooperative. The decision to buy the extra land was made in order to facilitate any future expansion of the processing plant facilities and to buffer the processing plant site from any possible development nearby.

On December 27, 2007, the Company purchased an additional 0.28 hectares of land immediately adjacent to the plant and below the tailings dam at the GMC from the Cooperative for a total of $0.3 million. The land was primarily purchased to buffer the area from any possible development.

In August 2012, the Company signed a definitive agreement for the purchase of a 100% interest in certain surface rights to a total of 19.4 hectares at the San Ignacio Mine, for the construction of a mine portal and ancillary surface facilities.

5.A.2 Current Technical Report

The information on the GMC in this section of the AIF is based on the technical report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine and San Ignacio Mine, Guanajuato State, Mexico”, dated February 28, 2018, (the “GMC Technical Report”), prepared by Matthew C. Wunder, P.Geo., a “Qualified Person” under NI 43-101. The effective date of the GMC Technical Report is August 31, 2017. Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. The information below is presented in summarized form and reference should be made to the full text of the GMC Technical Report which is available for review under the Company’s profile on SEDAR located at www.sedar.com. The GMC Technical Report includes limited information on the El Horcón and Santa Rosa properties as the current GMC Technical Report provides an update on the Mineral Resource Estimates for the Guanajuato and San Ignacio mines. For detailed information on the El Horcón and Santa Rosa properties refer to the Technical Report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”, dated February 25, 2017.

The GMC includes both the Guanajuato Mine and the San Ignacio Mine. Where applicable, discrete information for each of the properties has been disclosed below.

Mineral feed from both the Guanajuato Mine and San Ignacio Mine is blended and processed at the Cata processing plant which is located at the Guanajuato Mine.

5.A.3 Property Description, Location, and Access

Central Mexico has a dry climate with an annual precipitation of about 600 millimetres per year generally falling between June and October. The annual mean temperature is 25°C, but winters can be cool with lows approaching 0°C. Exploration and mining work can be conducted year-round, uninterrupted by weather.

The GMC is located on the Central Plateau of Mexico in the Sierra Guanajuato, approximately 380 km by road northwest of Mexico City. The terrain is moderately rugged, with elevations on the property ranging from 1,600 masl to 2,200 masl. Hillsides are deeply incised by drainage and slopes are moderately to extremely steep. Vegetation consists of grasses, small trees, shrubs, and cacti. Larger trees grow in the valley bottoms where there is more water.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 27

Guanajuato Mine

The property is accessible via city streets in the city of Guanajuato, in Guanajuato State, Mexico. Guanajuato has a population of approximately 180,000 and is located within 50 kilometres, by road, of an international airport at León, Mexico. The mine is easily accessible from major population centres in central Mexico via a system of modern roads.

San Ignacio Mine

The mine is located approximately 8 km northwest of the city of Guanajuato. Access to the property is provided via a 35-minute drive from the outskirts of the city of Guanajuato (approximately 22 km), mostly by paved road through the towns of Santa Ana and Cristo del Rey.

The Company has negotiated surface rights sufficient for mining operations.

The area where the Guanajuato Mine and the San Ignacio Mine are located is characterized by rolling hills with small-incised drainages, which generally provide windows through thin soil cover to good bedrock exposures.

5.A.3.a Guanajuato Mine

The Guanajuato Mine is an underground silver-gold mine situated along the north-eastern side of Guanajuato. The mine consists of a number of mineralization zones along an approximately 4.2-kilometre strike length, which is being mined from two operating shafts and two ramps. The location of the Guanajuato Mine falls within the second largest (historically) producing silver district in Mexico and the deposits on the Veta Madre trend, the principal host structure, have been mined since the 16th century.

Claim boundaries have been legally surveyed. The 19 mineral claims comprise 680 hectares in a contiguous claim block and expire between 2024 and 2057. The TSF and waste rock dump are contained within the property boundaries in areas where the Company holds surface rights at Guanajuato Mine. There are no known environmental liabilities associated with the mineral claims, other than the previously-mentioned provision recognized on the Company’s Statement of Financial Position for the estimated present value of future reclamation and remediation. This value comprises the provision associated with the Cata plant, TSF area and related infrastructure of the GMC, as well as the provision for the Guanajuato Mine.

5.A.3.b San Ignacio Mine

The San Ignacio Mine lies within La Luz mining camp of the Guanajuato Mining District, located in the southern part of the Mesa Central physiographic province. The Mesa Central is an elevated plateau located in central Mexico. The mineralization on the property consists of epithermal silver-gold veins.

Surface rights owned by the Company are limited to blocks of ground around the old San Ignacio shaft and an additional block over the present underground development (new roads, mine rock dumps, and surface infrastructure). The nine mineral claims comprise 398 hectares and expire between 2031 and 2041. The Company has acquired surface rights sufficient for mining operations. There are no known environmental liabilities associated with the mineral claims, other than the previously referenced provision recognized on the Company’s Statement of Financial Position for the estimated present value of future reclamation and remediation associated with the future retirement of the San Ignacio Mine.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 28

5.A.4 History

Exploration in the Guanajuato area dates back to 1548 when silver mineralization was first discovered in the La Luz area by Spanish colonists. Two years later an outcrop of the Veta Madre was found near the current site of the Rayas Mine. Mining took place on a relatively small scale until the early 1700s when the application of explosives for tunneling resulted in a significant increase in production capacity. In the latter portion of the 18th century, Antonio Obregón y Alcocer financed the discovery and development of the Valenciana Mine. This mine became one of the premier silver mines in the world, at the time accounting for a third of global annual silver production. The Spanish controlled mining in the district until 1816 when mining ceased and all production facilities were destroyed during the Mexican War of Independence. The Valenciana Mine was reopened in 1868 with British capital. The British interests operated the mines for ten years but did not result in much success, losing a considerable amount of money. Operations at that time were hampered by a lack of rail facilities and the necessity of hauling heavy equipment from the coast by mule. Mining production declined during the early 1900s due to low prices. At that time, American interests acquired and reopened many of the mines. Old ore dumps and tailings were reprocessed to extract gold and silver; however, the onset of the Civil War in 1910 severely curtailed mining activity in the country, resulting in a decades-long slump in production.

By the mid-1930s, demands for higher pay and better working conditions resulted in the mines being turned over to the newly-formed Cooperative in 1939. The Cooperative operated several mines in the district throughout the latter half of the 20th century and into the early 2000s.

The Company acquired the GMC from the Cooperative in 2005. At the time of the purchase, the operation suffered from lack of investment and working capital, and had not run at full capacity since 1991. The Company resumed production in 2006 and the mine has operated continuously since that time.

5.A.5 Geological Setting and Mineralization

The GMC is in the Guanajuato Mining District, which is located in the southern part of the Mesa Central physiographic province. The Mesa Central is an elevated plateau of Cenozoic volcanic and volcanoclastic rocks located in central Mexico. It is bounded to the north and east by the Sierra Madre Oriental, to the west by the Sierra Madre Occidental, and to the south by the Trans-Mexican Volcanic Belt.

Rocks within the Mesa Central consist of a Paleocene to Pliocene sequence of dacite-rhyolite, andesite, and basalt, with related intrusive bodies and intercalated local basin fill deposits of coarse sandstones and conglomerates. This Cenozoic volcanic-sedimentary sequence overlies a package of deformed and weakly metamorphosed Mesozoic submarine mafic volcanic and turbidite rocks.

Within the Mesa Central, the GMC is located in the Sierra de Guanajuato, a northwest-trending anticlinal structure approximately 100 km long and 20 km wide. The strata within the belt are transected by northwest, north, east-to-west, and northeast-trending regional scale faults. It is predominantly the northwest-trending structures, however, which control the position of mineralization. Normal fault movement along northeast-trending faults resulted in the downward displacement of certain blocks and the preservation of strata that was eroded in other areas. The northeast faults are therefore important locators of mineral camps within the belt.

Cretaceous volcanic rocks of La Luz Basalt underlie San Ignacio. These rocks are part of a volcanic-sedimentary complex that has various tectonic interpretations, but in general preserves a tectonic history probably related to northeastward tectonic thrust emplacement. By contrast, much of the area to the south-east (e.g., in and around Guanajuato Mine) is underlain by a series of Tertiary volcanic rocks that lie unconformably on La Luz Basalt. The lower Guanajuato conglomerate is widespread and is of mid-Eocene to early Oligocene. Later, volcanic rocks were deposited unconformably on the Guanajuato conglomerate in a caldera setting at the intersection of regional northeast and northwest trending mid-Oligocene extensional fracture systems.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 29

Three main northwest-trending precious metal-bearing vein systems occur in the district: the Sierra, Veta Madre, and La Luz systems.

5.A.5.a Guanajuato Mine

At the Guanajuato Mine, mineralization occurs within fault zones along the Veta Madre vein system as discontinuous shoots and tabular bodies. It is apparent from mine plans that stopes can be in the order of 700 m long and extend for 400 m vertically. Zone thickness ranges from centimetre-scale to tens of metres. A series of mineralizing events is thought to have taken place during the Oligocene, a period of intense felsic volcanic activity in the area, and comprised three stages termed pre-ore, ore, and post-ore. Pre-ore mineralization consists of trace silver and gold with accessory quartz and adularia. Mineralized material comprises an early silver-rich phase associated with adularia, as well as a later low-silver variant, which is typified by calcite and quartz. The post-ore mineralization is also precious metal-poor, with accessory calcite, dolomite, and fluorite.

The primary economic components are silver and gold, with silver the more important of the two. Base metals do not normally occur in economic concentrations. Average silver grades of the ore are typically in the 100 g/t Ag to 500 g/t Ag range but locally can be over 1,000 g/t Ag. Gold grades are generally in the 0.5 g/t Au to 2 g/t Au range, with the exception of the Santa Margarita vein where average grades are in the range of 5 g/t Au to 7 g/t Au. Within the mine, drill core and channel samples are not normally analysed for base metals so average grades for Cu, Pb or Zn have not been obtained.

Mineralization at Guanajuato is closely associated with the structural history. The “Veta Madre” quartz-adularia vein/breccia system is closely associated with the Madre fault and an associated diorite dyke (thickness varying from discontinuous lenses at Guanajuatito to a 50 – 100 m thick body in the Cata, Los Pozos, and Santa Margarita areas), oriented 325 degree azimuth with a 45 degree southwest dip. The Veta Madre forms along the dyke contacts, and in the Esperanza Formation, the footwall rocks to the Madre fault. At the Guanajuatito zone the main mineralization occurs in the deformed siltstone and shale of the Esperanza Formation contiguous with the Veta Madre Fault. Four zones were modeled at Guanajuatito, with the Veta Madre and the closely associated footwall ("FW") zone being dominant below the 80 level. At the Cata zone, Veta Madre mineralization occurs along the base of the diorite dyke with the Esperanza Formation, and as seven separately modelled zones within the diorite. A number of these zones are shallow dipping structural splays. The Los Pozos and Los Pozos SE zones are vein stockwork to breccia systems (Veta Madre) at the base of the diorite dyke and into the Esperanza Formation. The Santa Margarita zones form a complex structural set of four bodies within the diorite dyke and at its upper contact with the Guanajuato Formation conglomerates or basal andesite. These are above the Veta Madre breccia which is at the diorite contact with the footwall Esperanza Formation, but in this area is barren. The San Cayetano zone occurs deep in the Veta Madre south of the Rayas shaft, and tends to be narrow and often in the upper portion of the Veta Madre. The Promontorio zone occurs in the hanging-wall Guanajuato Formation conglomerates immediately above the Veta Madre structure at the contact of the Guanajuato Formation and the diorite dyke. At Valenciana there are parallel mineralized structures (Veta Madre) at the Esperanza Formation – diorite contact and into the Esperanza Formation.

The best mineralization is often found related to bends in the Veta Madre orientation such as at San Vicente in the Rayas area, and at Cata and Santa Margarita. These structural bends may be due to changes in rock type competencies, and varying thickness of the diorite dyke.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 30

The vertical extent of the deposits at Guanajuato spans over 700 m (2,200 m to 1,500 m elevations and open to depth). Mineralization occurring above 2,100 m elevation was termed “upper ore”, between 2,100 m and 1,700 m “lower ore”, and below the 1,700 m elevation “deep ore”. Fluid inclusion microscope work from over 850 samples gathered through the mine and in deep drilling from the Santa Margarita area, indicated boiling zones from the 2,100 m to 1500 m (deepest drilling at the GMC) elevations. Structural observations of up to eight stages of crosscutting brecciation, and the variable range of Ag:Au ratios indicate that the mineralization along the Veta Madre is associated with multi-phase structural activity and fluid flow.

5.A.5.b San Ignacio Mine

San Ignacio is underlain by a package of basalt and andesite volcanic rocks belonging to the lower Cretaceous La Luz andesite. The basalt generally has subtle to well-developed pillow structures that are locally flattened. In a few localities, inter-pillow hyaloclastite is present and is characterized by a fine breccia composed of devitrified glass shards in a fine groundmass. Primary layering and way up indicators are generally difficult to determine from the small outcrops typical of the property, but the San Ignacio stratigraphy is not overturned.

The San Ignacio Mine contains structures of the La Luz vein system comprising numerous mineralized fractures in a northwesterly-trending orientation and extending for a known strike length of approximately eight kilometres. Historically productive veins on the property include the Veta Melladito and Veta Plateros. Other veins identified in the recent Great Panther drilling are the Melladito, Melladito Step, Melladito Splay, Intermediate, Intermediate 2, Nombre de Dios 1, Nombre de Dios 2 and Melladito HW veins. Mineralization is contained within tabular veins, vein stockworks, and breccias. The eight veins with structural continuity inferred from surface mapping and diamond drilling from surface, and now extensive underground development, have been defined up to 1,050 m along strike and 150 m down dip. Six of the veins are very steeply dipping and two are shallowly dipping and are likely off-shoots of the other veins. The veins are accompanied by hydrothermal alteration, consisting of argillic, phyllic, silicic, and propylitic facies.

The primary economic components are silver and gold with approximately equal contributions of each. Economic mineralization consists of fine-grained disseminations of acanthite and pyrargyrite (silver minerals), electrum (gold-silver mineral), with accessory pyrite, and very minor sphalerite and chalcopyrite. Mineral textures in this zone are typically fracture filling, drusy, and colloform masses.

Average silver grades of the eight veins range from 24 g/t to 159 g/t Ag, while average gold grades range from 1.43 g/t to 3.75 g/t Au.

5.A.5.c Deposit Types

The mineral deposits in the Guanajuato area are classic fissure-hosted low-sulphidation epithermal gold-silver-bearing quartz veins and stockwork. Mineralization consists of fine-grained disseminations of acanthite, electrum, aguilarite, and naumannite with accessory pyrite, and relatively minor sphalerite, galena, and chalcopyrite. Gangue minerals include quartz, calcite, adularia, and sericite. The veins are accompanied by hydrothermal alteration consisting of argillic, phyllic, silicic, and propylitic facies. Mineral textures in this zone are typically fracture-filling, drusy, and coliform masses.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 31

Epithermal systems form near surface, usually in association with hot springs, and at depths of several hundreds metres below the paleosurface. Hydrothermal processes are driven by remnant heat from volcanic activity, which in the case of Guanajuato occurred in the middle to late Tertiary. Circulating thermal waters, rising up through fissures, eventually reach the “boiling level” where the hydrostatic pressure is low enough to allow boiling to occur. This can impart a limit to the vertical extent of the mineralization as the boiling and deposition of minerals is confined to a relatively narrow band of thermal and hydrostatic conditions. In many cases, however, repeated healing and reopening of host structures can occur, which causes cyclical vertical movement of the boiling zone, resulting in mineralization that spans a much broader range of elevations. This appears to have occurred at the Guanajuato Mine.

Epithermal type precious metal deposits in the La Luz vein system and specifically in the San Ignacio Mine area are strongly vertically controlled and pinch to centimetre scale at surface, associated with weak shear zones, minor argillic alteration, and weakly anomalous precious metal values. The mineralized vertical interval typically is 100 metres to 150 metres; however, it can range from 50 metres to well beyond 250 metres.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 32

5.A.6 Exploration

5.A.6.a Guanajuato Mine

Exploration work conducted by the Company has consisted of diamond drilling, primarily from underground, and underground development including mapping and sampling.

Until late 2018, exploration drilling has been carried out with the use of three underground drills, two drills under contract and one owner-operated drill. As of the date of this AIF, exploration drilling is being carried out by one contract owned underground drill rig.

5.A.6.b San Ignacio Mine

Great Panther has conducted geological and structural mapping, including sampling of outcrops and from exposures in historical underground workings. Subsequently, the Company completed underground development, geological mapping, sampling and selective mining.

Great Panther completed detailed surface mapping and outcrop rock chip sampling, including mapping and sampling all accessible underground workings pre-2014. Further detailed geological structural mapping was completed in 2015 and was ongoing through 2018, along with upgrading of Mineral Resources at San Ignacio.

5.A.7 Drilling

5.A.7.a Guanajuato Mine

Diamond drilling at Guanajuato is conducted under two general modes of operation: one by the exploration staff (exploration drilling) and the other by the mine staff (production and local expansion drilling). Production drilling is predominantly concerned with definition and extension of the known zones, to guide development and mining and is generally carried out to provide additional confirmation of vein location and geometry as the veins tend to regularly pinch and swell.

Exploration drilling is conducted further from the active mining area with the goal of expanding the Mineral Rresource base. Drilling results from both programs along with underground drift samples are used in the estimation of Mineral Resources.

Exploration drilling, under the control of the mine and exploration staff, is ongoing at Guanajuatito, Cata, Valenciana, Promontorio and San Ignacio. The programs are configured to explore down-dip extensions of the mineralised zones at approximately 25 to 50 metre drill hole spacing. In 2019, Guanajuato was put on care and maintenance, and the mine geological staff were seconded to the exploration department. The exploration department is thoroughly reviewing Guanajutato with a program of geological mapping, rock sampling, 3D modeling and structural interpretation from 24 different areas of the mine, including areas mined by the Company back to Spanish mining in the upper portions of Rayas, Cata, and Valenciana. This review will lead to priority targets to be drilled, starting in March 2019. Initially the drilling will be to check the geological and structural interpretation, but if mineralization is intersected further, drilling will proceed to a detail where a Mineral Resource estimate can be completed.

The management, monitoring, surveying, and logging of the current 2010 to 2017 series of UGG prefix exploration holes and production drill holes was carried out under the supervision of the mine geological staff.

Up to mid-2016 all sample and geological data were entered into a DataShed© database via the LogChief software. Employees at the GMC now capture geological data via Microsoft Access that loads data directly into Microsoft SQL. The contents of the SQL databases are copied daily to a master SQL database at the Company's head office located in Vancouver, and a backup is made every evening.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 33

Assay data files are sent directly from the SGS Group laboratory located at the Cata processing plant (the “SGS-GTO laboratory”) into a specific site on the Cata server. Database management personnel take the assays from this site and merge them with sampling information in the SQL database.

5.A.7.b San Ignacio Mine

Great Panther has completed 367 diamond drill holes at the San Ignacio property to date. Drilling commenced in October 2010 and the last hole completed and logged into the database was completed on October 23, 2018. From the total, 249 holes were drilled from surface and 118 from underground. Drill holes were typically oriented to intersect the veins at a high angle.

In 2017, seven veins were delineated in the northern portion of the property. Data compilation and modeling incorporated results from 208 drill holes, development and underground mapping-sampling programs to define these veins. The veins are located between grid line 100N and 1150N and are continuous along strike for up to 950 metres and 350 metres down dip. Four of the veins are very steeply dipping to the northeast and are considered the main structural orientation of the mineralizing system. The other three veins dip shallowly to the southwest and are considered tensional structures related to the steeper veins.

South of line 100N there are historical workings, and 82 drill holes have been completed in this area. This area is not the subject of the current GMC Technical Report. Also, west of the main mining area, 24 drill holes have been completed which are not the subject of the GMC Technical Report.

Overall, the core recovery was considered very good with recovery percentages averaging 96.4% for surface drilling and 96.8% for underground drilling. There are no factors related to drilling or sampling that could materially influence the accuracy and reliability of the results.

Procedures related to sample and geological data integrity are consistent with those described for the Guanajuato Mine.

5.A.8 Sample Preparation, Analyses and Security

5.A.8.a Guanajuato Mine

The drill core samples were prepared by technicians working under the direction of the mine and exploration geologists. The exploration diamond drill core is of HQ and NQ diameter while the production holes drilled prior to July 2011 generally have an AQ diameter.

Internal QAQC is conducted at the SGS-GTO laboratory and analytical methods used are industry standard. The laboratory is equipped to perform Aqua Regia digestion, fire assay, gravimetry, and atomic absorption spectroscopy (AAS). The laboratory is ISO/IEC 17025 certified.

Both the Geology Department core shed and the SGS-GTO laboratory are located within the Cata Facility which is fenced and guarded around the clock. The site security is of a reasonable standard, consistent with common practical industry standards.

5.A.8.b San Ignacio Mine

All sampling and analytical work was conducted by employees, contractors, or designates of Great Panther.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 34

Sample preparation prior to dispatch to the analytical laboratories consisted of splitting the sample in half by cutting the core using a rock saw. Quality control measures included the insertion of quarter-core duplicates, standard reference materials, and blanks into the sample stream.

Chain of custody was established upon sample collection with the use of unique sample ID, documentation of samples per shipment to the lab, and sign-off forms for receipt of samples by the laboratory.

Prior to dispatch, the samples were stored within the core storage and logging facility located at the Company’s Cata processing plant site.

Most of the analytical work was completed by the SGS-GTO laboratory and the quality control measures and data verification procedures are consistent with those described for the Guanajuato Mine.

5.A.9 Mineral Resource Estimates

5.A.9.a Guanajuato Mine

The Guanajuato Mine Mineral Resource Estimate has an effective date of August 31, 2017 and updates the previous resource estimate to reflect depletion due to mining and resource definition resulting from successful exploration activities.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other factors that could materially affect these Mineral Resource estimates.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 35

Class	Vein	Tonnes	Ag (g/t)	Ag (oz)	Au (g/t)	Au (oz)	Ag eq (g/t)	Ag eq  (oz)
MEASURED	Cata	37,030	355	422,167	1.61	1,912	468	557,142
	Los Pozos	48,817	217	341,243	1.11	1,738	296	463,972
	Guanajuatito	33,962	256	279,592	1.22	1,329	342	373,403
	Santa Margarita	11,443	128	47,170	2.61	960	312	114,933
	Valenciana	7,084	155	35,225	1.51	343	261	59,455
	San Cayetano	24,958	102	82,198	1.96	1,569	241	192,980
	Promontorio	7,683	154	37,973	1.69	417	273	67,396
Total Measured		170,978	227	1,245,568	1.50	8,268	333	1,829,281
INDICATED	Cata	5,784	355	66,022	1.33	248	449	83,536
	Los Pozos	18,455	207	202,223	1.05	952	281	166,710
	Guanajuatito	10,313	224	74,230	1.17	389	307	101,705
	Santa Margarita	2,947	191	18,091	1.60	151	304	28,781
	Valenciana	–	–	–	–	–	–	–
	San Cayetano	5,347	101	17,302	1.64	282	217	37,225
	Promontorio	1,083	163	5,663	1.86	65	294	10,233
Total Indicated		43,929	215	383,530	1.25	2,088	303	428,190
MEASURED & INDICATED	Cata	42,814	355	488,189	1.57	2,160	465	640,678
	Los Pozos	67,272	214	543,466	1.09	2,691	292	630,682
	Guanajuatito	44,275	249	353,822	1.21	1,718	334	475,109
	Santa Margarita	14,390	141	65,260	2.40	1,111	311	143,714
	Valenciana	7,084	155	35,225	1.51	343	261	59,455
	San Cayetano	30,305	102	99,500	1.90	1,851	236	230,205
	Promontorio	8,766	155	43,637	1.71	481	275	77,629
Total M & I		214,907	223	1,629,098	1.45	10,356	327	2,257,472
INFERRED	Cata	1,432	255	11,738	0.98	45	324	14,909
	Los Pozos	29,181	182	170,806	1.11	1,038	260	244,106
	Guanajuatito	7,368	194	45,869	0.97	230	262	62,096
	Santa Margarita	11,686	333	124,969	1.64	617	448	168,498
	Valenciana	94,415	102	310,598	2.46	7,463	276	837,410
	San Cayetano	13,518	57	24,830	2.23	971	215	93,356
	Promontorio	1,247	152	6,106	1.71	69	273	10,960
Total Inferred		158,846	136	694,917	2.04	10,432	280	1,431,334

Notes

1. Cut-offs are based on the marginal operating costs per mining area, being $76/tonne for Cata, $70/tonne for Santa Margarita/San Cayetano, $68/tonne for Los Pozos, $93/tonne for Guanajuatito, and $80/tonne for Valenciana/Promontorio.

2. Block model grades converted to USD value using plant recoveries of 87% Ag, 86.8% Au, and net smelter terms negotiated for pyrite concentrates.

3. Rock Density for all veins is 2.68t/m³.

4. Totals may not agree due to rounding.

5. Grades in metric units.

6. Contained silver and gold in troy ounces.

7. Minimum true width 1.0 m.

8. Metal Prices: $17.00/oz silver and $1,300/oz gold.

9. Silver equivalent was calculated using a 70 to 1 ratio of silver to gold value.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 36

5.A.9.b San Ignacio Mine

The February 28, 2018 Mineral Resource Estimate at San Ignacio has an effective date of August 31, 2017 and updates the previous resource estimate to reflect depletion due to mining and resource definition resulting from successful exploration activities.

Updated drilling and interpretation of zones in 2017 has resulted in the addition of Nombre de Dios 1.5 and Nombre de Dios 2S zones and the elimination of the Melladito Step and Melladito HW zones.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other factors that could materially affect these Mineral Resource estimates.

Class	Domain	Tonnes	Ag (g/t)	Ag  (oz)	Au  (g/t)	Au (oz)	Ag eq (g/t)	Ag eq (oz)
MEASURED	Melladito	338,492	117	1,276,330	3.18	34,638	342	3,721,772
	Melladito BO	115,669	82	303,101	3.09	11,488	300	1,114,185
	Intermediate	109,602	168	592,341	2.76	9,717	363	1,278,345
	Intermediate 2	84,276	210	568,356	3.73	10,106	473	1,281,862
	Nombre De Dios	50,357	149	241,493	2.93	4,737	356	575,917
	Nombre De Dios 1.5	35,791	142	163,178	2.23	2,565	299	344,260
	Nombre De Dios 2S	67,280	236	510,648	2.99	6,473	447	967,615
	Nombre De Dios 2	-	-	-	-	-	-	-
Total Measured		801,468	142	3,655,447	3.09	79,724	360	9,283,955
INDICATED	Melladito	61,872	92	183,285	3.02	6,016	306	607,997
	Melladito BO	22,777	76	55,346	3.61	2,644	330	242,012
	Intermediate	23,605	191	145,223	2.57	1,950	373	282,901
	Intermediate 2	23,652	167	127,220	1.72	1,308	289	219,582
	Nombre De Dios	18,584	128	76,323	2.49	1,490	304	181,530
	Nombre De Dios 1.5	12,146	129	50,330	1.49	582	234	91,406
	Nombre De Dios 2S	34,314	219	241,078	2.72	3,001	411	452,939
	Nombre De Dios 2	-	-	-	-	-	-	-
Total Indicated		196,949	139	878,805	2.68	16,991	328	2,078,368
MEASURED & INDICATED	Melladito	400,364	113	1,459,615	3.16	40,654	336	4,329,769
	Melladito BO	138,446	81	358,447	3.18	14,132	305	1,356,197
	Intermediate	133,207	172	737,564	2.72	11,667	365	1,561,246
	Intermediate 2	107,928	200	695,576	3.29	11,415	433	1,501,444
	Nombre De Dios	68,940	143	317,816	2.81	6,227	342	757,447
	Nombre De Dios 1.5	47,937	139	213,507	2.04	3,147	283	435,666
	Nombre De Dios 2S	101,595	230	751,726	2.90	9,473	435	1,420,554
	Nombre De Dios 2	-	-	-	-	-	-	-
Total Measured & Indicated		998,417	141	4,534,252	3.01	96,715	354	11,362,323
INFERRED	Melladito	99,307	58	185,811	2.85	9,113	260	829,192
	Melladito BO	22,661	75	54,731	3.67	2,670	334	243,259
	Intermediate	33,026	150	158,787	2.30	2,442	312	331,164
	Intermediate 2	35,560	166	189,987	2.37	2,712	334	381,456
	Nombre De Dios	164,263	128	674,972	2.01	10,592	269	1,422,743
	Nombre De Dios 1.5	66,406	132	280,965	1.79	3,819	258	550,583
	Nombre De Dios 2S	47,197	171	260,061	2.23	3,389	329	499,294
	Nombre De Dios 2	105,010	175	589,906	3.01	10,175	388	1,308,281
Total Inferred		573,431	130	2,395,220	2.44	44,911	302	5,565,972

Notes

1. Cut-offs are based on the marginal operating costs per mining area being $71/tonne for San Ignacio.

2. Block model grades converted to USD values using plant recoveries of 84% Ag, 84% Au, and net smelter terms negotiated for pyrite concentrates.

3. Rock density for Intermediate 2.64 t/m³, Intermediate 2 – 2.66 t/m³, Melladito 2.63 t/m³, Melladito BO 2.65 t/m³, Nombre de Dios 2.64 t/m³, Nombre de Dios 1.5 2.63 t/m³, Nombre de Dios 2 & Nombre de Dios 2S 2.62 t/m³.

4. Totals may not agree due to rounding.

5. Grades in metric units.

6. Contained silver and gold in troy ounces.

7. Minimum true width 1.0 m.

8. Metal Prices: $17.00/oz silver and $1,300/oz gold.

9. Silver equivalent was calculated using a 70 to 1 ratio of silver to gold value.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 37

The Mineral Resource Estimates for Guanajuato and San Ignacio were completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique was utilized in the estimation of grade to each of the blocks in the block models. An NSR calculator was used to convert block grades into NSR (USD/tonne) values (considering mill recoveries, smelter terms, and designated metal prices).

5.A.10 Mineral Reserve Estimates

There are no Mineral Reserve estimates for the GMC. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

5.A.11 Mining Operations

5.A.11.a Guanajuato Mine

Guanajuato consists of a series of interconnected, previously independent, mines including Promontorio, Santa Margarita, Rayas, Los Pozos, Cata, Valenciana and Guanajuatito.

Mining at Guanajuato predominantly comprises cut and fill stoping, with some pillar recovery in historic workings, and a few zones where ore extensions are discovered and mined over a period of a few months. Mining is generally more selective using jacklegs. However, where possible, mechanized cut and fill is utilized.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 38

Two main shafts serve access to the active mine areas, while several other old shafts provide ventilation support. The Rayas shaft is used for transportation of personnel and supplies, while the Cata shaft, located just above the processing plant is used to transport the mineralized material for milling. Two ramps, San Vicente and Guanajuatito, provide the access at each end of the mine network, including for mobile equipment.

Rock integrity at Guanajuato is considered favorable, but occasionally roof support, in form of rock bolting, and occasionally wire mesh, is required.

Mining is conducted by contractors, primarily sourced from nearby communities, utilizing equipment owned by the Company and the contractors. Mine contractors and equipment are alternated frequently between the mines, including San Ignacio, to accommodate the mining sequencing.

5.A.11.b San Ignacio Mine

Mining at San Ignacio started in the third quarter of 2013 and commercial production was declared in the second quarter of 2014.

The mining method is mechanized cut and fill with fill provided by waste development. Jacklegs are used in stopes for vertical to 70 degree production holes, and if necessary the hanging wall can be blasted to create a 2.0 metre wide stope. Forced air ventilation uses electric fans, and sump pumps operate at 50-60 gpm removing mine water. The two electric air compressors deliver 1,000 cfm at 100 psi. The mine’s electric power is supplied by the Mexican national grid.

Mineralized material is trucked to the Cata processing plant using highway rated trucks with 20 tonne payload.

5.A.12 Recovery Methods

Mineralized material from both the Guanajuato Mine and San Ignacio Mine is blended and processed at the Cata processing plant at the Guanajuato Mine.

The three-stage crushing plant is designed to produce ball mill feed that is less than 3/8 inch in size. Run-of-mine material is passed through a grizzly, into the 1,000 tonne coarse material bin. Oversize is broken manually or with a backhoe-mounted rock-hammer. The coarse material is approximately minus 18 inch material. From the coarse bin the material is taken by an apron feeder and over a vibrating grizzly to the Pettibone (24 inches by 36 inches) primary jaw crusher. The jaw crusher has a closed setting of four inches. A second 500 tonne capacity coarse material bin is available, complete with a smaller crusher to enable separate handling of material if desired.

The flotation section was greatly improved with the installation of five automated Outotec cells in 2012, which replaced the old sections of rougher cells. The flotation products of these cells are sent, according to their quality, to cleaning cells or recirculated with scavenger products and cleaner tails for regrinding. After the cleaning step, the concentrate is sent to the concentrate thickener section and filtered to remove excess water, leaving final average moisture content of 11%. Final product concentrate is transported by highway trucks to the point of sale according to existing contracts.

In addition, a small mill for regrinding was installed in April 2012. The middling products (i.e. cleaning cell tails together with the scavenger products) are reground to liberate the valuable sulfides before being recirculated to the head of the flotation circuit.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 39

Over the last eight years, other improvements include (i) installation of a new electrical substation, (ii) total change of electrical cables, (iii) new tailings pumping system to the tailings dam (fully instrumented), and (iv) the implementation of a single pump station to replace the old system with five pumping stations to reduce electrical consumption.

5.A.13 Infrastructure, Permitting and Compliance Activities

The GMC operations also include anciliary infrastructure for senior management, technical services, assay laboratory, warehousing, finance, and other administrative services, and are located adjacent to the Cata processing plant. There are other smaller mine buildings located at San Vicente and San Ignacio.

The GMC operation enjoys proximity to urban development, including power and road infrastructure. Medical facilities are available at a short distance.

In 2016, the Company entered a voluntary environmental audit program in cooperation with PROFEPA, the compliance arm of the SEMARNAT environmental authority. Following the audit, and identification of improvement areas, a mitigation plan was devised to resolve all outstanding improvements over the next few years. This voluntary program was chosen as a proactive measure to correct any deficiencies during which the Company would enjoy a cooperative relationship with the authority, while limiting its exposure to any new citations and penalties.

In a February 2016 meeting, the Mexican national water authority, CONAGUA, required that the Company make formal applications for permits associated with the occupation and construction of the TSF at the GMC. Following the meeting, the Company filed its applications and CONAGUA carried out an inspection of the TSF and requested further technical information which the Company submitted. In December 2017, the Company also filed with the Mexican environmental permitting authority, SEMARNAT, an amendment to the environmental impact statement reflecting the proposed normal TSF construction activities. This is under review by the regulator, and once approved, will satisfy a requirement by CONAGUA for the processing of its permits. The Company believes its current tailings footprint can be maintained and can support operations at the GMC until at least 2020. The Company also believes, based on its meetings and other communication with CONAGUA, that it will be able to obtain all the above noted permits as required, with no suspension of the GMC operations. While the Company is confident that it will obtain the tailings permits, the Company cannot provide complete assurance that it will complete the review process with CONAGUA without any actions that may suspend its operations. The Company cannot assure that the tailings permits will be obtained or renewed on reasonable terms, or at all. Delays or a failure to obtain such required permits, or the issuance of permits on unfavourable terms or the expiry, revocation or failure by the Company to comply with the terms of any such permits, if obtained, could limit the ability of the Company to expand the tailings facility and could adversely affect the Company’s ability to continue operating at the GMC. In either case, the Company’s results of operations could be adversely affected.

Since the February 2016 meeting with CONAGUA, the Company has also discovered through its own undertakings that additional CONAGUA permits may be needed in connection with water discharge and water use at the GMC TSF and at San Ignacio. The Company is assessing technical options and whether it requires an additional water use permit. The Company believes that it will be able to address or mitigate the need for any necessary water discharge and use permits without any impact to its operations, but the Company cannot provide complete assurance that there is no risk in this regard.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 40

5.A.14 Operating Costs

Operating costs at the GMC were as follows:

	2018					2017
	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
Cost per tonne milled	$   107	$   99	$   114	$   111	$   103	$   92	$   99	$   96	$   91	$   83
Cash cost	$  10.23	$  12.25	$  17.21	$    9.59	$    4.28	$    4.32	$   5.65	$     3.75	$    5.44	$    2.48
Cash cost per Ag eq oz	$  13.54	$  14.08	$  15.87	$  14.49	$  12.69	$  11.58	$  12.49	$  11.58	$  11.78	$  10.41
AISC	$  14.14	$  14.53	$  21.68	$  13.74	$    9.01	$    9.17	$  10.38	$    7.90	$  10.89	$    7.59
AISC per Ag eq oz	$  15.20	$  15.13	$  17.84	$  16.28	$  14.80	$  13.94	$  14.69	$  13.57	$  14.46	$  13.00

Cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC, and AISC per Ag eq oz are non-GAAP measures. Reconciliations of these measures to the figures presented in the Company's audited financial statements are presented in the "Non-GAAP Measures" section of the Company's Management Discussion and Analysis for the years ended December 31, 2018 and 2017.

5.A.15 Production, Exploration and Development

5.A.15.a Production

Overall production at the GMC for 2019 is planned to produce at lower levels compared to 2018.

The Company has established a LOM estimate for the GMC assets of approximately three years (at December 31, 2018) in connection with the GMC Technical Report, dated February 28, 2018. This LOM estimate does not include additional resources which may be discovered through ongoing exploration drilling. The Company re-evaluates its LOM estimate on an annual basis. The timing and amount of reclamation and remediation is subject to future changes in the LOM estimate. For example, the addition of resources through ongoing exploration drilling could extend the LOM estimate.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 41

Tonnes milled – GMC

 

 

Silver Ounce Production – GMC

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 42

 

Gold Ounce Production – GMC

5.A.15.b Exploration and Development

For 2019, 11,415 metres of core drilling are planned at the GMC, 2,400 metres of which are initially planned for the Guanajuato Mine, and to be augmented once targets are refined by the initial drilling. The focus of the drilling will be on increasing Mineral Resources in the areas of Cata, Los Pozos, Guanajuatito, San Cayetano, Santa Margarita and Valenciana. At San Ignacio, plans for 2019 include 5,400 metres of surface exploration drilling and 3,615 metres of underground extension and definition drilling.

For 2019, 5,617 metres of underground development are planned for the GMC, all of which are planned for San Ignacio.

5.B.           TOPIA

5.B.1 Topia Mine

Effective February 18, 2004, the Company entered into an option agreement, which granted it the right and option, for a term of one year, to purchase 100% of the ownership rights in and to all the fixed assets, machinery, equipment (including the mill, buildings, offices, houses and quarters for the workers) and Topia Mining Concessions located in the Municipality of Topia, state of Durango, Mexico from Compañía Minera de Canelas y Topia, as optionor, by making cash payments totalling $1.7 million. The Company completed the cash payments on exercise of the option in February 2005. In addition to the payments to the optionor, the Company agreed to assume debt encumbering the property totalling $0.8 million upon signing of the purchase agreement. The debt owing was secured by Topia’s assets. The balance of the debt was repayable out of production from concentrate sales as a 10% NSR royalty. After the debt was repaid, there was no further royalty. The remaining debt balance was fully paid and there are no outstanding conditions to retain title to the property.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 43

The Company has mineral rights covering the operating mines and associated properties. The Company has surface rights for the land on which the plant sits and agreements for the properties covering the operating mines and tailings facilities.

5.B.2 Current Technical Report

The information on Topia in this section of the AIF is based on the technical report entitled “NI 43-101 Report on the Topia Mine Mineral Resource Estimates, as of July 31, 2018” prepared by Robert F. Brown, P.Eng., a “Qualified Person” (and “Topia Qualified Person”) under NI 43-101, February 28, 2019 (in this section, the “Topia Technical Report”). Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. The information below is presented in summarized form and reference should be made to the full text of the Topia Technical Report which is available for review on SEDAR located at www.sedar.com.

5.B.3 Project Description, Location and Access

Great Panther holds a 100% interest in Topia through its wholly owned Mexican subsidiary, MMR.

The Topia Mine is situated in the Sierra Madre, around the town of Topia, Durango State, Mexico, approximately 235 kilometres northwest of the city of Durango. Ground access is provided via 350 kilometres of paved and gravel road, travelling north from the city of Durango, via Highway 23 to Santiago Papasquiaro, and then west to Topia. Total travel time by road is approximately eight hours. Small aircraft flights from Culiacán and Durango service the town of Topia daily.

The property encompasses 53 contiguous concessions that total approximately 6,686 hectares. The Topia mill and office complex is located at approximately 25° 12' 54" N latitude and 106° 34' 20" W longitude.

The Topia area lies within the Sierra Madre Occidental (“SMO”), in a remote region of rugged terrain. Hillsides are quite steep with elevations ranging from 600 masl up to over 2,000 masl.

The climate is generally dry for most of the year, with a wet season from June to September, during which time 200 millimetres to 500 millimetres of rain may fall. The annual mean temperature is 17°C, but winters can be cool with frosts and light snow, particularly at higher elevations. Exploration and mining work can be conducted year-round.

Vegetation consists of thickly inter-grown bush, comprising mesquite, prickly pear, nopal and agave, giving way to pine and oak forest at higher elevations.

Land use in the area is predominantly mining, forestry and agriculture.

5.B.4 History

Mining in the region predates European colonization and was first reported in the Topia area in 1538. The first mineral concessions were granted at Topia in the early 1600s.

Production from Topia during the period spanning the latter portion of the 19th century until the Mexican Revolution in 1910 was reportedly between $10 million and $20 million. This is estimated to have been the equivalent of between 15 million and 30 million ounces of silver.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 44

Compañía Minera Peñoles SA (“Peñoles”) acquired the mines in the district in 1944 and completed the construction of a flotation plant in 1951. Peñoles operated at Topia from 1951 to 1990 when the operations were sold to Compañía Minera de Canelas y Topia which carried on operations privately until 1999 when the mine was shut down due to low metal prices. Production for the period 1952 to 1999 totalled 17.6 million ounces of silver and 18,500 ounces of gold.

The Company acquired Topia in 2004. During the second half of 2005, Great Panther refurbished and recommissioned the mill and gradually increased the throughput at the plant. At the end of 2005, the mine was put back into production, after having been on care and maintenance for the prior six years. Since 2005, the Company has undertaken the rehabilitation of many of the mines in order to re-access the Argentina, La Dura, Don Benito, El Rosario, San Gregorio, San Miguel, San Jorge, La Prieta, Cantarranas, Animas, Oliva, Las Higueras, San Pablo, Oxi, Oxidada and Recompensa veins and resample parts of the veins as part of a due diligence on sampling carried out by Peñoles. This resampling, combined with the sampling carried out by Peñoles, forms a partial basis for the current Mineral Resource estimate.

Since 2006, underground exploration and production channel samples have been collected by Great Panther from all stopes and development drifts. This work included new development along the San Gregorio, El Rosario, Cantarranas, Don Benito, Las Higueras, San Pablo, Oxi, Oxidada, La Prieta and Recompensa veins. Exploration diamond drilling programs have targeted the various vein structures.

5.B.5 Geological Setting, Mineralization and Deposit Types

The Topia district lies within the SMO, a north-northwest-trending belt of Cenozoic-age rocks extending from the US border southwards to approximately 21°N latitude. The belt measures roughly 1,200 km long by 200 km to 300 km wide. Rocks within the SMO comprise Eocene to Miocene age flows and tuffs of basaltic to rhyolitic composition with related intrusive bodies. The property is underlain by a kilometre-thick package of Cretaceous and Tertiary andesite lavas and pyroclastic rocks which are, in turn, overlain by younger rhyolitic flows and pyroclastics. The volcanic sequence is transected by numerous faults, some of which host the mineralized veins in the district. There are two sets of faults: one striking 320° to 340° and dipping northeast and the other striking 50° to 70° and dipping steeply southeast to vertically. The northeast-trending faults are the principal host structures for precious and base metal mineralization.

The mineral deposits at Topia are adularia-sericite-type, silver-rich, polymetallic epithermal veins. Silver-gold-lead-zinc mineralization is found in fissure-filling veins along sub-parallel faults. Mineralization within the veins consists mainly of massive galena, sphalerite, and tetrahedrite in a gangue of quartz, barite, and calcite. The vein constituents often include adularia and sericite, and the wider fault zones contain significant proportions of clay as both gouge and alteration products.

Ore minerals occur as cavity-filling masses, comprising millimetre-scaled crystals of galena and sphalerite. No definitive metal zoning has been discerned, but the lower parts of the mines are reported to contain higher gold content than at higher elevations.

The veins range in thickness from a few centimetres to three metres. They are very continuous along strike, with the main veins extending more than four kilometres. The Madre vein has been mined for 3.5 kilometres and the Cantarranas vein for 2.4 kilometres. Many of the other veins have been mined intermittently over similar strike lengths. Vertically, the veins grade downward to barren coarse-grained quartz-rich filling and upwards to barren cherty quartz-calcite-barite vein filling. The main host rock is andesite of the Lower Volcanic Series, which is usually competent, making for generally good ground conditions within the mine. In wider sections, with greater clay content and/or zones of structural complexity, ground conditions are less favourable.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 45

5.B.6 Exploration

Exploration work carried out at Topia by Great Panther has comprised diamond drilling, chip sampling, mapping, and underground development. The underground drilling from 2006 to 2014 was focused on short term production and local expansion of the mineralized veins in all mining areas at Topia. Typically, these include interpretation of fault offsets, gaining a better understanding of multiple splays from the primary veins, and a better understanding of grade/width of veins before exploitation. Underground drilling re-commenced in July 2018 and is ongoing as of the date of this report.

5.B.7 Drilling

Great Panther has been diamond drilling at Topia since 2004. Drill programs were planned and supervised by personnel employed by the Company, its subsidiaries, and/or contractors. The surface drilling programs conducted from 2004 to 2012 and in 2017 were carried out under contract. Underground drill programs were carried out by Topia drillers. Core logging and collar surveys were carried out by Great Panther personnel. All surface holes are NQ-size, although some surface holes were collared as HQ (6.35 cm diameter) and reduced to NQ. Underground drill holes are A size core.

Core logs, sample intervals, and surveys are entered into a Microsoft SQL database using a proprietary logger. The database is managed and validated by Great Panther mine staff, with the assistance of exploration personnel based in Vancouver.

The core logging and sampling is carried out within a fenced compound at the mill site. Access to the core is restricted to Great Panther employees or contractors. The core shack and sampling facility are adequately equipped and secure. Core recovery in those sections reviewed by the Topia Qualified Person was appropriate, and the sampling was done correctly.

5.B.8 Sampling, Analysis and Data Verification

Sampling comprises both diamond drill and channel samples. Drill holes provide a reliable indication of the vein locations but drifting and raising on vein was required to fully evaluate the quantity and grade of the Mineral Resources.

The channel sampling was conducted either across the back or at waist height across the drift face using a hammer and moil. The protocol for sample lengths was that they were to be no longer than two metres. Sample spacing was in the order of 1.5 metres to 2.5 metres in the more densely sampled areas. The veins tend to be very steeply dipping to vertical, and so these samples are reasonably close to representing the true width of the structure.

The channel samples were processed and assayed at the Topia laboratory. Samples were dried, crushed in two stages, riffle split and pulverized. A sample was taken from the pulp and weighed, while the rest was kept in storage. Samples were analyzed for gold and silver by fire assay and gravimetric finish, or for base metals by atomic absorption.

Diamond drill core samples were marked on the core by geologists. Samples did not cross lithological limits and their lengths were constrained to within a minimum of 10cm and a maximum of two metres. Mineralized structures and the material adjacent to them were always sampled. For sets of veins with less than five metres separation, the material between veins was sampled entirely. Samples were taken using a diamond saw to split the core. The samples were prepared at the Topia laboratory.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 46

The total database encompasses three components: diamond drilling, production channel sampling, and the historical development channel sampling completed by the former owner, Peñoles. All three datasets were variably used in the modeling of the various veins and vein splays. Peñoles data in certain mines were minimal.

In the opinion of the Qualified Person at the time, the sampling at Topia was conducted in an appropriate fashion using techniques that are commonly used in the industry. The samples were properly located and oriented and were representative of the mineralization. Assaying is being conducted using conventional methods, in facilities that are properly configured and managed. Performance of the laboratory is being monitored by both internal QA/QC protocols and comparison with an external laboratory.

All phases of the sampling, transport and assaying were carried out under the supervision of Great Panther authorized personnel or authorized contractors. The Topia lab and core handling facility are enclosed within the mill compound, which was constantly supervised and reasonably secure. The sample preparation, analysis, and security procedures at Topia were adequate and consistent with common industry standards.

5.B.9 Mineral Resource Estimates

An updated estimate of Mineral Resources has been completed for Topia with an effective date of July 31, 2018 (refer to the corresponding Topia Technical Report dated February 28, 2019 filed on SEDAR).

		Grade
Classification	Tonnes	Ag (g/t)	Au (g/t)	Pb (%)	Zn (%)
Measured	310,600	474	1.36	4.02	4.20
Indicated	165,300	436	1.34	3.57	3.79
Total Measured and Indicated and Average Grades	475,900	461	1.35	3.87	4.06
Inferred	400,400	434	1.34	2.86	2.97

Notes:

1. CIM Definitions were followed for Mineral Resources.

2. Area-Specific Bulk Densities as follows: Argentina - 3.06t/m3; 1522 - 3.26t/m3; Durangueno - 3.12t/m3; El Rosario - 3.00t/m3; Hormiguera - 2.56t/m3; La Prieta - 2.85t/m3; Recompensa - 3.30t/m3; Animas - 3.02t/m3; San Miguel - 2.56t/m3.

3. Net Smelter Return (“NSR”) cut-offs include 1522 Mine $193/t, Argentina Mine $172/t, Durangueno Mine $144/t, Recompensa Mine $151/t, Hormiguera Mine $152/t, El Rosario Mine $173/t, La Prieta $235/t, Animas $149/t, and San Miguel $248/t.

4. Totals may not agree due to rounding.

5. A minimum mining width of 0.30 metres was used.

6. Mineral Resources are estimated using metal prices of: $1,225/oz Au, $15.50/oz Ag, $1.00/lb Pb, and $1.15/lb Zn.

7. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

The resources were estimated from seven area-specific block models. A set of 52 wireframes representing the mineralized zones (veins) served to constrain both the block models and data subsequently used in Inverse Distance Cubed (ID3) gold, silver, lead and zinc grade interpolations. Each block residing at least partly within one of the 52 wireframes received a grade estimate.

5.B.10 Mineral Reserve Estimates

There are no Mineral Reserve estimates for Topia.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 47

5.B.11 Mining Operations

Topia consists of several mines, which comprise Argentina, 15-22, San Miguel, 9 North, Animas, Recompensa, Hormiguera, El Rosario, La Prieta and Durangueno.

Mining at Topia generally consists of development along very narrow veins. Mining is selective using jacklegs, however, where possible, mechanized cut and fill is deployed. All mines are accessed via ramps, although internal passes are constructed to access the upper and lower ore zones. Rock integrity at the mines at Topia is considered favorable, but on rare occasions roof support, in the form of rock bolting, and occasionally wire mesh, is required.

Mining is conducted by contractors and inhouse miners sourced from nearby communities and outside cities, and utilizes equipment owned mostly by the Company. Mine contractors and equipment are alternated frequently between the mines to accommodate the variations in production plans.

For the narrower veins at Topia, mining is conducted by overhand cut and fill stoping with resuing to selectively mine the mineralized material separate from the waste to minimize dilution. Drilling is performed with jackleg drills and mineralized material is hand mucked in the stope and dropped down timber crib muck passes which are developed upwards as the stoping advances. Mineralized material is hand sorted at the face so that only the higher-grade material is removed from the stope. Worker access and ventilation is provided in timber crib man-ways adjacent to the muck passes. The level interval for the stopes is typically 40 m.

The use of ground support in the small tunnels and narrow stopes is infrequent as the small headings require little support.

From the muck passes the mineralized material is pulled via manual chutes, loaded into small rail cars and hand trammed to a stockpile at the portal. At the surface ore stockpile, the mineralized material may again be hand sorted to remove waste material. The mineralized material is then picked up by front end loader and loaded into highway-style 10 ton to 20 ton capacity dump trucks to be hauled to the mill.

Along the Argentina and Don Benito veins, in the Argentina and 15-22 Mines respectively, there are significant areas with vein widths ranging from 0.5 to 1.0 metre. In these wider areas, mechanized cut and fill mining is applied with resuing to control ore dilution with waste. Mobile equipment used includes small 2 cubic yard LHDs for development and 1 cubic yard and 0.5 cubic yard LHDs for mucking in the stopes. Development access is provided via decline. Ground support consists of rock bolts and mesh as required.

Sublevels are 40 metres apart in the mechanized cut and fill areas. Waste is either generated from material beside the vein, which is blasted separately from the mineralized material, or elsewhere from waste development within the mine to remain as backfill.

Lifts in the cut and fill stope are taken with horizontal holes (breasting) instead of drilling uppers (which is more productive) since it generates a ragged back leading to problems with ground support.

Mineralized material is hauled from the stopes by LHD and then loaded into a truck for haulage to the mill.

5.B.12 Processing and Recovery Operations

The mill employs conventional crushing, grinding, and flotation to produce lead and zinc sulfide concentrates. The operation normally runs seven days a week, 24 hours per day, with a weekly maintenance shift. The conventional wet tailings handling system was transitioned to dry stack by construction of a filtration facility that commenced operation in 2017.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 48

5.B.13 Infrastructure, Permitting and Compliance Activities

Topia is a relatively small town of approximately 3,500 people. However, a good portion of the population has worked in mining and there is a good local source of labour. The town is serviced by road, chartered air service, power grid, telephone, and a high-speed microwave communication system. There are restaurants, hostels, and medical services; however there are no banks or automated banking machines. Great Panther uses a microwave point-to-point service for telephone and internet, and also maintains fixed telephone lines for redundancy. Water is available from numerous springs, streams and adits.

The surface and underground infrastructure at Topia includes the following:

· Extensive underground workings;

· Multiple adits from surface as well as raises, drifts, cross-cuts, sub-levels and ramps;

· Mine ventilation, dewatering and compressed air facilities;

· Conventional and mechanized underground mining equipment;

· Mine, geology, processing and administrative offices;

· A flotation concentrator with surface bins, crushing facilities, grinding mills, flotation cells and concentrate dewatering circuit;

· A tailings filtration and dry stack storage facility; and

· Connection to the national grid for the supply of electric power.

There are no known environmental liabilities associated with the mineral claims, other than the previously referenced provision recognized on the Company’s Statement of Financial Position for the estimated present value of future reclamation and remediation associated with the future retirement of Topia.

All permits are in place for Topia, the latest being the permit issued by SEMARNAT in December 2017 for use of the Phase II TSF for deposition of filtered tailings. Phase II is a dry stack operation using filter cake. The deposition includes stacking and compaction of the material. While detailed design and engineering of the under drainage of the lower bench of Phase II is underway, the Company is utilizing the upper bench of Phase II for the deposition of dry stack tailings and expects to continue to do so throughout 2019.

Phase I of the TSF was closed and contoured during 2018. Based upon recommendations from an independent consulting firm, three additional instrumentation stations in the footprint of the TSF will be put in place in 2019 for the purposes of continuous monitoring.

The independent consulting firm will continue to perform an annual review of Phase I, as well as conduct geotechnical reviews and provide design considerations for Phase II.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 49

Reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF, have led to a broader review by the Mexican environmental compliance authority, the Procuraduría Federal de Protección al Ambiente ("PROFEPA") and by the Company of the permitting status for all of Topia operations, environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, the Topia Mine was accepted into a voluntary environmental audit program supported by PROFEPA which commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings and has until January 2020 to complete this. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates will be submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program further reviews will not lead to future suspensions of operations.

5.B.14 Operating Costs

Operating costs at Topia were as follows:

	2018					2017
	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q11
Cost per tonne milled	$     180	$     176	$     184	$     162	196	$     190	$     194	$     199	$     157	nm
Cash cost	$    6.90	$    7.54	$    7.77	$    4.72	7.48	$    9.53	$  10.35	$  10.01	$    6.15	nm
Cash cost per Ag eq oz	$  10.82	$  10.80	$  10.46	$  10.77	12.94	$  13.79	$  14.82	$  14.31	$  10.70	nm
AISC	$    8.50	$    9.13	$    9.73	$    6.71	8.27	$  14.98	$  11.70	$  10.71	$  10.78	nm
AISC per Ag eq oz	$  11.67	$  11.64	$  11.48	$  11.93	13.41	$  17.01	$  15.59	$  14.72	$  13.58	nm

Cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC, and AISC per Ag eq oz are non-GAAP measures. Reconciliations of these measures to the figures presented in the Company's audited financial statements are presented in the "Non-GAAP Measures" section of the Company's Management Discussion and Analysis for the years ended December 31, 2018 and 2017.

5.B.15 Production, Exploration and Development

5.B.15.a Production

The Company has established a LOM estimate for Topia of 5.0 years as at December 31, 2018 for the purposes of depleting the current mineral inventory. This LOM estimate does not take into account any additional resources which may be discovered through recent and future exploration drilling. The Company re-evaluates its LOM estimate on an annual basis. The Company will commence reclamation and remediation at Topia shortly before the end of its mine life and carries a provision of $1.5 million to cover these costs. The provision is based on a closure cost estimate discounted to present value. If no further resources are defined, reclamation and remediation at Topia are anticipated to commence in 2024 and continue through to 2047. However, the timing and amount of reclamation and remediation is subject to future changes in the LOM estimate. For example, the addition of resources through recent and future exploration drilling could extend the LOM estimate.

¹ Milling operations at Topia were suspended for the duration of the first quarter of 2017. Tonnes milled and metal produced were incidental and related to the testing of plant upgrades. Consequently, cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC and ASIC per Ag eq oz, are not meaningful (“nm”) for this period.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 50

During 2017 and 2018, 1.1 million Ag eq oz and 1.5 million Ag eq oz, respectively, were produced at Topia. For 2019, the Company anticipates production to increase at Topia to approximately 1.9 million Ag eq oz after anticipated plant upgrades to increase capacity.

Production figures – Topia Mine

Year	Tonnage (Tonnes)2	Silver  (Oz)	Gold  (Oz)	Lead  (Tonnes)	Zinc  (Tonnes)
2006	22,445	208,004	406	627	742
2007	33,605	279,441	643	735	847
2008	35,318	366,199	812	876	1,074
2009	30,045	437,079	403	871	1,057
2010	38,281	515,101	597	1,092	1,358
2011	46,968	535,881	500	941	1,315
2012	56,098	555,710	573	962	1,477
2013	62,063	631,235	651	1,116	1,673
2014	67,387	667,636	555	1,154	1,675
2015	65,387	677,967	614	1,198	1,850
2016	55,836	574,031	612	1,033	1,496
2017	53,745	595,721	999	1,291	1,757
2018	73,605	761,107	1,087	1,958	2,361
Total	640,783	6,805,112	8,452	13,854	18,682

5.B.15.b Exploration and Development

Development plans for Topia during 2019 are limited to ongoing underground mine development and exploration drilling in the normal course of operations.

5.C.           TUCANO GOLD MINE

The Company is providing the following summary information relating to Beadell’s Tucano Gold Mine given that the acquisition of Beadell was completed shortly before the filing of this AIF. Additional information will be filed in connection with both Beadell and the Tucano Gold Mine in the Company’s business acquisition report to be filed on SEDAR under Canadian securities laws. Readers may also refer to Appendix E – Information Concerning Beadell Resources Limited of the Company’s information circular dated December 21, 2018 for additional information on Beadell and the Tucano Gold Mine, which information is not incorporated by reference into this AIF.

² Includes purchased ore tonnes milled. Excludes custom milled tonnes.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 51

5.C.1 Overview

The Tucano Gold Mine has exploration licences and mining concessions spread across approximately 2,500 square kilometres. Tucano consists of open pits which deliver ore to a 3.6 million tonnes per annum processing plant located at the Tucano mine (the “Tucano Processing Plant”).

Gold production for 2018 was 123,296 ounces an AISC of $1,073 per ounce and a total of 20,657,271 tonnes of material was moved.

In May 2017, Beadell announced the results of a feasibility study completed on a proposed upgrade to the Tucano Processing Plant. The feasibility study demonstrated the viability of upgrading the Tucano Processing Plant with an incremental estimate post tax present value of $127 million at a 5% discount rate, and estimated internal rate of return of 138% and a 14-month payback period. The estimated pre-production capital cost was $27.6 million.

The Tucano Plant Upgrade Project (the “Tucano Plant Upgrade Project”) encompasses four key areas including installation of a ball mill, pre-leach thickener, carbon-in-leach (“CIL”) tank and oxygen plant designed to increase sulphide ore processing capacity from approximately 30% to 80% of plant feed and increase recoveries from approximately 88% to 93%. The project is also expected to deliver the following benefits:

· the ability to process any mix of sulphide / oxide mill feed allowing the mine to be fully optimised based on maximizing grade;

· the ability to consistently process head grades in line with the reserve grade; and

· a stable gold production profile and more consistent cash flow.

On September 3, 2018, Beadell announced completion of the ball mill, approximately two weeks ahead of schedule as guided by new management appointed in July 2018.

Capital expenditure related to the Tucano Plant Upgrade Project as at December 31, 2018 was approximately R$96 million ($28 million) with approximately R$14 million ($4 million) remaining for a total capital expenditure of R$110 million ($32 million), using the feasibility study USD/R$ exchange rate of 3.40. This is in line with the update provided in Beadell’s June 2018 quarterly report, which highlighted an additional $2 million to $4 million increase from the original budget of $28 million.

Beadell increased power usage from the grid to 9MW and is seeking to increase the draw to a total of 12MW from the grid in 2019.

Beadell replaced MACA with U&M Mineração e Construção (“U&M”) in May 2018 as mining contractor in order to achieve lower cost per tonne, only pay on a variable cost basis and increase the productivity of material movement, thus improving the operating performance of Tucano.

Beadell announced on November 22, 2018 that U&M’s mining fleet was fully mobilized and commissioned, marking a full transition from the company’s previous mining contractor MACA. In addition, Beadell’s owner-operated fleet was placed on care and maintenance. Mining activities at Tucano from November 22, 2018 have been fully performed by U&M.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 52

Further, on November 22, 2018, Beadell announced that construction of the pre-leach thickener, CIL tank and oxygen plant that comprise the final stages of the Tucano Plant Upgrade Project were complete and fully commissioned. Beadell later announced that issues with the effectiveness of the oxygen supply were identified during the commissioning process. The subsequent decision was made to install a supplemental modular liquid oxygen supply system to increase oxygen in the leach tanks sufficient to achieve design recoveries for higher-grade ore with high pyrrhotite content.

5.C.2 Tucano Technical Report

The following information regarding the Tucano Gold Mine is derived from the NI 43-101 technical report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine dated October 31, 2018” (the “Tucano Technical Report”) on the Tucano Gold Mine. The Tucano Technical Report was prepared by AMC Mining Consultants (Canada) Ltd. (“AMC”) in accordance with the requirements of NI 43-101. The Tucano Technical Report was dated October 31, 2018 with an effective date of May 11, 2018. Due to the May 11, 2018 effective date, the information included in the Tucano Technical Report does not account for depletion, as reflected in the reserve and resource update issued by Beadell on December 4, 2018 that is dated as of June 30, 2018.

The following is a summary only of the information regarding the Tucano Gold Mine and is supported by the Tucano Technical Report. This summary is qualified by reference to the entire Tucano Technical Report. Readers seeking additional detailed information on the Tucano Technical Report are encouraged to review the entire Tucano Technical Report filed on Great Panther’s SEDAR profile at www.sedar.com on November 6, 2018. References to the “Property” in the discussion below are to the Tucano Gold Mine.

Capitalized terms used in the discussion below that are not defined have the meaning prescribed to them in the Tucano Technical Report and related exhibits.

Qualified Persons for the Tucano Technical Report

AMC was responsible for managing and preparing the Tucano Technical Report with inputs from the following Qualified Persons: Mr. G. Methven, P.Eng from AMC Mining Consultants (Canada) Ltd., Mr. B. Wolfe, MAIG from International Resource Solutions Pty Ltd., Mr. N. Spicer, C.Eng from Minesure Pty Ltd., Mr. R. Lacourt, SME - RM from LOM Consultants, Mr. J. Moreno, MIEAust, CPEng from SRK Consultants, Mr P. O’Bryan, MAusIMM (CP) from Peter O’Bryan and Associates, Mr. R. Walton, P.Eng from Ray Walton Consulting Inc., and Mr. M. Batelochi, MAusIMM (CP) from Soluções em Geologia e Mineração Ltda. Messrs. Wolfe and Batelochi are referred to as the “Tucano Qualified Persons” herein.

Asset Summary

The Tucano Gold Mine is currently the second largest gold producer in Brazil, producing around 145,000 ounces per year from several open pit mines in the northern state of Amapá, Brazil. Formerly a heap leaching operation, it ran from late 2005 until January 2009, producing approximately 292,000 ounces of gold from 8.8 Mt of ore. The property was put under care and maintenance due to problems treating the increasingly transitional material. Beadell acquired the property in 2010 and the process plant was upgraded with the addition of a SAG mill and CIL infrastructure, capable of treating sulphide ore. From November 2012 to June 30, 2017, 17.0 Mt at 1.34 g/t gold containing 735,294 ounces of gold were processed. Feed was made up of a blend of pit oxide ore, sulphide ore, spent ore, and historic stockpiles.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 53

Location

The Tucano Gold Mine is located in Amapá, the most north-eastern state of Brazil, approximately 15 km from the town of Serra do Navio. The mine is approximately 200 km from Macapá, the state capital, and is accessible by the Brazilian federal highway BR-210, or by chartered aircraft. The location of the Tucano Gold Mine is presented in the following map:

 

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 54

Ownership

Beadell owns a 100% interest in the Tucano Gold Mine through its wholly-owned subsidiary, Beadell Brasil Ltda. Beadell commenced commercial production of the Tucano Gold Project in 2011 following the commissioning of its SAG mill and CIL process plant.

Beadell has exploration rights or controls approximately 2,500 square kilometres of land around the Tucano Gold Mine, of which 3,971 hectares are in the mine permit area. Details of the tenements are included in the Tucano Technical Report.

Mineral Resources

Tucano contains an estimated Measured and Indicated Resource of 40.7 Mt at 1.71 g/t gold containing 2.24 Moz gold and an Inferred Resource of 16.4 Mt at 2.19 g/t gold containing 1.15 Moz gold, as summarized in the table below.

The Mineral Resources for Tucano have been estimated by Mr Brian Wolfe, Principal Resource Geologist of International Resource Solutions Pty Ltd, who takes responsibility for the Tap AB and Urucum estimates of the open pit multiple indicator kriging models and Mr Marcelo Batelochi, Principal Resource Geologist of Soluções em Geologia e Mineração Ltda, who takes responsibility for the remaining estimates.

The Mineral Resources were modelled by a combination of multiple indicator kriging and ordinary kriging.

For the purpose of reporting open pit Mineral Resources, the Tucano Qualified Persons tabulated the Mineral Resources within pit shells optimized using a gold price of $1,500 per ounce of gold for the Tap AB and Urucum deposits.

The Mineral Resources have been estimated in accordance with NI 43-101 and CIM 2014. Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves. A summary of the Mineral Resources as of June 30, 2017 are reported in the following table.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Summary of Mineral Resources as of June 30, 2017

Classification	Tonnes (kt)	Au grade (g/t)	Contained Au metal (koz)
Measured	18,448	1.41	835
Indicated	22,293	1.96	1,405
Measured and Indicated	40,742	1.71	2,240
Inferred	16,351	2.19	1,150

Notes:

(1) The June 2017 Tap AB UG Resource includes 173 kt at 4.68 g/t Au of Inferred Oxide in the Inferred Fresh Category.

(2) CIM 2014 were used for reporting the Mineral Resources.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 55

(3) Mr B. Wolfe, MAIG is the Qualified Person under NI 43-101 and takes responsibility for the Mineral Resource estimate for the Tap AB Open Pit and Urucum Open Pit Resource. Mr M. Batelochi, MAusImm (CP) is the Qualified Person under NI 43-101 and takes responsibility for all remaining resources.

(4) Tap AB and Urucum open pit Mineral Resources are constrained by an optimized pit shell at a gold price of $1,500 oz and using Measured, Indicated, and Inferred categories. The COG applied to the open pit resources is 0.5 g/t Au. The COG applied to ore stockpiles is 0.5 g.t with the exception of Marginal ore which has a COG of 0.3 g/t Au.

(5) The underground COG is 1.2 g/t Au.

(6) Drilling results are up to June 30, 2017 for the Tap AB Open Pit resource. For all other deposits, drilling results up to December 31, 2016, excluding the Urucum North Underground resource which has drilling results up to September 2015.

(7) Mineral Resources are inclusive of their derived Mineral Reserves.

(8) The numbers may not compute exactly due to rounding.

The Qualified Persons of the Tucano Technical Report are not aware of any known environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other similar factors that could materially affect the stated Mineral Resource estimates.

Mineral Reserves

Tucano Mineral Reserve estimates as of June 30, 2017 stated in the Tucano Technical Report are based on the Mineral Resources reported above and updated by Nigel Spicer of Minesure Pty Ltd. The Urucum underground Mineral Reserve was restated by AMC Consultants based on the PFS study completed in 2016 and in line with NI 43-101 guidelines. COG used for the underground Mineral Reserves at Urucum was 1.6 g/t gold. The key modifying parameters upon which the June 30, 2017 open pit Mineral Reserve estimates were made are summarized in the following table.

Reserve key modifying parameters for the optimized pit shells constraining the open pit Mineral Reserves
as at June 30, 2017

Applied modifying parameters	Urucum and Tap C	Tap AB
Optimized	March 2017	June 2017
Gold price	US$1,100/oz	US$1,150/oz
Royalty	2.00%	2.00%
Total process cost US$/t milled	10.71 - 14.34	9.98 – 14.1
Process Recovery	93 - 95%	93 – 95%
Mining + grade control cost US$/t milled	9.26	6.48
Mining dilution	15 – 20%	15 – 20%
Mining loss	0%	10%
Pit slopes	40 – 55 degrees	30 – 56 degrees
G&A cost US$/t milled	1.88	2.08
Mining in-situ Au COG	0.74 - 0.94 g/t	0.66 – 0.82 g/t

Based on the updated Measured and Indicated Mineral Resources for the various mineral deposits at Tucano, the total Proven and Probable Mineral Reserves using a gold price of $1,200 per ounce for the open pit reserves and $1,120 per ounce for the Urucum underground reserves, inclusive of stockpiles and as of June 30, 2017 is estimated to be 24.5 Mt at 1.79 g/t Au for 1.41 Moz of gold (see the following table). Open pit reserves for Tap AB and Urucum have been reported within pit designs optimized at a gold price of $1,150 per ounce and $1,100 per ounce, respectively. The Mineral Reserves have been estimated in accordance with NI 43-101 CIM 2014.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 56

Exchange rates of USD to R$ used for the estimation of Mineral Reserves are presented below.

Tucano gold operation – Mineral Reserves as at June 30, 2017

Brazil	COG	Proved Reserve			Probable Reserve			Total  Mineral Reserve
	Au (g/t)	Tonnes (’000)	Grade Au (g/t)	Ounces (’000)	Tonnes (’000)	Grade Au (g/t)	Ounces (’000)	Tonnes (’000)	Grade Au (g/t)	Ounces (’000)
Urucum Open Pit oxide	0.7	374	1.21	15	180	1.18	7	554	1.20	21
Urucum East Open Pit oxide	0.7	0	0.00	0	151	1.71	8	151	1.71	8
Tap AB Open Pit oxide	0.6	2,384	2.16	166	2,024	1.76	115	4,408	1.98	280
Tap C Open Pit oxide	0.6	362	1.08	13	191	0.99	6	553	1.05	19
Total oxide open pit		3,120	1.92	193	2,545	1.66	136	5,666	1.80	329
Urucum Open Pit primary	0.8	4,446	1.69	241	5,246	1.81	306	9,692	1.76	547
Urucum East Open Pit fresh	0.7	0	0.00	0	16	1.50	1	16	1.50	1
Tap AB Open Pit primary	0.8	1,274	2.00	82	1,188	1.72	66	2,462	1.86	147
Tap C Open Pit primary	0.8	229	1.31	10	387	1.44	18	615	1.39	28
Total primary open pit		5,949	1.74	333	6,836	1.77	390	12,785	1.76	723
Urucum Open Pit total		4,820	1.65	256	5,425	1.79	312	10,245	1.72	568
Urucum East Open Pit total		0	0	0	167	1.69	9	167	1.69	9
Tap AB Open Pit total		3,658	2.10	247	3,212	1.75	181	6,870	1.94	428
Tap C Open Pit total		591	1.17	22	577	1.29	24	1,168	1.23	46
Total oxide and primary open pit		9,069	1.80	525	9,381	1.74	526	18,450	1.77	1,051
Open pit stockpile	0.5	1,985	0.66	42	0	0.00	0	1,985	0.66	42
Spent ore stockpile	0.5	1,311	0.61	26	0	0.00	0	1,311	0.61	26
ROM expansion stockpile	0.5	345	0.80	9	0	0.00	0	345	0.80	9
Total stockpiles	0.5	3,642	0.66	77	0	0.00	0	3,642	0.66	77
Total Tucano Open Pit & stockpiles		12,711	1.47	603	9,381	1.74	526	22,092	1.59	1,128
Urucum Underground primary		0	0.00	0	2,378	3.64	278	2,378	3.64	278
Total Underground primary		0	0.00	0	2,378	3.64	278	2,378	3.64	278
Grand total Tucano		12,711	1.47	603	11,759	2.12	804	24,470	1.79	1,406

Notes:

(1) 2018 Open Pit Mineral Reserves are stated as of June 30, 2017 based on the COGs as detailed in Table 1.3 above. Mineral Reserves are reported within open pit designs based on pit optimized shells using the following optimization COGs; Tap AB Oxide: 0.66 g/t Au, Tap AB Fresh: 0.82 g/t, Urucum Oxide 0.74 g/t Au, Urucum Fresh 0.94 g/t Au, Tap C Oxide 0.66 g/t Au, Tap C Fresh 0.86 g/t Au, Urucum East Oxide 0.74 g/t Au, and Urucum East Fresh 0.94 g/t Au. The COG is based on total costs per pit (inclusive of processing, G&A, tech services and haulage, exclusive of mining costs) and averages $12.8 for oxide and $16.8 for fresh. Metallurgical recoveries are 95% for oxide and 93% for sulphides. The gold price used for the open pit optimizations was $1,150/oz for Tap AB and $1,100 for Tap C and Urucum. The gold price used to calculate the COGs for the reserves reported within the optimized pit designs was $1,200 per ounce. An exchange rate of USD:R$ of 1:3.2 for Tap AB and 1:3.4 for Urucum was used. Open Pit Mining Recoveries of 100% for oxide and fresh were used at Urucum, 90% for oxide and fresh at Tap C and Tap AB and 90% oxide, 100% fresh at Urucum East. Dilution used for all pits was 15% for oxide and 20% for fresh.

(2) 2018 Underground Mineral Reserves are stated as of June 30, 2017 and based on a COG of 1.6 g/t Au. The COG is based on an incremental mining and processing cost of $50/t, metallurgical recovery of 90%, a gold price of $1,120/oz and an exchange rate of USD:R$ of 1:3.8.

(3) A 0.5 m dilution skin was assumed for the HW and FW side of the underground production stopes making the total dilution 1.0 m in width. Ore losses were assumed to be 8% for the Benching method, 14% for the Up-Hole retreat method, and ore losses for the recovery of the sill pillars were assumed to be 35%.

(4) The JORC reserve released on December 19, 2017 to the ASX (“Interim Mineral Resource and Ore Reserve Update as at June 30, 2017”) stated the total Urucum Underground Reserve was 2,972 kt at 3.61 g/t Au for 345 koz Au. This reserve was reported by AMC inclusive of Inferred resource blocks captured inside the stope designs that were optimized on Measured and Indicated Resources in the 2016 PFS. The Inferred Mineral Resources falling within the stope designs was removed from the calculations and reporting of the NI 43-101 compliant Urucum Underground Reserves by AMC Vancouver in 2018 and has been quoted in the Table 1.3 above.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 57

Mining

Tucano commenced operations in 2005 and continued as a heap leach operation until 2009 when it was placed on care and maintenance following processing problems caused by increasingly transitional ore. In 2010 Beadell acquired the mine and commenced construction of a CIL plant to add onto the existing process infrastructure. Mining and stockpiling of ore commenced in 2011 and the CIL plant was commissioned in November 2012. From November 2012 until June 30, 2017, 17.0 Mt at 1.34 g/t gold containing 735,294 oz gold had been processed, made up of a blend of pit oxide ore, sulphide ore, spent ore, and historic low-grade stockpiles. Tucano uses a conventional open pit selective mining method, employing U&M as its principal mining contractor as of November 22, 2018.

Metallurgy and process plant

The Tucano Processing Plant uses a conventional CIL gold recovery process. The comminution circuit of the process plant comprises a primary jaw crusher, followed by a SAG mill, ball mill and thickener. The milled product is processed in the CIL circuit where gold contained in the ore is treated with oxygen, leached and adsorbed onto activated carbon. The CIL tails slurry undergoes cyanide destruction prior to disposal in the tailings dam. Loaded carbon is rinsed prior to elution. A Pressure Zadra elution circuit is used to remove the gold from the loaded carbon, after which the rich solution flows through a bank of two electrowinning cells where the gold in the solution is deposited on the cathodes within the cells.

Following elution, the carbon is re-generated in the carbon re-generation kiln prior to being returned to the CIL circuit. The sludge containing the gold (which is weakly adhered to the cathodes) is dislodged with a high-pressure water spray and the sludge is dried in a drying oven before being direct smelted with fluxes in a furnace. The doré metal and slag separate in the furnace, the slag is poured off to slag pots and the doré metal is poured into bars. Doré bars are cleaned, weighed, stamped, sampled, and then stored in a safe, contained within a strong room, while awaiting dispatch.

Prior to completion of the plant upgrade, the plant could process up to 3.6 Mt per annum at a blend ratio of 80:20, oxide:sulphide. Increasing sulphide feed in future years meant that this blend ratio was not sustainable and in 2017 work commenced to expand the CIL plant to include a 6 MW ball mill, extra CIL tank, oxygen plant, and pre-leach thickener. The aim of this was to accommodate the planned 20:80, oxide:sulphide ratio planned for future years as well as maintain a consistent 75 um grind size. With the addition of the ball mill, thickner, extra CIL tank and oxygen plant, recoveries are expected to increase from 88% to 93% once additional liquid oxygen is applied to the leach tanks late in the first quarter of 2019.

Infrastructure

The site is connected to the national electrical grid by a 69 kV, 20 MVA power line via Companhia de Eletricidade do Amapá, the local supply authority. Power is also provided by an independent 11 MW continuous rated Aggreko diesel-powered generation system. Water is provided from recycled process water and water storage dams. The mine currently employs a total of 1,202 persons, of whom 680 are Beadell Brasil Ltda. employees and 522 contractors. Approximately 99% are Brazilian nationals with the majority of the workforce from local towns in proximity to the mine. Accommodations for senior and junior staff members are provided by a camp located two km from the plant which is capable of housing 85 persons. The plant area contains major infrastructure including, sample preparation and assay laboratories, TSF, power distribution infrastructure, and plant consumables storage. The main administration area contains major heavy machinery workshops, administration and technical services offices, stores warehouse, core yard, mess facility, and medical centre.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 58

Market studies and contracts

Gold output from Tucano is in the form of doré bars which are shipped to Sao Paulo for refining by Umicore, the contract refiner. A number of operational duties have been contracted out to suppliers, and U&M as the mining contractor. SGS Geosol operates the offsite certified laboratory in Belo Horizonte, Minas Gerais and Geosol operate RC and diamond drilling rigs for grade control and resource drilling. The various contracts were awarded following a competitive bidding process; prices are within the industry range and comparable to other operations in Brazil.

Environmental and social

In 2011 SRK Consultores do Brasil Ltda produced an Environmental Control Plan (“PCA”) to present changes implemented to the project’s environmental controls as a condition for the renewal of the Operating Licence issued by the State Secretariat of Environment, Amapá. This followed a period of care and maintenance from 2009 until Beadell acquired the mine in 2010. The PCA reviewed changes to the proposed process plant configuration (from heap leach to CIL) and ways of minimizing the environmental impact of the plant upgrade. The PCA also covered the environmental aspects of mining and plans to monitor and manage these as well as implementing various programs for the local community.

Capital and operating costs

Major capital expenditures for 2018 included $16.4 million for the process plant upgrade (which has now been completed), $2.7 million for the TSF, $1.5 million for the powerline upgrade, and $0.7 million for clearing and hydro seeding. Capitalized stripping or miscellaneous minor capital requirements have not been reported. In 2017, cash operating costs for Tucano were $1,100 per ounce of gold sold, which includes all mining, treatment, inventory adjustments and site general, and administrative costs. It excludes depreciation, amortization, sustaining capital, and corporate general and administration costs.

Conclusions

The Tucano Technical Report concluded that Tucano is a successfully operating gold mine that started commercial production by Beadell in January 2011 following a period of care and maintenance by the former owners, New Gold (operating as Mineração Pedra Branca do Amapari). Beadell added a CIL circuit to the existing heap leach plant and commissioned it in November 2012. The operation is projected to continue until 2023 based on currently available open pit Mineral Reserves. The exploration database for Tucano is reliable for the purpose of resource estimation. The Mineral Resources and Mineral Reserves have been updated to June 30, 2017.

Based on the latest Technical Report, from the end of 2017 through the life of mine, a total of 23.3 Mt of ore will be mined at an overall strip ratio of 5.6 to 1. Grade control reconciliation has confirmed the mineral resources and Mineral Reserves as previously stated for Tucano. The Tucano Technical Report concluded that the results of this update to the Mineral Resource and Mineral Reserve evaluation confirm the continued economic viability of exploiting Tucano. The current open pit LOM production schedule 2018 to 2023 considers 23.3 Mt of ore at an average grade of 1.43 g/t gold containing a total of 1.07 Moz of gold. In 2017, Tucano produced 129,764 oz gold at an AISC of $1,180 per ounce, which includes all mining, treatment, general and administrative costs, sustaining capital, and royalties which are incurred at the mine site. The mine level AISC costs exclude depreciation, amortization, and corporate general and administrative costs.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 59

Recommendations

The Tucano Technical Report recommended that near mine exploration and resource definition drilling be completed on key targets within and near the Urucum pit. This could have the potential to add low strip, near surface ounces to the reserves. Continued regional exploration on the established ranked list of targets is recommended to discover and define significant new gold deposits outside the mine corridor. Regional exploration work will involve stream and soil geochemistry with follow up diamond and RC drilling for the advanced projects. Total annual budget for Near Mine Exploration, Resource Confirmation, and Regional Exploration going forward will be in the range of $6.0 million.

6. ADVANCED-STAGE PROJECTS

6.A. CORICANCHA MINE COMPLEX ("CORICANCHA")

6.A.1 Coricancha Mine Complex

Coricancha is a polymetallic mine that includes a 600 tonne per day flotation and gold BIOX® bio-leach plant along with supporting mining infrastructure. Coricancha has been on care and maintenance since August 2013 when it was closed due to falling commodity prices. The Coricancha property comprises more than 3,700 hectares in the prolific Central Polymetallic Belt and production at the mine dates back to 1906. Gold-silver-lead-zinc-copper mineralization (approximately 80% gold-silver by value) occurs as massive sulphide veins that have been mined underground by cut and fill methods.

The Company’s Peruvian subsidiary, Great Panther Silver Peru SAC (“GP Peru”), completed the acquisition (the “Acquisition”) of all of the issued and outstanding shares of Nyrstar Coricancha SA from Nyrstar International B.V. and Nyrstar Netherlands (Holdings) B.V., as sellers (together “Nyrstar”) on June 30, 2017 (the “Completion”). Nyrstar Coricancha SA was the 100% owner of the Coricancha gold-silver-lead-zinc-copper mine and mill complex in Peru at Completion.

The Acquisition was completed pursuant to a Share Purchase Agreement (the “SPA”) originally dated December 19, 2016, among the Company, GP Peru, Nyrstar and Nyrstar Coricancha SA (the “Original SPA”). The SPA was amended and restated on June 9, 2017 (the “Amended and Restated SPA”) and further amended by agreement dated June 28, 2017 (the “Second Amendment Agreement”).

The legal name of Nyrstar Coricancha SA was changed to Great Panther Coricancha SA subsequent to the Acquisition. In the foregoing, Nyrstar Coricancha SA is also referred to as Great Panther Coricancha SA.

6.A.1.a The SPA

The parties entered into the Amended and Restated SPA on June 9, 2017 in order to incorporate certain amendments to facilitate the reorganization of Nyrstar’s investments in Peru in connection with its planned divestitures. The amendments in the Amended and Restated SPA did not materially impact the terms of the Acquisition under the Original SPA. The parties entered into the Second Amendment Agreement effective June 28, 2017 in order to defer payment of the initial $0.1 million portion of the Purchase Price (the “Completion Price”) from the closing date to a date no later than five business days following the receipt of a final cost certificate from the Peruvian tax authority (“SUNAT”) that related to the cost base of Nyrstar’s shares in Great Panther Coricancha SA (the “Cost Certificate”). The Second Amendment Agreement also included corresponding agreements relating to certain tax matters.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 60

A copy of the Original SPA was filed on SEDAR on January 13, 2017. A copy of each of the Amended and Restated Share Purchase Agreement and the Second Amendment Agreement were filed on SEDAR on July 10, 2017. Readers are advised to refer to the filed agreements for a complete description of the terms of the Acquisition. The forms of the Mine Closure Agreement, Earn-Out Agreement and Nyrstar Parent Guarantee, each as discussed below, are each included as exhibits to the Original SPA and Amended and Restated SPA. The summary of material terms of each of the agreements provided in this AIF is qualified by reference to the entirety of the SPA.

Capitalized terms used in the discussion below that are not defined have the meaning prescribed to them in the SPA and related exhibits.

6.A.1.b Closing of the Acquisition

The Acquisition was completed by Nyrstar transferring all of the issued and outstanding shares of Nyrstar Coricancha SA to GP Peru. Concurrently, the following agreements were executed in accordance with the SPA and came into effect on Completion:

· An earn-out agreement between the Company, GP Peru, Nyrstar and Nyrstar Coricancha SA, in the form attached to the SPA (the “Earn-Out Agreement”);

· A mine closure agreement between Nyrstar and Nyrstar Coricancha SA, in the form attached to the SPA (the “Mine Closure Agreement”); and

· A guarantee of Nyrstar NV, the ultimate parent of Nyrstar, in favour of GP Peru and the Company, in the form attached to the SPA (the “Nyrstar Parent Guarantee”).

Nyrstar and the Company also executed a transition services agreement on closing in order to facilitate the transition of management and ownership of Nyrstar Coricancha SA to the Company and GP Peru. The transition services agreement was in effect for several months following Completion, but was not in effect as at December 31, 2018.

6.A.1.c Acquisition Consideration

Under the terms of the SPA, GP Peru acquired Nyrstar Coricancha SA from Nyrstar for a purchase price (the “Purchase Price”) comprising:

· the Completion Price of $0.1 million, which was paid subsequent to Completion in September 2017; and

· up to $10.0 million in earn-out consideration to be paid under the Earn-Out Agreement, as described further below.

6.A.1.d Earn-Out Agreement

Under the Earn-Out Agreement, Great Panther Coricancha SA will pay Earn-Out Consideration to Nyrstar that will equal 15% of the free cash flow generated by Coricancha during the five-year period after which Coricancha is cumulative free cash flow positive from Completion, to a maximum of $10.0 million. Specific material terms of the Earn-Out Agreement include the following:

· the Earn-Out Consideration will be determined as being equal to 15% of the Free Cash Flow of the Company during the Earn-Out Period, calculated and paid at the end of each relevant fiscal year of the Company during the Earn-Out Period;

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 61

· Free Cash Flow will be determined as the net income or loss of Coricancha, with adjustment for certain amounts specified in the Earn-Out Agreement related to depreciation and amortization, non-cash expenses and losses, deferred income tax and sustaining capital expenditures, each as determined in accordance with IFRS;

· the Earn-Out Period will begin on the Trigger Date (as defined below) and will expire on the earlier of:

· the date that is five years from the Trigger Date; and

· the date on which the Cumulative Free Cash Flow generated from Coricancha since the Trigger Date has equaled an amount such that the Earn-Out Consideration to be paid by the Company to Nyrstar under the Earn-Out Agreement will equal $10.0 million;

· the Trigger Date will be the date on which the aggregate cumulative Free Cash Flow generated by Coricancha from the Date of Commencement of Commercial Production has equaled or exceeded the amount of the Start-Up Expenditures, as defined in the Earn-Out Agreement, incurred by the Company from the date of Completion of the Acquisition to the Date of Commencement of Commercial Production; and

· the Date of Commencement of Commercial Production will be the date after Completion which is the first day of the first three month period (whether calendar months or otherwise) during which period the average rate of production at Coricancha is at least 400 tonnes per day (with production calculated on the basis of mined material processed through the plant).

The Company will guarantee to Nyrstar the payment by Great Panther Coricancha SA of the Earn-Out Consideration under the Earn-Out Agreement. To date, no consideration has been paid under the terms of the Earn-Out Agreement.

6.A.1.e Reclamation Agreements

The SPA includes agreements between the Company, GP Peru, Great Panther Coricancha SA and Nyrstar regarding legacy environmental matters relating to Coricancha. These agreements became effective on Completion and relate to the reclamation of tailings facilities at Coricancha and the funding of the corresponding reclamation costs. These terms include the following material provisions:

· GP Peru will cause Great Panther Coricancha SA to reclaim the Cancha 1 and Cancha 2 TSF (being part of Coricancha), in accordance with the mine closure plan approved by Ministerio de Energia y Minas of Peru (“MEM”) (the “Coricancha Mine Closure Plan”);

· GP Peru will cause Great Panther Coricancha SA to reclaim the Triana TSF (being part of Coricancha), in accordance with the mine tailings abandonment plan approved by MEM (the “Triana Tailings Abandonment Plan”);

· Nyrstar will fund the payment of the Reclamation Costs associated with undertaking the reclamation work required to complete the Coricancha Mine Closure Plan and the Triana Tailings Abandonment Plan, to a maximum of $20 million; and

· Nyrstar will advance funds to Great Panther Coricancha SA to fund the Reclamation Costs on a quarterly basis in accordance with agreed upon mechanics set forth in the SPA.

In addition, Nyrstar has agreed to settle all outstanding fines or sanctions relating to Coricancha, to a maximum of $4.0 million (subject to certain exclusions to which the cap will not apply).

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 62

To date, the Company has completed some of the reclamation work under the Coricancha Mine Closure Plan and the Triana Tailings Abandonment Plan, and Nyrstar has funded these works in accordance with the SPA.

6.A.1.f Mine Closure Agreement

The Mine Closure Agreement relates to the mine closure bond required to be maintained by Great Panther Coricancha SA for Coricancha (the “Mine Closure Bond”) in order to comply with the mine closure bond requirements imposed by MEM. Under the Mine Closure Agreement, Nyrstar has agreed to maintain the required Mine Closure Bond up to an amount of $9.7 million for a three year period following Completion (the “Mine Closure Period”). During this Mine Closure Period, Great Panther Coricancha SA will be responsible for any portion of the Mine Closure Bond required by MEM that is in excess of this $9.7 million amount. In accordance with these obligations, Nyrstar is responsible, at its expense, for providing security for the initial $9.7 million amount of the Mine Closure Bond and Great Panther Coricancha SA is responsible, at its expense, for providing security for any excess amount.

In the event that Great Panther Coricancha SA makes a final, irrevocable decision to permanently close Coricancha during the Mine Closure Period, the following will apply:

· Nyrstar will pay to Great Panther Coricancha SA the amount of $9.7 million in full and final release of its obligations under the Mine Closure Bond (the “Closing Contribution”);

· Great Panther Coricancha SA will take all steps necessary to establish a new Mine Closure Bond in the amount of $9.7 million;

· Nyrstar will terminate its original Mine Closure Bond in the amount of $9.7 million;

· Great Panther Coricancha SA will proceed with the mine closure plan for Coricancha using the Closing Contribution paid to Coricancha by Nyrstar;

· if the costs of closing Coricancha are less than the Closing Contribution paid by Nyrstar, Great Panther Coricancha SA will return to Nyrstar the difference; and

· if the costs of closing Coricancha are greater than the Closing Contribution paid by Nyrstar, Coricancha will be responsible for any excess closure costs.

In the event that Great Panther Coricancha SA does not make a final, irrevocable decision to permanently close Coricancha during the Mine Closure Period, Great Panther Coricancha SA will make arrangements for the release of the obligations of Nyrstar under its portion of the Mine Closure Bond, which arrangements will be in effect upon expiry of the Mine Closure Period, and Nyrstar will then have no further responsibility or liability in connection with the Mine Closure Bond.

In December 2017, the Mine Closure Bond requirement was increased by $1.2 million. This additional amount was funded by Great Panther Coricancha SA at that time in accordance with the Mine Closure Agreement.

6.A.1.g Parent Company Guarantee of Nyrstar NV

Under the Nyrstar Parent Guarantee, Nyrstar NV has guaranteed to the Company, GP Peru and Great Panther Coricancha SA, as beneficiaries, the punctual payment and performance by Nyrstar of the obligations of Nyrstar under:

· Clause 2 of the Mine Closure Agreement relating to the obligations of Nyrstar to post the Mine Closure Bond and advance the Closure Contribution, in each case to a maximum of $9.7 million;

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 63

· Clause 5(h) of the SPA relating to tax indemnification matters; and

· Clause 6 of the SPA relating to the obligations of Nyrstar to fund the Reclamation Costs for Coricancha.

The obligations of Nyrstar NV are limited to the following maximum guaranteed amounts:

· $9.7 million with respect to the guaranteed obligations under clause 2 of the Mine Closure Agreement; and

· $20.0 million with respect to the guaranteed obligations under clause 6 of the SPA relating to Reclamation Costs.

The guaranteed obligations with respect to the tax indemnification under clause 5(h) of the SPA will not be subject to the foregoing maximum guaranteed amounts and will be subject to the indemnification provisions of the SPA with respect to these obligations.

6.A.2 Current Technical Report

The information on Coricancha in this section of the AIF is based on the technical report entitled “Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex”, dated July 13, 2018. The technical report was submitted by Golder Associates Inc. as Report Assembler of the work prepared by or under the supervision of the following Qualified Persons named as authors: Ronald Turner, MAusIMM CP(Geo); Daniel Saint Don, P.Eng.; and Jeffrey Woods, P.E. (collectively, the “Coricancha Qualified Persons”). The effective date of the report is July 13, 2018.

6.A.3 Project Description, Location and Access

Coricancha is located in the central Andes of Perú in the District of San Mateo, Huarochirí Province, Department of Lima. The mine has been on care and maintenance since August 2013.

The plant and main site office are located adjacent to the Central Highway, 90km east of the city of Lima, next to the Rímac River in an area known as Tamboraque, and adjacent to the confluence of the Rímac River and its tributary, the Aruri River. The plant is located at 3,000 masl, and the mine is located between 3,140 masl and 3,980 masl.

The mine includes 127 mining concessions, 1 mining transport concession, and 1 processing concession. All mining concessions are for metallic substances.

By agreement entered into with Biomin Technologies SA (“Biomin”, now owned by Outotec) dated February 5, 1995, Coricancha was granted the right to use BIOX® technology. There are no other agreements or encumbrances known that would affect the current mine.

A 1% NSR royalty in favour of Global Resource Fund is payable on production from most of the mining licences, and a royalty of $1/ounce exists for gold processed using BIOX® technology.

Legacy tailings are stored at Cancha 1 and 2¹ at the Coricancha site – Tamboraque, and at Chinchan Tailings Storage – Phase I.

¹ Cancha 1 and 2 may also have been referred to as Deposito 1 and 2 in past disclosures regarding Coricancha by other owners.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 64

The property is subject to the following environmental liabilities:

· Coricancha has an approved mining closure plan for mining and processing components, including tailings storage areas Cancha 1 and 2. The closure plan was updated three times to (i) include Chinchan Tailing Storages Phase I and II, (ii) modify the tailings removal of Cancha 1 and 2 and transfer to Chinchan Tailings Storage, and (iii) modify the waste rock dump closure schedule. Coricancha, in the third Closure Plan Amendment (2014), has assumed a total commitment of $10.9 million of closure warranty on behalf of MEM. A process is underway to modify the closure plan as it relates to the handling of some of the remaining tailings. Of this $10.9 million commitment, the previous owner (Nyrstar) has funded $9.7 million while the Company has funded the remaining $1.2 million.

· Coricancha has declared 14 surface waste rock storage sites in its 2010 mining closure plan. Five of them have been reported to have potential economic value and will be assessed as part of future studies to determine if the material will be processed at Coricancha. In addition, there are nine waste dumps that do not have potential for economic value. Nevertheless, the 1996 Estudio Impacto Ambiental declared that all waste rock from mine activities would be stored in the underground mine upon final closure. The Company is reviewing alternate solutions to address this issue.

· Other closure liabilities including the plant, roads, infrastructure, legacy waste dumps and tailings storage, mine openings, and mine water management exist. Some of these require further definition and permitting updates.

The estimated present value of reclamation and remediation costs associated with the future retirement of Coricancha is recognized as a provision on the Company’s Statement of Financial Position. This value comprises the provision associated with the mine, the plant, and tailings storage facilities of Coricancha.

A number of permits are in place. The following permits would be necessary if the Company decides to advance Coricancha into production:

· The Chinchan Tailing Storage areas have limited capacity. The Company must develop a balance between the actual allowed and available capacity of Chinchan North and South Tailing Storages and the amount of tailings that must be transferred from Cancha 1 and 2, including any future tailings generated from future mining/processing.

· Any exploration activities require an Environmental Certificate ("EC"). The Company can request a Declaracion Impacto Ambiental ("DIA") or Estudio Impacto Ambiental semi detailed ("EIA-sd") depending on the extent of work and the potential environmental impact. A DIA could be approved in seven working days, if the permits are for 20 sites or less and if no archeological site is encountered, while an EIA-sd can take an additional 55 working days.

· A future mining plan would likely require new waste dump facilities, which themselves would need to be permitted some time during the life of the operations. These details are presently under study.

6.A.4 History

Coricancha is part of the Viso-Aruri mining district located in the San Mateo District, Department of Lima, Province of Huarochirí, in the central Andes of Peru. Coricancha has been exploited almost continuously since the colonial times. The historical Coricancha mine production for the 60 years prior to 1996 is reported to have ranged from 2,600 to 5,000 tpm.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 65

In late 1995, Coricancha underwent a considerable expansion of operations from 200 tpd to 600 tpd and the installation of a modern BIOX® plant. After completion of the expansion in 1997, the reported monthly production increased slightly over historic levels, but was not sustainable. The mine was shut down in September 2000 as the owner of Coricancha for the past 45 years, Minera Lizandro Proaño, was forced into bankruptcy due to low metal prices, labour shortages, and operational difficulties in the mine and concentrator.

At the beginning of 2001, Wiese Sudameris Leasing SA, a Peruvian bank which was the major secured creditor, took control of the assets and properties from the bankrupt Minera Lizandro Proaño. Later that year, it entered into an agreement with Peruvian contractor Larizbeascoa & Zapata SAC, to redesign the Coricancha operation.

After the mine reopened in 2002, the monthly production tonnage increased dramatically to 12,500 tpm. The monthly production then decreased to just over 8,000 tpm during the seven months of operation before being shut down in October 2002 by the government due to environmental issues associated with the Mayoc TSF. In November 2002, the Coricancha mine and mill were shut down and put on care and maintenance. A water treatment plant to neutralize the mine water has been in continuous operation.

Gold Hawk Resources Inc. (“Gold Hawk”) acquired Coricancha in early 2007 and commenced development work, then restarted operations in June of 2007 at a production rate of 600 tpd until operations were suspended again in May of 2008 due to surface ground movement observed on the natural hillside above the nearby TSF.

Nyrstar acquired Coricancha in November 2009, and recommenced operations in late 2010 following construction of a new TSF at the Chinchan location and the addition of a copper circuit. Operations at the plant were temporarily reduced to 30% of capacity in the first half of 2011, due to an increased moisture level and compaction problem at the newly commissioned Chinchan TSF resulting from heavy rainfall. During 2012, milling operations temporarily ceased due to concerns about the storage and planned movement of legacy tailings to the new Chinchan facility. At the end of 2012, as part of cost cutting measures, Nyrstar ceased mining mineralized material from Coricancha’s underground deposits and focused on treating historical tailings before moving the waste material to the tailings pond. In August 2013, operations were halted due to the sustained lower precious metal prices, and Coricancha was placed on care and maintenance.

Exploration by the previous owners was very limited and focused on underground drifting and raising on vein structures. A limited, short-hole diamond drilling program was conducted in 2002.

The first formal documented exploration program was conducted by Nyrstar in 2010 and consisted of field mapping, ground magnetic and induced polarization surveys and diamond drilling.

There have been seven independent Mineral Resource and Mineral Reserve estimates prepared for the Coricancha property since 1995. Previous resource estimates (2007, 2009, 2011, and 2013) were prepared using industry standard best practices for exploration and Mineral Resource estimation (i.e., CIM 2003 and CIM 2014) and reported in accordance with internationally recognized guidelines for disclosure of Mineral Resources and Mineral Reserves (i.e. NI 43-101, or JORC). All previous estimates are considered as historical.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 66

6.A.5 Geological Setting, Mineralization and Deposit Types

The regional geology of the Viso-Aruri mining district comprises a package of andesitic volcanic rocks and local basal sedimentary units intruded by monzonite stocks. The Jumasha Formation is found at the base of the Viso-Aruri volcanic sequence and is characterized by tightly folded beds of grey limestone. The limestone outcrops in the Rímac River valley, near the town of San Miguel de Viso.

The approximately 1,500 m thick Rímac Formation overlies the Jumasha limestones and consists of Tertiary-age andesitic volcanics, characterized by alternating layers of massive and porphyritic, grey to greenish-grey-purple andesite. The volcanic beds are approximately 10 m to 40 m thick and are roughly sub-horizontal, dipping slightly to the SW at 15°.

There are two occurrences of intrusive rocks in the area which are thought to have been the source of the polymetallic mineralization, although this has not been confirmed. The first is a small, altered, intrusive stock that has been mapped near the village of Viso on the south side of the mountain (Coricancha is on the north side). The other occurrence consists of the NE-NNE trending, sub-vertical intrusive dikes cutting the volcanic rocks.

The area has been exposed to tremendous structural compression, which has produced a strong regional scale fracturing pattern and allowed the emplacement of the polymetallic mineralization within quartz (Qtz) sulphide veins as fracture filling. Some of the identified features include the NW-SE Pariachaca-Matucana fault, the NS and NNE trending San Pablo and Huamuyo faults, and the NNE-SSE mineralized fracture zones.

The Coricancha property is almost entirely underlain by the Rímac Formation andesitic volcanics. The base of the sequence consists of brecciated volcanics overlain by andesitic flows, agglomerate and tuff towards the top of the Cerro Huamanjune at approximately 4,500 masl elevation.

Mineralization at Coricancha is that of an anastomosing polymetallic quartz vein system where most of the secondary and tertiary veins branch off either from the main vein or the secondary veins, respectively. The overall system trends towards the NE at approximately 15°, and the veins are primarily sub-vertical to steeply NW dipping. It is thought that the anastomosed vein system is part of a larger tectonic shear zone with associated secondary and tertiary tensional veins.

The three main veins on the Coricancha property include the Wellington, Constancia, and Animas veins. These veins define three structurally dislocated blocks from which a series of secondary and tertiary tensional veins split off. The veins are extensive and are known to extend over 4 km along strike and more than 1.5 km down dip.

Typically, the veins show Qtz-clay-pyrite argillic alteration, which extends up to 2.0 m into the footwall and hanging wall of the veins. The alteration does not contain any significant economic mineralization of note.

Coricancha is a polymetallic hydrothermal, brittle low sulphidation deposit hosted in the andesitic rocks of the Rímac Formation. The veins exhibit pinch-swell type behavior typical of hydrothermal systems found within compressional and extensional structural environments. Vein widths reach upwards of 2.0 m, with a mean width of approximately 0.6 m. The veins are known to split into two or more branches separated by waste rock materials.

The mineralization observed at Coricancha typically comprises the following: Pyrite (iron sulphide); Sphalerite (Zn sulphide); Galena (Pb sulphide); Chalcopyrite (Cu-Fe sulphide); Arsenopyrite (Fe-arsenic sulphide); Tennatite (Cu-As sulfosalt); Tetrahedrite (Cu-Fe-Zn-Ag antimony sulfosalt); Native Au; Native Ag; and Quartz.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 67

6.A.6 Exploration

Prior to Nyrstar’s acquisition of Coricancha, exploration was primarily conducted by mining of veins, horizontal tunnels and vertical raises, but no systematic formal exploration activities were completed. The first formal documented exploration program was conducted by Nyrstar in 2010 and consisted of field mapping, ground magnetic and induced polarization (IP) surveys and diamond drilling.

6.A.7 Drilling

Prior to 2010 and Nyrstar’s acquisition of Coricancha, no systematic drilling was performed on-site. However, some historical drilling was completed, primarily as short holes. Unfortunately, limited or no records exist related to this drilling. None of the pre-2010 drilling has been included in the geological database or geological model due to the lack of information and inability to confirm this data.

Since 2010, several drilling programs have been completed with the primary focus of verifying the lateral and depth continuity of the main veins including, Wellington, Constancia, Animas and Colquipallana. Nyrstar conducted three independent drilling campaigns in 2010, 2011 and 2013. Drilling programs were also completed in 2015 and 2016 in conjunction with Great Panther. From 2010 to 2016, a total of 83 diamond drill holes, totaling 28,197 m of NQ sized core (47.6 millimetre core diameter) have been drilled within the Coricancha property boundaries. Drill holes were either drilled from surface or underground depending on the target and accessibility.

The results of the drilling programs at Coricancha verify the continuity of the vein system, both laterally and at-depth. The mineralization is shown to extend beyond the previously known limits and has opened up the targets both along strike and at depth.

6.A.8 Sampling, Analysis and Data Verification

The Coricancha core facility is a secure (gated and guarded) facility, with staff and security onsite. The core logging area was arranged to provide areas for logging, core splitting and sampling. Core is stored on covered core racks whilst awaiting logging and sampling; once sampled, the remaining unsampled core was carefully reorganized in the core box and the lids were returned to the boxes before they were transported to the secure core storage facility.

Drill core sampling is conducted in such a manner to ensure that all mineralized intervals are captured and sent to the lab for analysis. Sample intervals are defined such that they do not cross lithological boundaries, with a minimum sample length of 0.35 m and a maximum sample length of 1.5 m.

Core cutting and sample packaging was performed by the Company’s core technicians under the supervision of its geologists. The sealed plastic sample bags were placed in large neoprene rice bags, sealed using zip ties, and labelled clearly to identify the final shipping destination. The full rice bags were stored in a secured and closed room within the core logging facility until a shipment batch was ready for transport. Only designated personnel have access to the storage room. Only employees of the geology area are involved with the sample preparation and sample delivery at the laboratory.

Nyrstar and Great Panther implemented a comprehensive analytical QA/QC program for the drilling and sampling programs, which included the insertion of blind certified reference material (CRM) standards, duplicates and blanks to evaluate analytical precision, accuracy and potential contamination during the sample preparation and analytical process.

Underground chip samples (channel) are collected for grade control and for Mineral Resource estimation purposes. The sample length is defined according to the lithological breaks and vein continuity. Samples are collected from a 5 centimetre (cm) deep by 20 cm wide channel cut perpendicular to the vein direction. The material is typically chipped out of the channel in small fragments and collected into a maximum 2 kilogram (kg) sample. To ensure representative grade continuity, samples are collected at a distance interval of every 10 m along the target vein.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 68

Each 2 kg sample is sealed in a plastic sample bag with a sample tag and the number recorded in indelible ink on the outside of the bag. Sample bags are placed in rice bags and sealed with zip ties. QA/QC samples were inserted at prescribed intervals into the sample sequence and included with the sample shipment.

For both core and channel samples, a sample shipment form is prepared for each sample batch prior to shipping to SGS, detailing the included sample numbers per batch. At the laboratory, the sample list is verified against the received samples to confirm the shipment.

During the 2010 and 2011 drilling programs, Nyrstar sent samples to ALS and to SGS del Perú SA (SGS) in Callao (Lima). As of 2013, all samples were sent to the SGS laboratory in Lima. The SGS laboratory is internationally accredited to ISO/IEC 17025 standard.

The data from drilling, logging and surface/underground sampling programs were reviewed and interpreted independently by Great Panther’s senior geologist and by the Golder Qualified Person. Drill hole lithology and assay data was used to confirm the target intercepts and to reconcile against the surface and underground sampling.

It is the Coricancha Qualified Persons’ opinion that the Nyrstar and Great Panther drilling, core logging and sampling programs were carried out according to appropriate professional methodologies and procedures, including those presented in the CIM Exploration Best Practice Guidelines (August 2000 edition).

6.A.9 Mineral Resource and Mineral Reserve Estimates

The Mineral Resource Estimate for Coricancha has an effective date of December 20, 2017.

Measured
Mine	Tonnes	Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)	Cu (%)	Ag eq g/t	Aq eq oz (million)
Constancia	270,336	6.2	219	2.36	3.44	0.43	1,064	9.24
Wellington	92,328	6.1	184	1.69	3.95	0.51	1,028	3.05
Escondida	15,362	0.9	279	0.28	1.35	3.20	832	0.41
Constancia East	16,315	6.0	143	1.97	2.16	0.11	836	0.44
San Jose	6,922	5.8	212	4.49	2.94	0.30	1,078	0.24
Colquipallana	2,944	3.4	220	3.67	5.26	0.21	995	0.09
Total Measured	404,205	5.9	210	2.16	3.43	0.54	1,037	13.49

Indicated
Mine	Tonnes	Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)	Cu (%)	Ag eq g/t	Aq eq oz (million)
Constancia	218,545	6.0	188	2.09	3.08	0.34	968	6.80
Wellington	77,080	6.0	186	1.68	3.66	0.52	1,004	2.49
Escondida	21,406	1.0	238	0.24	1.08	2.84	733	0.50
Constancia East	18,636	5.8	137	1.93	1.95	0.11	798	0.48
San Jose	7,673	5.7	217	4.76	2.93	0.30	1,084	0.27
Colquipallana	5,215	3.4	207	3.31	5.14	0.19	953	0.16
Total Indicated	348,554	5.6	189	1.95	3.05	0.52	955	10.71

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 69

Inferred
Mine	Tonnes	Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)	Cu (%)	Ag eq g/t	Aq eq oz (million)
Constancia	532,422	5.3	215	1.71	3.29	0.40	950	16.25
Wellington	238,811	5.4	219	1.06	3.95	0.78	1,014	7.78
Escondida	96,926	2.2	208	0.26	2.24	1.90	751	2.34
Constancia East	49,234	5.7	125	1.66	1.57	0.21	760	1.20
San Jose	14,174	5.7	213	4.34	2.78	0.28	1,049	0.48
Colquipallana	11,592	3.7	117	2.98	3.15	0.15	743	0.28
Total Inferred	943,160	5.0	209	1.45	3.25	0.64	934	28.36

Notes:

1. Cut-offs are based on an estimated $140 Net Smelter Return (NSR) $/tonne.

2. Metal prices used to calculate NSR: $1,300 per ounce (oz) Au, $17.00/oz Ag, $1.15 per pound (lb) Pb, $1.50/lb Zn, $3.00/lb Cu

3. Block model grades converted to United States Dollar (USD) value using plant recoveries of 92.1% Ag, 80.2% Au, 77.3% Pb, 82.6% Zn, 52.7% Cu.

4. Rock Density for Constancia: 3.3 tonnes per cubic metre (t/m³), Wellington, Constancia East, Escondida, San Jose: 3.2 t/m³, Colquipallana: 2.9 t/m³.

5. Totals may not agree due to rounding.

6. Grades in metric units.

7. All currencies US dollars.

8. Ag equivalent ounces (eq oz) million (M) is calculated from gpt data

9. AgEq g/t = Ag g/t + (Pb grade x ((Pb price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) +(Zn grade x ((Zn price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Cu grade x ((Cu price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Au grade x (Au price per oz/Ag price per oz)).

The Mineral Resource Estimate was completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique was utilized in the estimation of grade to each of the blocks in the block models.

The Company's QA/QC program includes the regular insertion of blanks, duplicates, and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions. Sample assaying was completed at the independent SGS-Lima lab in Lima, Peru. The gold was analyzed by fusion with 30 g fire assay and atomic absorption spectroscopy (AAS) finish, with the resulting values reported in parts per million (code FAA313). The remaining 52 elements were analyzed by mass spectrometry of inductively coupled plasma (ICPMS) and the resulting values were reported in parts per million (code IMC12B). Any gold results that exceeded the limit of detection were re-analyzed by fire assay with a gravimetric finish (code FAG303). Any silver results that exceeded the limit of detection (>10g/t) were re-analyzed by fire assay with a gravimetric finish (code FAG313). Any other metals that exceeded the limit of detection were re-analyzed by ICP-AAS (code AAS11B).

There are no Mineral Reserve estimates for Coricancha.

6.A.10 Mining Operations

Historical mining methods at Coricancha include cut and fill, shrinkage stoping and variations of resue mining techniques. The latter method is highly selective and applied to maximize grade and minimize dilution in narrow vein mines. Mining methods will be the subject of future studies and will consider similar narrow vein methods of extraction.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 70

6.A.11 Processing and Recovery Operations

The current mineral processing flow sheet at Coricancha includes base metal sulfide flotation for the production of Pb, Zn, Cu and arsenopyrite concentrates. Also, differential flotation is used to separate the Au bearing arsenopyrite (AsPy) from pyrite (Py) with subsequent processing by BIOX® and CIL cyanidation for the recovery of Au and Ag. The most recent series of metallurgical test work was completed in 2009 by SGS Lakefield. The goal of the testing program was to optimize the process flow sheet, grind size and reagent scheme. Implementation of the SGS recommendations was completed before restarting plant operations in 2010. Operating data show that the changes were successful in improving the metal recovery, improving base metal concentrate grades and increasing Au production.

Review of the most recent Coricancha operating data indicate that the metallurgical performance of the processing plant is very stable with metal recoveries and concentrate grades being very consistent. Owing to the presence of AsPy, arsenic (As) is present as a deleterious element in most of the flotation products.

The front end of the plant is a base metal polymetallic sulfide concentrator producing Pb, Cu, and Zn concentrates. The process plant was expanded to include production of an AsPy concentrate, which is treated via BIOX® to recover refractory Au via CIL technology. The original plant was designed and commissioned in 1999 to process 600 tpd of ore primarily from the Wellington and Constancia Veins. Operations have been intermittent since then and are currently under care and maintenance status. There are no major modifications or additions required to put the plant back into production.

The final tailings consist of the AsPy/Py flotation tailings, Py concentrate, neutralized BIOX® liquor sludge, CIL residue, and mine dewatering neutralization sludge. These are thickened using the tailings thickeners with the addition of flocculant before final dewatering in the tailings plate and frame filters. The tailings filter cake is shipped to the Chinchan TSF.

6.A.12 Infrastructure, Permitting and Compliance Activities

Coricancha is located next to the Central Highway, 90 km east of the city of Lima, adjacent to the Rímac River in an area known as Tamboraque. The mine area is situated near the confluence of the Rímac River and its tributary, the Aruri River. The project infrastructure covers the area of the mining concessions and has the following facilities:

· Crushing and grinding equipment;

· Flotation and bio-oxidation circuits;

· Access road to the mine;

· Historical TSF and waste storage areas;

· Electrical power supply and distribution for the plant and mine, along with power systems including transformers and electrical distribution cables from historical mining activities;

· Water and compressed air distribution systems;

· Utility water is available for the mine and plant;

· Communications Systems (internet based);

· Mine light rail haulage network;

· Camp and kitchen facilities for mine and plant personnel; and

· First aidfacilities/Mine rescue equipment.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 71

Future plans will consider the use of the existing facilities as well as the need for additional infrastructure.

Coricancha has all environmental permits and operation licenses required such as an environmental impact assessment ("EIA"), water supply licenses, mining effluents discharge authorization, certificate of inexistence of archaeological remains, and operation and concession licenses.

A recent environmental monitoring review identified some deficiencies which are being addressed as detailed below.

Cancha 1 and 2 Tailings storage area represent the most important environmental and social risk for Coricancha. This is due to their location (130 m from Rímac River and 50 m above) and the fact that the Rímac River is Lima’s water source. To manage that risk, following ground instability in 2008 above the tailings site, MEM ordered the tailings removed and transferred from Cancha 1 and 2 to Chinchan Tailings Storage (Phase I and II). To date, the Company has removed a significant portion of the tailings. The Company is seeking approval of a modification to the remediation plan from MEM in accordance with the recommendations of an independent consultant to leave the remainder of the tailings in place to preserve the stability of the hillside. The Company has requested a change of the scheduling of the reclamation work, pending a decision from MEM regarding the proposal to modify the approved remediation plan. Concurrently, the Company has undertaken various legal measures to protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities which may be initiated as a result of the change in timing of the reclamation under the approved plan. The Company believes this matter can be resolved favorably but cannot provide any assurance. If it is not resolved favorably, it may result in fines and impact the Company’s stated plans and objectives for Coricancha.

Other historical tailings storage locations in the area include Triana (which is approximately 5 m above the Rímac River) and Mayoc (which is approximately 1.3 km from Coricancha). The Triana site has been closed and is guarded with a new upgraded concrete retaining wall, and the deposit itself may require resurfacing work in the future. Mayoc tailings were removed from the area and the site is currently under rehabilitation and remediation.

The location of tailings in the vicinity of the primary waterways and water sources, the regional seismic and atmospheric conditions, and the related past environmental, legal, and social issues, combine to form the most significant risk to the project and its future development, and which is continually under review for assessment and control.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 72

7. PRIMARY EXPLORATION PROPERTIES

The Company has two primary exploration projects in Mexico, El Horcón and Santa Rosa. Given the proximity to the GMC, mineralization from both these projects could conceptually be trucked to and processed at the Cata processing plant. Considering that El Horcón and Santa Rosa could in future form part of the GMC operations, the information for these properties (as disclosed in this section of the AIF) is contained in the GMC Technical Report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”, dated February 25, 2017. The effective date of the information related to the El Horcón and Santa Rosa Projects in that Technical Report is August 31, 2016.

Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. The information below is presented in summarized form and reference should be made to the full text of the GMC Technical Report which is available for review under the Company’s profile on SEDAR located at www.sedar.com.

7.A.1 El Horcón Project

Property Description and Location

The El Horcón Project is situated north of the city of Leon (Guanajuato State), in the state of Jalisco, Mexico, approximately 470 km northwest of Mexico City. The 17 claims expire between 2051 and 2056. There are no known environmental liabilities associated with the mineral claims.

On December 6, 2017, the Company filed an application to reduce the land holdings in the area; specifically to cancel the Horcón 4 Fraccion 1 concession. After dropping the Horcón 4 Fraccion 1 concession, the Company retains 15 contiguous claims and one isolated claim, totalling 3,520.72 hectares. The official resolution related to this application is pending.

The principal metals of interest are gold, silver, lead, and zinc. Mineralization occurs along structures, the largest of which is the Veta Madre with a strike length of 5 km.

History

The earliest known exploitation of veins on the El Horcón Project area was conducted by the Jesuits, during the Spanish reign, from the late 1500’s to their expulsion from Mexico in 1767. No production records are available, and various shallow southwest dipping veins were mined all to the immediate northeast of Great Panther’s drilling. Minor amounts of exploitation have been conducted, both by drifting along the veins and by stoping, on the Diamantillo and San Guillermo veins (including but not limited to the El Horcón, La Luz and Diamantillo underground access tunnels).

In 1932, a mining engineer Charles E. Pouliot, completed a mining study and evaluation of pillars, fill and remaining portions of the Diamantillo, San Guillermo and veins exploited by the Jesuits. It is not known if exploitation ensued. During the latter part of the 20th century, several bulk samples were shipped to various mills for metallurgical evaluation of the sulfide rich veins.

A number of academic geological studies were completed in the late 20th century by the Mexican Geological Survey. In 2004 and 2005, Mauricio Hochschild Mexico (“MHM”) conducted significant geological, structural, and geochemical studies on the veins of the Comanja area, followed by drilling of 12 core holes totalling 3,570 m. In 2008 and 2009, Exmin Resources Inc. ("Exmin") conducted further geological and geochemical studies, including underground mapping and sampling, and core drilling (5 holes totaling 1,052 m) in an effort to move the project to exploitation, without success.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 73

The Company purchased 100% of the El Horcón Project in 2012, which included most of the exploited veins mentioned above, except for certain internal claims covering portions of the veins.

Geological Setting and Mineralization

The El Horcón Project area is underlain by Mesozoic marine sediments and predominantly mafic submarine lava flows, of the La Luz and Esperanza Formations; these are weakly metamorphosed and intensely deformed. This basal sequence is cut by a variety of intrusive bodies ranging in composition from pyroxenite to granite with tonalitic and dioritic intrusive being the most volumetrically significant.

Cenozoic volcanic and volcanogenic sediments unconformably overlie the Mesozoic basement rocks. In the area, the oldest Cenozoic unit is the Paleocene Comanja granite. This was followed by the Eocene extrusion of andesite which was sporadically deposited and contemporaneous with the deposition of the Guanajuato conglomerate in localized grabens. The Guanajuato conglomerate underlies an unconformity beneath a sequence of felsic to mafic volcanic rocks that consists of Oligocene ignimbrites, lava flows and domes.

Within the El Horcón Project area quartz-dominated veins follow fractures and faults and are hosted within the Comanja granite, as well as the surrounding Mesozoic meta-volcanic and meta-sedimentary rocks.

The vein system at El Horcón is a quartz-chalcedony-dominated, structurally-controlled, epithermal system hosted by Paleocene Comanja granitic rocks and Mesozoic low-grade metamorphic metasedimentary / metavolcanic basement and consists of three principal vein sets that formed in faults and extension fractures.

· NW-striking, SW-dipping veins with dips generally ranging from 45°-70°+,

· NW-striking, SW-dipping low-dip veins (20°-30°), and

· NE-striking generally steep transverse veins.

Gangue minerals associated with the quartz veining include minor fluorite, hematite, chlorite, calcite, and pyrite, while minerals of economic interest include galena (lead), sphalerite (zinc), and minor chalcopyrite (copper). Petrographic work by MHM indicates that silver is present as acanthite. This undated (likely 2005) MHM report (un-acknowledged author) also indicated four stages of Phase 1, and three stages of Phase 2 vein mineralization. Phase 1 includes base metal and precious metal introduction into the vein structures (gold minerals unknown), while Phase 2 stages include calcite and further barren quartz. Beside silicified cataclastic quartz breccia (sealed fault structures), the quartz-chalcedony shows typical epithermal coliform textures.

The primary vein structures on the El Horcón Project include the Diamantillo, San Guillermo, El Ratones, Madre, Crucero, Del Alto, and Alaska veins. Based upon assay results from the channel samples across the surface expressions of these veins, vein widths, and underground exposures by Exmin, MHM, and the Company, it was decided to focus the initial core drill-hole program on the Diamantillo and San Guillermo veins. The narrow Natividad and Diamantillo HW veins were found both from drill site preparation and core drilling. The veins extend in a NW-SE orientation for approximately 7 km in strike and across approximately 2.5 km in width.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 74

Exploration

Exploration work conducted by the Company has consisted of an initial thorough re-evaluation of the project by geological mapping, vein re-sampling both on surface and of all accessible underground openings in 2012-2013 (1,623 samples), followed by a surface core diamond drilling program of 24 drill holes totalling 2,160 metres (1,177 samples). In 2018, a mapping and sampling surface campaign was completed (558 samples). The mapping is intended to define alteration and geochemical anomalies along veins previously unmapped and sampled by the Company, while fully exploring the potential of the project.

Drilling

Diamond drilling at El Horcón was conducted by the Company’s exploration staff. The exploration drilling was conducted on 50-100 m spaced sections, with one to three holes drilled per section, as well as at approximately 50 m spacing vertically between holes. The Company’s 2013 drilling was focused from surface to approximately 100 m below surface along a strike length of 650 metres.

The Company’s Phase 1 drill-holes completed from mid-April to mid-June 2013 are prefixed by EH13 and include holes 1-24. Only the relevant MHM drilling was used in the Mineral Resource estimation (no records for the Exmin drilling). The drill contractor for the Company was G4 Drilling based in Hermosillo, Sonora.

The management, monitoring, surveying, and logging of the 2013 series “EH13” prefix exploration holes was carried out under the supervision of the Company’s exploration geological staff.

Procedures related to sample and geological data integrity are consistent with those described for the Guanajuato Mine.

Sample Preparation, Analyses and Security

The drill core samples were prepared by technicians working under the direction of the Exploration Department geologists. The exploration diamond drill core was HQ diameter.

All of the analytical work was completed by the SGS GTO laboratory and the quality control measures and data verification procedures are consistent with those described for the Guanajuato Mine.

Mineral Resource Estimates

Mineral Resources were estimated from four area-specific block models. A set of wireframes representing the mineralized zones served to constrain both the block models and data subsequently used in Inverse Distance Cubed (ID3) Au, Ag, Pb, and Zn grade interpolation. The effective date of the estimate is August 31, 2016.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other factors that could materially affect the Mineral Resource estimates detailed in this report.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 75

Vein	Tonnage (tonnes)	Ag (g/t)	Ag  (oz)	Au (g/t)	Au (oz)	Pb (%)	Zn (%)	Ag eq (g/t)	Ag eq (oz)
Diamantillo	109,649	89	313,468	3.04	10,705	3.11	4.62	398	1,403,358
Diamantillo HW	4,781	54	8,269	4.59	706	2.65	0.47	459	70,518
Natividad	6,038	136	26,347	3.03	587	1.74	0.13	403	78,139
San Guillermo	41,672	37	50,011	4.44	5,943	1.75	2.53	404	540,899
Total Inferred	162,140	76	398,094	3.44	17,942	2.69	3.79	401	2,092,913

Notes:

1. $110/tonne NSR Cut-off.

2. Silver equivalent was calculated using a 70 to 1 ratio of silver to gold value.

3. Rock Density for all veins for Diamantillo is 2.77 t/m³, San Guillermo 2.78 t/m³, Diamantillo HW is 2.62 t/m³, Natividad 2.57 t/m³.

4. Totals may not agree due to rounding.

5. Grades in metric units.

6. Contained silver and gold in troy ounces.

7. Minimum true width 1.5 m.

8. Metal Prices: $18.00/oz silver, $1,300/oz gold and $0.80/lb lead.

9. Ag eq (g/t) and Ag eq (oz) use only Au, Ag and Pb values.

Mineral Reserve Estimates

There is no Mineral Reserve estimate for the El Horcón Project.

Mining Operations

The mining method considered when estimating the Mineral Resource is standard cut and fill with waste provided by the development.

Infrastructure, Permitting and Compliance Activities

The El Horcón Project is situated along the eastern side of the Sierra Guanajuato mountain range and is accessible via a rough access road 10 km north of Comanja, Jalisco. Comanja is a small village and has a population of approximately 500 people and is located within 40 km, by road, of an international airport at León, Mexico.

In 2017, the Environmental Assessment Manifest and Change of Land Use applications were approved by SEMARNAT. These authorizations allow the future exploration and exploitation on the property.

Exploration and Development

During July and August of 2016, a program of detailed surface geological mapping (1:500 scale) was continued, along with rock sampling of prospective veins approximately one kilometre southeast along the trends of the Diamantillo / Madre veins. Vein swarms and stockwork were noted with generally weakly anomalous gold, silver, lead, zinc and copper values.

During 2018, work included finalizing the details on the SEMARNAT application regarding exploration and exploitation permits and a work program that included additional surface mapping and sampling to prioritize targets for possible follow-up drilling.

7.A.2 Santa Rosa Project

In 2011, the Company purchased a 100% interest in the Santa Rosa silver-gold property in Guanajuato State, Mexico, for total consideration of $1.5 million in cash.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 76

Property Description and Location

The Santa Rosa Project includes a cluster of non-contiguous mineral claims to the northeast of Guanajuato. Most cover segments of historically known veins within the Sierra vein system, as well as two claims located further north staked more from a regional conceptual nature.

The nine mineral claims comprise an area of 20,438 hectares and expire between 2040 and 2064. There are no known environmental liabilities associated with the mineral claims.

The southern claims of the Santa Rosa Project are situated along the eastern side of the Sierra Guanajuato mountain range, northeast of Guanajuato, Guanajuato. The more northerly claims in the Santa Rosa Project are located nearer the town of San Felipe, an 80 km drive north of Guanajuato.

History

The core of the Santa Rosa Project claims covers vein exposures along the Sierra vein system, along the eastern flank of the central Veta Madre vein. Minor amounts of pitting, short adits, and shallow vertical shafts have been completed with a minor amount of vein exploitation. No records are available as to these activities. The Company completed due diligence sampling during 2011 and purchased the Santa Rosa claims during the same year. The Cañada de la Virgen claim was part of the Cooperative claim block (Guanajuato Mine) purchased by the Company in 2005. The Prometida, Las Monjas, Romeo y Julieta and Jardin de Oro mineral claims were staked by the Company in 2012 as part of a regional geological evaluation. In 2016, the Prometida, Las Monjas, Romeo y Julieta claims were cancelled due to their limited economic potential.

Geological Setting and Mineralization

The stratigraphy of the area presents to the Company basement rocks of the older units including Mesozoic age La Luz and La Esperanza Formations. These formations consist of meta-sedimentary sequences, including shale, andesite and felsic dykes deformed and folded by regional metamorphism. Upper volcanic package rocks in concordant contact include a sequence of the lithic tuff, ignimbrites, and also in some places rhyolite dykes and jasperoids. The area generally presents a strong NW structural orientation, with normal faults and a dextral component.

In the second phase of exploration (July 2014), detailed mapping was completed in the Cañada de la Virgen claim and in the Virgin vein development tunnel. The Virgin vein structure with minor quartz is oriented around 320-330° with a dip of 35-45°NE, and an average width of 0.50 m. The vein, inside the tunnel, occurs at the contact of a diorite dike. On surface, there are two separate structures enveloping a quartz stockwork hosted in the meta-sedimentary rocks. The tunnel is 60 m long and there are several inclined shafts where mineralization has been extracted. The average grade of samples is 457 g/t Ag eq. The wall-rock of the Virgin vein, which outcrops for 400 m, shows propylitic alteration along its length. Host rocks include lithic tuffs, ignimbrites, and associated dykes.

Another vein structure identified during the mapping extends for more than 600 m and is exposed in the Salaverna North tunnel. It is a vein structure of 0.40 m width, with strong silicification and hosted in the meta-sedimentary package. The vein structure, when it reaches the upper rhyolite volcanic rocks becomes a stockwork with hematite, limonite, clays, and fine disseminated pyrite.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 77

Exploration

In the first stage of the Company’s exploration (2012) on the Cañada de la Virgen claim, a total of 168 rock samples from surface, and 537 core samples from the five diamond drill holes were collected.

During the second stage of the Company’s exploration (2014), a total of 140 samples were taken from surface and underground.

Drilling

During 2012, five core holes (HQ) were completed on the Santa Rosa Project, specifically on the Cañada de la Virgen claim. In 2017, a second drilling program comprising five core holes (HQ) was completed on the Cañada de la Virgen area. No results of economic significance were encountered in either program.

Sample Preparation, Analyses and Security

The drill core samples were prepared by technicians working under the direction of the Exploration Department geologists. The exploration diamond drill core from Santa Rosa was of HQ diameter.

All the analytical work was completed by the SGS GTO laboratory and the quality control measures and data verification procedures are consistent with those described for the Guanajuato Mine.

Mineral Resource Estimates

There is no Mineral Resource estimate for the Santa Rosa Project.

Mineral Reserve Estimates

There is no Mineral Reserve estimate for the Santa Rosa Project.

Mining Operations

The Santa Rosa Project is exploration in nature and no mining methods have been defined.

Infrastructure, Permitting and Compliance Activities

The southern claims of the Santa Rosa Project are accessible via road access 20 km northeast of Guanajuato, Guanajuato. The city of Guanajuato is serviced by an international airport located on the outskirts of Silao, a 30-minute drive on a toll road from Guanajuato. The more northerly claims in the Santa Rosa Project are located nearer the town of San Felipe, an 80 km drive north of Guanajuato by paved road.

Access to local resources is provided within the city of Guanajuato and the town of San Felipe.

Exploration and Development

A work program consisting of 960 m of surface man-portable rig core drilling and associated trail building was completed in 2017. No significant results were returned from this drilling.

The Company has no program planned for 2019.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 78

7.A.3 Cangold and Coboro

In 2015, the Company completed the acquisition of Cangold and its wholly-owned subsidiary, Coboro, for total consideration of C$3.1 million (approximately half of which was represented by shares of the Company issued for shares of Cangold). As a result, the Company acquired an option to purchase up to a 100% interest in the GDLR Project. The Company also acquired 100% interests in the Plomo property located in Sonora, Mexico, and the Argosy property located in the Red Lake Mining District in northwestern Ontario. Neither the Plomo property or the Argosy property is considered material to the Company at this time.

In February 2016, the Company terminated the option agreement for the GDLR Project after conducting an evaluation of the project. The Company maintains the Plomo and Argosy projects in good standing, but does not have any significant exploration plans for these projects at this time.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 79

8. RISK FACTORS

The operations of the Company are characterized by a number of risks inherent to the nature of the mining industry and to the nature of the Company’s business in particular. The following risk factors, as well as other risks discussed in this AIF, could materially affect the Company’s future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to the Company. These risks and uncertainties are not the only ones faced by the Company. Additional risks and uncertainties not presently known to management or that management currently consider immaterial may also impair the Company’s business operations. If any of these events actually occur, the Company’s business, prospects, financial condition, cash flows and operating results could be materially harmed. Before deciding to invest in securities of the Company, investors should carefully consider such risks and uncertainties.

Metals and Mineral Prices Are Subject to Dramatic and Unpredictable Fluctuations

The market prices of precious metals and other minerals are volatile and cannot be controlled. If the prices of precious metals and other minerals drop significantly, the economic prospects of the Company’s operating mines and projects could be significantly reduced or rendered uneconomic. There is no assurance that even if commercial quantities of ore are discovered, a profitable market may exist for the sale of same. Mineral prices have fluctuated widely, particularly in recent years. The marketability of minerals is also affected by numerous other factors beyond the control of the Company, including government regulations relating to royalties, allowable production and importing and exporting of minerals, the effect of which cannot be accurately predicted.

The Company has not entered into any hedging arrangements for any of its silver or gold production, but has from time to time sought arrangements to price silver and gold content of its production in advance of contractual pricing periods which can be two to three months from the time of shipment. The Company may enter into similar arrangements in the future.

Current Global Financial Conditions

In recent years, global financial markets have experienced increased volatility and global financial conditions have been subject to increased instability. These had a profound impact on the global economy. Many industries, including the mining sector, were impacted by these market conditions. Some of the key impacts of financial market turmoil include contraction in credit markets resulting in a widening of credit risk, devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. These factors may impact the ability of the Company to obtain equity or debt financing and, if available, to obtain such financing on terms favourable to the Company. If these increased levels of volatility and market turmoil continue, the Company’s operations and planned growth could be adversely impacted and the trading price of the securities of the Company may be adversely affected.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 80

Inaccuracies in Production and Cost Estimates

The Company prepares estimates of future production and future production costs for specific operations. No assurance can be given that these estimates will be achieved. Production and cost estimates are based on, among other things, the following: the accuracy of Mineral Resource estimates; the accuracy of assumptions regarding ground conditions and physical characteristics of mineralization, equipment and mechanical availability, labour, and the accuracy of estimated rates and costs of mining and processing. Actual production and costs may vary from estimates for a variety of reasons, including actual mineralization mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics, short-term operating factors relating to the Mineral Resources, such as the need for sequential development of mineralized zones and the processing of new or different grades of mineralization; and the risks and hazards associated with mining described below under “Mining and Mineral Exploration Have Substantial Operational Risks”. In addition, there can be no assurance that silver recoveries or other metal recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production, or that the existing known and experienced recoveries will continue. Costs of production may also be affected by a variety of factors, including: variability in grade or dilution, metallurgy, labour costs, costs of supplies and services (such as, fuel and power), general inflationary pressures and currency exchange rates. Failure to achieve production or cost estimates, or increases in costs, could have an adverse impact on the Company’s future cash flows, earnings, results of operations and financial condition.

Uncertainty Regarding Resource Estimates

Only Mineral Resources have been determined for certain of the Company’s properties, and other than Tucano, no estimate of reserves on any property has been completed. Resource estimates are based on interpretation and assumptions and may yield less mineral production under actual conditions than is currently estimated. In making determinations about whether to advance any projects to development, the Company must rely upon estimated calculations as to the Mineral Resources and grades of mineralization on its properties. Until mineralized zones are mined and processed, Mineral Resources and grades of mineralization must be considered as estimates only. These estimates are imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling which may prove to be unreliable. The Company cannot assure that:

· Resource or other mineralization estimates will be accurate; or

· Mineralization can be mined or processed profitably.

Any material changes in Mineral Resource estimates and grades of mineralization will affect the economic viability of a mine or a project and its return on capital. The Company’s resource estimates have been determined and valued based on assumed future prices, cut-off grades and operating costs that may prove to be inaccurate. Extended declines in market prices for silver, gold, zinc and lead may render portions of the Company’s mineralization uneconomic and result in reduced reported Mineral Resources.

Any material reductions in estimates of Mineral Resources, or of the Company’s ability to extract such Mineral Resources, could have a material adverse effect on the Company’s results of operations or financial condition. The Company cannot assure that Mineral Recovery rates achieved in small scale tests will be duplicated in large scale tests under on-site conditions or in production scale.

Production Decisions Made without Identified Mineral Reserves

There are no current estimates of Mineral Reserves for any of the Company’s mines or projects. The Company made decisions to enter into production at Topia, the Guanajuato Mine and San Ignacio without having completed final feasibility studies. Accordingly, the Company did not base its production decisions on any feasibility studies of Mineral Reserves demonstrating economic and technical viability of the mines. As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company’s mines or the costs of such recovery. As the Company’s mines do not have established reserves, the Company faces higher risks that anticipated rates of production and production costs will be achieved, each of which risks could have a material adverse impact on the Company’s ability to continue to generate anticipated revenues and cash flows to fund operations from and ultimately achieve or maintain profitable operations.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 81

Sufficiency of Current Capital and Ability to Obtain Financing

The further exploitation, development and exploration of mineral properties in which the Company holds interests or which the Company acquires may depend upon its ability to obtain financing through equity financing and/or debt financing, to enter into joint venture arrangements or to obtain other means of financing. There is no assurance that the Company will be successful in obtaining required financing as and when needed. Volatile precious metals markets may make it difficult or impossible for the Company to obtain financing on favourable terms, or at all.

As at December 31, 2018, the Company had approximately $51 million of cash and short-term deposits. During 2018 the Company generated positive cash flow from operating activities. There is no assurance that the Company’s cash flows generated from mining activities, along with its current cash and other net working capital, will be sufficient to fund the Company’s operations without requiring any additional capital to meet its planned initiatives (including plans for Coricancha and the integration of the Beadell acquisition), and to fund investment and exploration, evaluation, and development activities for the foreseeable future. The Company’s ability to fund its operations without additional capital will be highly dependent on metal prices and the ability of the Company to maintain cost and grade controls at its operations, and is subject to the Company’s plans and strategy.

As a result of the acquisition of Beadell, the Company has scheduled debt repayments of approximately $17 million in 2019, of which approximately $9.3 million is due in the first half of 2019 (after giving effect to the MACA Agreement). In addition, the Company was required to make an offer to purchase Beadell’s outstanding convertible debentures with a total principal value of $10 million (Refer to 3.C. SIGNIFICANT ACQUISITIONS section for more information). The Company’s plans include seeking term debt facilities to refinance Beadell’s secured debt facilities and possibly its convertible debentures in the event the holders accept the offer to purchase. There is no assurance this additional financing will be available on terms acceptable to the Company if and when required.

The Company has stated its objective to grow by acquisition, and accordingly, will continue to evaluate opportunities to execute and complete additional acquisitions, and these may require additional capital. There is no assurance that the Company will be able to obtain additional capital when required. Failure to obtain additional financing on a timely basis may cause the Company to postpone acquisitions, expansion, development and exploration plans, or even to suspend operations.

Mining and Mineral Exploration Have Substantial Operational Risks

Mining and mineral exploration involves many risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. These risks include but are not limited to:

· major or catastrophic equipment failures;

· mine failures and slope failures;

· failure of tailings facilities;

· ground fall and cave-ins;

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 82

· deleterious elements materializing in the mined resources;

· environmental hazards;

· industrial accidents and explosions;

· encountering unusual or unexpected geological formations;

· labour shortages or strikes;

· civil disobedience and protests; and

· natural phenomena such as inclement weather conditions, floods, droughts, rock slides and earthquakes.

These occurrences could result in environmental damage and liabilities, work stoppages and delayed production, increased production costs, damage to, or destruction of, mineral properties or production facilities, personal injury or death, asset write-downs, monetary losses, loss of or suspension of permits as a result of regulatory action, reputational damage and other liabilities. The nature of these risks is such that liabilities could exceed policy limits of the Company’s insurance coverage, in which case the Company could incur significant costs that could prevent profitable operations.

Political Risk and Government Regulations

The Company’s mining, exploration and development activities are focused in Brazil, Mexico and Peru, and are subject to national and local laws and regulations governing prospects, taxes, labour standards, occupational health, land use, environmental protection, mine safety and others which currently or in the future may have a substantial adverse impact on the Company. To comply with applicable laws, the Company may be required to make significant capital or operating expenditures. Existing and possible future environmental legislation, regulation and action could cause additional expense, capital expenditures, restriction and delays in the activities of the Company, the extent of which cannot be reasonably predicted. Violators may be required to compensate those suffering loss or damage by reason of the Company’s mining activities and may be fined if convicted of an offence under such legislation.

Mining and exploration activities in the countries where the Company operates may be affected in varying degrees by political instabilities and government regulations relating to the mining industry. Any changes in regulations or shifts in political conditions are beyond the Company’s control and may adversely affect the business. Operations may also be affected to varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriation of property, environmental legislation and mine safety. The status of Brazil, Mexico and Peru as developing countries may make it more difficult for the Company to obtain any required financing for projects. The effect of all these factors cannot be accurately predicted. Notwithstanding the progress achieved in improving Brazilian, Mexican and Peruvian political institutions and in revitalizing their economies, the present administrations or any successor governments may not be able to sustain the progress achieved. The Company does not carry political risk insurance.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 83

Risks Associated with Obtaining and Complying with Tailings and Other Permits

The Company’s operations are subject to obtaining and maintaining permits (including environmental permits) from appropriate governmental authorities. There is no assurance that necessary permits will be obtained or that delays will not occur in connection with obtaining all necessary renewals of such permits for the existing operations, or additional permits for any possible future changes to operations, or additional permits associated with new legislation. Additionally, it is possible that previously issued permits may become suspended for a variety of reasons, including through government or court action. There can be no assurance that the Company will continue to hold or obtain, if required to, all permits necessary to develop or continue operating at any particular property.

The Company has been advised by CONAGUA, the Mexican federal agency responsible for water administration, that the Company is required to make applications for permits associated with the occupation and construction of the TSF at the GMC. Subsequently, the Company filed its applications and CONAGUA officials carried out an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. The duration and success of efforts to obtain the tailings permits are contingent upon many variables not within the Company’s control. The Company cannot assure that the tailings permits will be obtained or renewable on reasonable terms, or at all. Delays or a failure to obtain such required permits, or the expiry, revocation or failure by the Company to comply with the terms of any such permits, if obtained, would adversely affect the Company’s ability to continue operating or expand the TSF at the GMC and could result in a halt of mining operations at the GMC, each of which could adversely affect the Company’s results of operations.

The Company has also determined that it may require additional water use and discharge permits for its operations at the GMC, particularly during of periods of excessive drought. The Company continues to evaluate whether such permits are necessary. If such permits prove necessary, there can be no assurance that the Company will be able to obtain such permits, which could adversely affect the Company’s operations.

At Tucano, the Company’s TSF is an engineered structure featuring a downstream construction method, judged as low risk by the Brazilian Agencia Nacional de Mineração.

Risks Associated with Topia Tailings Expansion

In December 2017, SEMARNAT granted all permits for the construction and operation of Phase II of the Topia TSF.  Phase II is not a conventional tailings dam, but instead a dry stack operation using filter cake.  The deposition includes stacking and compaction of the material.  While detailed design and engineering of the under drainage of the lower bench of Phase II is underway, the Company is utilizing the upper bench of Phase II for the deposition of dry stack tailings and expects to continue to do so throughout 2019. 

Phase I of the TSF was closed and contoured during 2018.  Based upon recommendations from an independent third party, an additional three instrumentation stations in the footprint of the TSF will be put in place in 2019 for the purposes of continuous monitoring.

The independent third party will continue to perform an annual review of Phase I, as well as conduct geotechnical reviews and provide design considerations for Phase II.

Furthermore, the planned capacity of the Phase II TSF is not sufficient to handle the processing of Topia’s current M&I Resources, which will necessitate one or more further expansions, which are presently under evaluation. There are risks associated with future expansions including, but not limited to, identifying and procuring suitable sites, and obtaining the necessary permits for construction and operation.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 84

Reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF, have led to a broader review by the Mexican environmental compliance authority, PROFEPA and by the Company of the permitting status for all of Topia operations, environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, the Topia Mine was accepted into a voluntary environmental audit program supported by PROFEPA which commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings and has until January 2020 to complete this. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates will be submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program further reviews will not lead to future suspensions of operations.

Factors Beyond the Company’s Control

There are a number of factors beyond the Company’s control. These factors include, but are not limited to, changes in government regulation, political changes, high levels of volatility in metal prices, availability of markets, availability of adequate transportation and smelting facilities, availability of capital, environmental and social factors, acts of Nature, catastrophic risks, and amendments to existing taxes and royalties. These factors and their effects cannot be accurately predicted.

Environmental and Health and Safety Risks

The Company’s operations are subject to environmental regulations promulgated by government agencies from time to time. There is no assurance that environmental regulations will not change in a manner that could have an adverse effect on the Company’s financial condition, liquidity or results of operations, and a breach of any such regulation may result in the imposition of fines and penalties.

Environmental legislation is constantly expanding and evolving in ways that impose stricter standards and more rigorous enforcement, with higher fines and more severe penalties for non-compliance, and increased scrutiny of proposed projects. There is an increased level of responsibility for companies, and trends towards criminal liability for officers and directors for violations of environmental laws, whether inadvertent or not. The cost of compliance with changes in governmental regulations has the potential to reduce the profitability of the Company’s operations.

Exploration activities and/or the pursuit of commercial production of the Company’s mineral claims may be subject to an environmental review process under environmental assessment legislation. Compliance with an environmental review process may be costly and may delay commercial production. Furthermore, there is the possibility that the Company would not be able to proceed with commercial production upon completion of the environmental review process if government authorities do not approve the proposed mine, or if the costs of compliance with government regulation adversely affect the commercial viability of the proposed mine.

The development and operation of a mine involves significant risks to personnel from accidents or catastrophes such as fires, explosions or collapses. These risks could result in damage or destruction of mineral properties, production facilities, casualties, personal injury, environmental damage, mining delays, increased production costs, monetary losses and legal liability. The Company may not be able to obtain insurance to cover these risks at economically feasible premiums. Insurance against certain environmental risks, including potential liability for pollution and other hazards as a result of the disposal of waste products occurring from production, is not generally available to companies within the mining industry. The Company may be materially adversely affected if it incurs losses related to any significant events that are not covered by its insurance policies.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 85

The Company has safety programs in place and continues to pursue further improvements on an ongoing basis. Safety meetings with employees and contractors are held on a regular basis to reinforce standards and practices. However, there is no assurance that safety incidents will not be experienced in the future, or that operations might not be materially affected by their occurrence. Further, a safety incident could have an adverse effect on the Company’s financial condition, liquidity or results of operations, and may result in the imposition of fines and penalties.

Risks Which Cannot Be Insured

The Company maintains appropriate insurance for liability and property damage; however, the Company may be subject to liability for hazards that cannot be insured against, which if such liabilities arise, could impact profitability and result in a decline in the value of the Company’s securities. The Company’s operations may involve the use of dangerous and hazardous substances; however, extensive measures are taken to prevent discharges of pollutants in the ground water and the environment. Although the Company will maintain appropriate insurance for liability and property damage in connection with its business, the Company may become subject to liability for hazards that cannot be insured against or which the Company may elect not to insure itself against due to high premium costs or other reasons. In the course of mining and exploration of mineral properties, certain risks and, in particular, unexpected or unusual geological operating conditions including rock bursts, cave-ins, fires, flooding and earthquakes, may occur. It is not always possible to fully insure against such risks and the Company may decide not to take out insurance against such risks as a result of high premiums or other reasons.

Risk of Secure Title of Property Interest

There can be no assurance that title to any property interest acquired by the Company or any of its subsidiaries is secured. Although the Company has taken reasonable precautions to ensure that legal title to its properties is properly documented, there can be no assurance that its property interests may not be challenged or impugned. Such property interests may be subject to prior unregistered agreements or transfers or other land claims, and title may be affected by undetected defects and adverse laws and regulations.

In the jurisdictions in which the Company operates, legal rights applicable to mining concessions are different and separate from legal rights applicable to surface lands; accordingly, title holders of mining concessions in such jurisdictions must agree with surface land owners on compensation in respect of mining activities conducted on such land.

Unauthorized Mining

The mining industries in Brazil and Mexico are subject to incursions by illegal miners or “garimperos” or “lupios” who gain unauthorized access to mines to steal mineralized material mainly by manual mining methods. The Company has experienced such incursions including an incident in the first quarter of 2014 at the GMC which resulted in both a significant financial loss to the Company and a material impact to the Company’s operations. Beadell also experienced this over the past three years at the Tartaruga exploration project in Brazil. In addition to the risk of losses and disruptions, these illegal miners pose a safety and security risk. The Company has taken security measures at its sites to address this issue and ensure the safety and security of its employees, contractors and assets. These incursions and illegal mining activities can potentially compromise underground structures, equipment and operations, which may lead to production stoppages and impact the Company’s ability to meet production goals.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 86

Commercialization Risk of Development and Exploration Stage Properties and Ability to Acquire Additional Commercially Mineable Mineral Rights

The Company’s primary mineral properties in Mexico, Topia and the GMC (excluding San Ignacio), have been in the production stage for more than ten years under the ownership of the Company, and have generated positive cash flow from operating activities. However, the commercial viability of these mines was not established by a feasibility study or preliminary economic assessment. Similarly, San Ignacio commenced production in 2014 and has generated positive cash flow from operating activities; however, the commercial viability of this mine was not established by a feasibility study or preliminary economic assessment. Coricancha was a past producing mine that is currently on care and maintenance. There is no assurance that the Company’s evaluation efforts will be sufficient to bring Coricancha into production.

Mineral exploration and development involve a high degree of risk. There is no assurance that commercially viable quantities of ore will be discovered at Coricancha, or the Company’s other exploration projects, or that its exploration or development projects will be brought into commercial production.

Most exploration projects do not result in the discovery of commercially mineable ore deposits and no assurance can be given that any anticipated level of recovery of ore reserves will be realized or that any identified mineral deposit will ever qualify as mineable. Estimates of reserves, resources, mineral deposits and production costs can also be affected by such factors as environmental permitting regulations and requirements, weather, environmental factors, social dynamics in local communities, negotiations with land owners, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions.

Material changes in commodity prices, Mineral Resources, grades, dilution or recovery rates, or other project parameters may affect the economic viability of any project. The Company’s future growth and productivity will depend, in part, on the ability to identify and acquire additional commercially mineable mineral rights, and on the costs and results of continued exploration and potential development programs. Mineral exploration and development is highly speculative in nature and is frequently non-productive. Substantial expenditures are required to:

· establish Mineral Resources through drilling and metallurgical and other testing techniques;

· determine metal content and metallurgical recovery processes to extract metal from the ore;

· evaluate the economic feasibility; and

· construct, renovate, expand or modify mining and processing facilities.

In addition, if potentially economic mineralization is discovered, it would take several years from the initial phases of exploration until production is possible. During this time, the economic feasibility of production may change. As a result of these uncertainties, there can be no assurance that the Company will successfully acquire additional commercially mineable properties.

Development projects usually have no operating history upon which to base estimates of future cash flow. Estimates of Proven and Probable Mineral Reserves, Measured and Indicated Mineral Resources, and Inferred Mineral Resources are, to a large extent, based upon detailed geological and engineering analysis. Further, Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. At this time, other than Tucano, the Company’s properties do not have defined Mineral Reserves. Due to the uncertainty of Inferred Mineral Resources, there is no assurance that Inferred Mineral Resources will ever be upgraded to either Measured or Indicated Mineral Resources or to Proven or Probable Mineral Reserves.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 87

Because mines have limited lives, the Company must continually replace and expand its Mineral Resources as production continues. The life-of-mine estimates for the Company’s mines may not be correct. The ability of the Company to maintain or increase its annual production of metals and the Company’s future growth and productivity will be dependent in significant part on its ability to identify and acquire additional commercially mineable mineral rights, to bring new mines into production, to expand Mineral Resources at existing mines, and on the costs and results of continued exploration and potential development programs. The inability to identify Mineral Resources in quantities sufficient to bring a mineral property into production may result in the write down of the value of the mineral property.

Risks Associated with the Coricancha Acquisition

The Company completed the acquisition of Coricancha on June 30, 2017. The Company’s decision to acquire Coricancha was subject to a number of assumptions, including anticipated exploration results, the expected cost and timing of restarting operations, anticipated processing and production rates that may be achieved at Coricancha upon reactivation, the working capital position of Coricancha at closing, the ultimate cost of reclaiming legacy tailings facilities, potential increases to the Coricancha resource base, the anticipated cost of the mine closure bond, the indemnification obligations of Nyrstar under the Share Purchase Agreement and current environmental conditions and liabilities at Coricancha. While Nyrstar, as the former owner of Coricancha, has agreed to indemnify the Company with respect to certain reclamation costs, these indemnification obligations are capped. While the Company presently believes the ultimate reclamation costs will be less than amount of the indemnity cap, there is no assurance that this will be the case. In addition, there may be disagreements between the Company and Nyrstar as to the amount of Nyrstar’s indemnification obligations under the Share Purchase Agreement.

If any of these assumptions prove incorrect, the Company may not be able to achieve profitable operations at Coricancha. The acquisition of Coricancha is subject to a number of risks that may result in a materially adverse impact on the Company, including potential political risks involving the Company's operations in a foreign jurisdiction, technical and operational difficulties that may be encountered with reactivation of Coricancha, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, uncertainty in Mineral Resource estimation, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, permitting risks, the inability or failure to obtain adequate financing on a timely basis, unanticipated increases in the cost of the tailings reclamation, increased mine closure costs and related bond requirements, and the other risks and uncertainties described elsewhere in this AIF, any of which could have a material adverse impact on the Company and its results of operations.

In addition, although the Company has completed a Technical Report in the form of a preliminary economic assessment at Coricancha and is currently completing a large scale bulk sample program confirming the assumptions of the Technical Report prior to deciding whether to place the mine into production, the Company will not conduct a preliminary feasibility study or feasibility study in connection with its decision. Mineral properties that are placed into production without the benefit of a feasibility study have historically had a higher risk of failure. There is no assurance the Company will achieve any particular level of production at Coricancha or that operations there will be profitable.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 88

Risks Associated with the Acquisition of Beadell

In addition to the risk factors included in this AIF, the following are additional risk factors in respect of the Great Panther following its acquisition of Beadell that are to be considered:

Financing Risks Associated with the Tucano Gold Mine

There can be no assurance that the Company will be able to secure the funds necessary to finance the optimization and further development of the Tucano Gold Mine in a manner that will increase value to shareholders. In addition, Tucano will have significant working capital needs, given its 2019 production profile with a much greater proportion of production in the second half of the year.

Substantial expenditures will be required to optimize, develop and to continue with the exploration of the Tucano Gold Mine and near mine exploration targets. In order to explore and develop Tucano, the Company may be required to expend significant amounts for, among other things, geological, geochemical and geophysical analysis, drilling, assaying, and, if warranted, further mining and infrastructure feasibility studies. The Company may not benefit from any of these investments if it is unable to identify commercially exploitable mineralized material. If successful in identifying reserves, it may require additional capital to construct infrastructure necessary to extract recoverable metal from those reserves.

The ability of the Company to achieve sufficient cash flows from internal sources and obtain necessary funding through equity financing, joint ventures, debt financing, or other means, depends upon a number of factors, including the state of the worldwide economy and the price of gold, silver and other metals. The Company may not be successful in achieving sufficient cash flows from internal sources and obtaining the required financing as and when needed for these or other purposes on terms that are favorable to it or at all, in which case its ability to continue operating may be adversely affected. Failure to achieve sufficient cash flows and obtain such additional financing could result in delay or indefinite postponement of further exploration or potential development and may cause the Company to forfeit rights in some or all of its properties or reduce or terminate some or all of its planned operations.

Exploration and Development Risks Associated with the Tucano Gold Mine

Resource exploration and development is a speculative business, characterized by a number of significant risks including, among other things, unprofitable efforts resulting not only from the failure to discover mineral deposits but also from finding mineral deposits that, though present, are insufficient in quantity and quality to return a profit from production. The marketability of minerals acquired or discovered by the Company with respect to the Tucano Gold Mine may be affected by numerous factors that are beyond the control of the Company and that cannot be accurately predicted, such as market fluctuations, the proximity and capacity of milling facilities, mineral markets and processing equipment, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting minerals and environmental protection, the combination of which factors may result in the Company not receiving an adequate return of investment capital.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 89

The business of exploration for minerals and mining involves a high degree of risk. Few properties that are explored are ultimately developed into producing mines. There is no assurance that the mineral exploration and development activities of the Company will result in discoveries of commercial bodies of ore. The long-term profitability of the Company’s operations will in part be directly related to the costs and success of its exploration programs, which may be affected by a number of factors.

Substantial expenditures are required to establish reserves through drilling and to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although substantial benefits may be derived from the discovery of a major mineralized deposit, no assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that funds required for development can be obtained on a timely basis.

Changes to Beadell’s reserves and resources for the Tucano Gold Mine will be updated in the future and are likely to change during that process

The reserve and resource estimates for the Tucano Gold Mine will be updated in the future and are likely to change during that process. Factors that will influence these changes may include, but not be limited to, ongoing depletion from mining activities, changes to the reserve and resource modelling parameters, and additional drilling information. The overall impact of these updates is uncertain; however, Great Panther anticipates that it may result in a reduction of the reserve and resource figures reported by Beadell to the ASX on December 4, 2018.

Great Panther may not have discovered undisclosed liabilities of Beadell

In the course of the due diligence review of Beadell that Great Panther conducted prior to the execution of the Scheme Implementation Deed, Great Panther may not have discovered, or may have been unable to quantify, undisclosed liabilities of Beadell and its subsidiaries and the Company will not be indemnified for any of these liabilities. If Beadell has undisclosed liabilities, the Company as a successor owner may be responsible for such undisclosed liabilities. Such undisclosed liabilities could have an adverse effect on the business, results of operations, financial condition and cash flows of the Company and on the value of the Company’s common shares.

Ability to service debt

Great Panther has historically not had any material debt. However, after giving effect to the Scheme, Great Panther will assume certain indebtedness of Beadell as described elsewhere in this AIF. Great Panther’s ability to service this debt and other obligations will depend on its future performance and cash flows which to a certain extent are subject to general economic, financial, competitive, legislative, regulatory and other factors, including the price of gold, silver and other metals, many of which are beyond its control. Great Panther’s historical financial results (on a pro forma basis) have been, and it is anticipated that Great Panther’s future financial results will continue to be, subject to fluctuations. Cash flows can vary and the Company’s business may not generate sufficient cash flow from operations to enable it to satisfy its debt and other obligations. Any inability to secure sufficient debt funding (including to refinance on acceptable terms) or to service its existing and new debt may have a material adverse effect on Great Panther’s financial performance and prospects.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 90

Risks related to the Debenture Indenture

Beadell has 10,000 Beadell Convertible Debentures outstanding with an aggregate principal amount of $10,000,000, the terms of which are governed by the Debenture Indenture. In accordance with the Scheme, Great Panther has assumed the obligations of Beadell under the Debenture Indenture and the Beadell Convertible Debentures. The Debenture Indenture restricts the ability of Beadell, and will restrict the ability of Great Panther, to incur additional secured indebtedness. If Great Panther is unable to amend the terms of the Debenture Indenture, it may not be able to obtain additional secured debt financing on terms acceptable to it, or at all. In addition, following completion of the Transaction, Great Panther was required to make the Change of Control Purchase Offer, which, if accepted, will require Great Panther to repurchase the Beadell Convertible Debentures in accordance with the terms of the Debenture Indenture.

Litigation risk

All industries, including the mining industry, are subject to legal claims, with and without merit. The Company may become involved in legal disputes in the future. Defence and settlement costs can be substantial, even with respect to claims that have no merit. Due to the inherent uncertainty of the litigation process, the resolution of any particular legal proceeding may have a material effect on the Company’s financial position or results of operations.

The Company may be subject to governmental and regulatory investigations, civil claims, lawsuits and other proceedings in the ordinary course of its business. The results of these legal proceedings cannot be predicted with certainty due to the uncertainty inherent in regulatory actions and litigation, the difficulty of predicting decisions of regulators, judges and juries and the possibility that decisions may be reversed on appeal.

Management is committed to conducting business in an ethical and responsible manner, which it believes will reduce the risk of legal disputes. However, if the Company is subject to legal disputes, there can be no assurances that these matters will not have a material adverse effect on the Company’s business, financial condition, results of operations, cash flows or prospects.

Corruption and fraud in Brazil relating to ownership of real estate

Under Brazilian law, real property ownership is normally transferred by means of a transfer deed, and subsequently registered at the appropriate real estate registry office under the corresponding real property record. There are uncertainties, corruption and fraud relating to title ownership of real estate in Brazil, mostly in rural areas. In certain cases, a real estate registry office may register deeds with errors, including duplicate and/or fraudulent entries, and, therefore, deed challenges frequently occur, leading to judicial actions. Property disputes over title ownership are frequent in Brazil, and, as a result, there is a risk that errors, fraud or challenges could adversely affect the Company’s ability to operate, although ownership of mining rights are separate from ownership of land.

Restrictions to the acquisition of rural properties by foreign investors or Brazilian companies under foreign control

Non-resident individuals and non-domiciled foreign legal entities are subject to restrictions for the acquisition or lease for agricultural purpose, or arrendamento, of rural properties in Brazil. Limitations also apply to legal entities domiciled in Brazil controlled by foreign investors, such as the Company’s subsidiaries through which the Company will operate in Brazil. The limitations are set forth mainly in Law No. 5,709/1971 and in Decree No. 74,965/1974.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 91

Until 2010, limitations imposed on the acquisition of rural property did not apply to Brazilian companies under foreign control. However, an opinion issued by the General Counsel of the Federal Government Office of Brazil significantly changed the interpretation of the applicable laws at the time. Accordingly, Brazilian companies that have the majority of their capital stock owned by foreign individuals and legal entities domiciled abroad are deemed “foreign investors” for the purposes of application of the restrictions on the acquisition of rural property in Brazil. The legality of such opinion has been and is currently being challenged, however prior challenges to the opinion have been unsuccessful.

A foreign investor or a Brazilian company under foreign control may only acquire rural property in Brazil without breaching the aforementioned opinion if certain conditions are met, including, among others, prior approval by the Brazilian Ministries or, in certain cases, by the Brazilian Congress. Pursuant to applicable legislation, any agreements regarding the direct or indirect ownership of rural properties by foreign individuals or entities may be considered null and void, as well as any agreements regarding corporate changes which might result in indirect acquisition or arrendamento of rural lands by foreign investors. Accordingly, the Company’s ownership of any such rural properties in Brazil may be subject to legal challenges which could result in a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.

Termination of mining concessions

The Company’s mining concessions may be terminated in certain circumstances. Under the laws of Brazil, Mineral Resources belong to the federal government and governmental concessions are required to explore for, and exploit, Mineral Reserves. The Company will hold mining, exploration and other related concessions in each of the jurisdictions where the Company operates and where it will carry on development projects and prospects. The concessions the Company will hold in respect of its operations, development projects and prospects may be terminated under certain circumstances. Termination of any one or more of the Company’s mining, exploration or other concessions could have a material adverse effect on the Company’s financial condition or results of operations.

Inflation in Brazil

In the past, high levels of inflation have adversely affected the economies and financial markets of Brazil, and the ability of its government to create conditions that stimulate or maintain economic growth. Moreover, governmental measures to curb inflation and speculation about possible future governmental measures have contributed to the negative economic impact of inflation in Brazil and have created general economic uncertainty. As part of these measures, the Brazilian government has at times maintained a restrictive monetary policy and high interest rates that have limited the availability of credit and economic growth. Brazil may experience high levels of inflation in the future. Inflationary pressures may weaken investor confidence in Brazil and lead to further government intervention in the economy, including interest rate increases, restrictions on tariff adjustments to offset inflation, intervention in foreign exchange markets and actions to adjust or fix currency values, which may trigger or exacerbate increases in inflation, and consequently have an adverse impact on the Company. In an inflationary environment, the value of uncollected accounts receivable, as well as of unpaid accounts payable, declines rapidly. If Brazil experiences high levels of inflation in the future and price controls are imposed, the Company may not be able to adjust the rates the Company charges the Company’s customers to fully offset the impact of inflation on the Company’s cost structures, which could adversely affect the Company’s results of operations or financial condition.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 92

Fluctuations in the Price of Consumed Commodities

Prices and availability of commodities or inputs consumed or used in connection with exploration, development and mining, such as natural gas, diesel, oil, electricity, and reagents fluctuate and affect the costs of production at the Company’s operations. These fluctuations can be unpredictable, are beyond the control of the Company, can occur over short periods of time and may have a materially adverse impact on operating costs or the timing and costs of various projects.

Fluctuation in Foreign Currency Exchange Rates

The Company maintains bank accounts in Canadian, US, Australian, Mexican, Brazilian and Peruvian currencies. The Company earns revenue in US dollars while its costs are incurred in local currencies such the Canadian dollar, Australian dollar, Mexican peso, Brazilian real and Peruvian sol. An appreciation of these local currencies against the US dollar will increase operating, financing and capital expenditures as reported in US dollars. A decrease of these local currencies against the US dollar will result in a loss to the Company to the extent that the Company holds funds in such currencies.

The Company has, from time to time, used hedging instruments to manage its foreign exchange risk. Such instruments can be subject to material gains and losses.

Dependence on Key Personnel

The Company’s success and viability depends, in large part, on its ability to attract and maintain qualified key management personnel. Competition for such personnel is intense and may impact the ability to attract and retain such personnel. The Company’s growth and viability has depended, and will continue to depend, on the efforts of key personnel. The loss of any key personnel may have a material adverse effect on the Company, its business and its financial position. The Company has employment contracts with these employees but does not have key-man life insurance. The Company provides these employees with long-term incentive compensation which generally vests over several years and is designed to retain these employees and align their interests with those of the Company’s shareholders.

Conflicts of Interest of Directors and Officers

Certain of the Company’s directors and officers may continue to be involved in a wide range of business activities through their direct and indirect participation in corporations, partnerships or joint arrangements, some of which are in the same business as the Company. Situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Company. The directors and officers of the Company are required by law and the Company’s Code of Business Conduct and Ethics to act in the best interests of the Company. They may have the same obligations to the other companies and entities for which they act as directors or officers. The discharge by the directors and officers of their obligations to the Company may result in a breach of their obligations to these other companies and entities and, in certain circumstances, this could expose the Company to liability to those companies and entities. Similarly, the discharge by the directors and officers of their obligations to these other companies and entities could result in a breach of their obligation to act in the best interests of the Company. Such conflicting legal obligations may expose the Company to liability to others and impair its ability to achieve its business objectives.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 93

Concentration of Customers

The Company sells refined concentrates containing silver, gold, lead and zinc to metals traders and smelters. During the year ended December 31, 2018, three customers accounted for 96% of the Company’s revenues. The Company believes that a limited number of customers will continue to represent a significant portion of its total revenue. The Company does not consider itself economically dependent upon any single customer or combination of customers due to the existence of other potential metals traders or smelters capable of purchasing the Company’s supply. However, the Company could be subject to limited smelter availability and capacity, it could face the risk of a potential interruption of business from a third party beyond its control, or it may not be able to maintain its current significant customers or secure significant new customers on similar terms, any of which may have a material adverse effect on the Company’s business, financial condition, operating results and cash flows.

Risks Associated with Transportation and Storage of Doré or Concentrate

The doré and concentrates produced by the Company have significant value and are loaded onto road vehicles for transport to a refinery in Brazil, smelters in Mexico or to sea ports for export to smelters in foreign markets, such as Europe and Asia, where the metals are extracted. The geographic location of the Company’s operating mines in Brazil and Mexico, and air and trucking routes taken through the country to the refinery, smelters and ports for delivery, give rise to risks including doré or concentrate theft, road blocks and terrorist attacks, losses caused by adverse weather conditions, delays in delivery of shipments, and environmental liabilities in the event of an accident or spill.

Theft of Doré or Concentrate

The Company may have significant doré and concentrate inventories at its facilities or on consignment at other warehouses awaiting shipment. The Company has experienced theft of concentrates in the past and has taken additional steps to secure its doré and concentrate, whether in storage or in transit. The Company has insurance coverage; however, recovery of the full market value may not always be possible. Despite risk mitigation measures, there remains a continued risk that theft of doré or concentrate may have a material impact on the Company’s financial results.

Illegal Activity in the Countries in which the Company Operates Could Have an Adverse Effect on Operations

The Company’s primary mineral exploration and exploitation activities are conducted in Brazil, Mexico and Peru and are exposed to various levels of political, economic and other risks and uncertainties. These risks include but are not limited to, hostage taking, murder, illegal mining, high rates of inflation, corruption of government officials, blackmail, extortion and other illegal activity. Corruption of foreign officials could affect or delay required permits, service levels by foreign officials, and protection by police and other government services.

Mexico continues to undergo sometimes violent internal struggles between the government and organized crime with drug cartel relations and other unlawful activities. The number of kidnappings, violence and threats of violence throughout Mexico is of particular concern and appears to be on the rise. While the Company takes measures to protect both personnel and property, there is no guarantee that such measures will provide an adequate level of protection for the Company or its personnel. The occurrence of illegal activity against the Company or its personnel cannot be accurately predicted and could have an adverse effect on the Company’s operations.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 94

In January 2016, a small amount of explosives was stolen from the GMC. While the Company has taken additional security measures, there is no assurance that theft of explosives will not occur again. Explosives are highly regulated, and any theft or loss of explosives may be subject to investigation by Mexican regulatory authorities. The Mexican regulatory authorities may elect at their discretion to exercise administrative action during or after such an investigation. Administrative action could include fines and possibly suspension of the Company’s explosives permit during the investigation period or longer, which would negatively impact the Company’s operations.

Compliance with Anti-Corruption Laws

The Company's operations are governed by, and involve interaction with, many levels of government in Brazil, Mexico and Peru. The Company is subject to various anti-corruption laws and regulations such as the Canadian Corruption of Foreign Public Officials Act and the United States’ Foreign Corrupt Practices Act, each of which prohibit a company and its employees or intermediaries from bribing or making improper payments to foreign officials or other persons to obtain or retain business or gain some other business advantage. In addition, the Extractive Sector Transparency Measures Act recently introduced by the Canadian government contributes to global efforts to increase transparency and deter corruption in the extractive sector by requiring extractive entities active in Canada to publicly disclose, on an annual basis, specific payments made to all governments in Canada and abroad. According to Transparency International, Brazil, Mexico and Peru are each perceived as having fairly high levels of corruption relative to Canada. The Company cannot predict the nature, scope or effect of future regulatory requirements to which the Company's operations might be subject or the manner in which existing laws might be administered or interpreted.

Failure to comply with the applicable anti-corruption laws and regulations could expose the Company and its senior management to civil or criminal penalties or other sanctions, which could materially and adversely affect the Company's business, financial condition and results of operations. Likewise, any investigation of any alleged violations of the applicable anti-corruption legislation by Canadian or foreign authorities could also have an adverse impact on the Company's business, reputation, financial condition and results of operations. Although the Company has adopted policies to mitigate such risks, such measures may not be effective in ensuring that the Company, its employees or third-party agents will comply with such laws.

Acquisition Strategy

As part of Great Panther’s business strategy, the Company has made acquisitions in the past and continues to seek new acquisition opportunities in the Americas. The opportunities sought by the Company include operating mines, as well as exploration and development opportunities, with a primary focus on silver and/or gold. As a result, the Company may from time to time acquire additional mineral properties or the securities of issuers which hold mineral properties. In pursuit of such opportunities, the Company may fail to select appropriate acquisition candidates or negotiate acceptable arrangements, including arrangements to finance acquisitions or integrate the acquired businesses and their personnel into the Company, and may fail to assess the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates, or to achieve identified and anticipated operating and financial synergies, and may incur unanticipated costs, diversion of management attention from existing businesses, the potential loss of the Company’s key employees or of those of the acquired business. Acquisitions may also lead to the issuance of a large number of the Company’s common shares, which would result in dilution to existing shareholders. The Company cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or that any acquisitions or business arrangements completed will ultimately benefit the Company. Acquisitions may involve a number of special risks, circumstances or legal liabilities. These and other risks related to acquiring and operating acquired properties and companies could have a material adverse effect on the Company’s results of operations and financial condition. Further, to acquire properties and companies, the Company may be required to use available cash, incur debt, issue additional securities, enter into off-take, royalty agreements or metal streaming agreements, or a combination of any one or more of these. This could affect the Company’s future flexibility and ability to raise capital, to operate, explore and develop its properties and could dilute existing shareholders and decrease the price of the common shares of the Company. There may be no right for the Company’s shareholders to evaluate the merits or risks of any future acquisition undertaken by the Company, except as required by applicable laws and regulations.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 95

Community Relations and Social License to Operate

The Company’s relationship with the communities in which it operates is important to ensure the future success of its existing operations and the construction and development of its projects. While the Company believes its relationships with the communities in which it operates are strong, there is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations (“NGOs”), some of which oppose globalization and resource development, are often vocal critics of the mining industry and its practices. Adverse publicity generated by such NGOs or others related to extractive industries generally, or its operations specifically, could have an adverse effect on the Company’s reputation or financial condition and may impact its relationship with the communities in which it operates. While the Company believes that it operates in a socially responsible manner, there is no guarantee that the Company’s efforts in this respect will mitigate this potential risk.

Volatility of Share Price

Trading prices of Great Panther’s shares may fluctuate in response to a number of factors, many of which are beyond the control of the Company. In addition, the stock market in general, and the market for precious metals producers in particular has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of such companies. These broad market and industry factors may adversely affect the market price of the Company’s shares, regardless of operating performance.

In the past, following periods of volatility in the market price of a company’s securities, securities class-action litigation has been known to be initiated. Such litigation, if instituted, could result in substantial costs and a diversion of management’s attention and resources.

Substantial Decommissioning and Reclamation Costs

The Company reviews and reassesses its reclamation obligations at each of its mines based on updated mine life estimates, rehabilitation and closure plans. As at December 31, 2018, the Company had recorded a provision in the amount of $27 million for the estimated present value of future reclamation and remediation costs associated with the expected retirement of its mineral properties, plants, and equipment.

The costs of performing the decommissioning and reclamation must be funded by the Company’s operations. These costs can be significant and are subject to change. The Company cannot predict what level of decommissioning and reclamation may be required in the future by regulators. If the Company is required to comply with significant additional regulations or if the actual cost of future decommissioning and reclamation is significantly higher than current estimates, this could have an adverse impact on the Company’s future cash flows, earnings, results of operations and financial condition.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 96

Officers and Directors Are Indemnified Against All Costs, Charges and Expenses Incurred by Them

The Company’s articles contain provisions limiting the liability of its officers and directors for all acts, receipts, neglects or defaults of themselves and all the other officers or directors for any other loss, damage or expense incurred by the Company which happen in the execution of the duties of such officers or directors, as do indemnification agreements between the directors and officers and the Company. Such limitations on liability may reduce the likelihood of derivative litigation against the Company’s officers and directors and may discourage or deter shareholders from suing the officers and directors based upon breaches of their duties to the Company, though such an action, if successful, might otherwise benefit the Company and its shareholders.

Enforcement of Legal Actions or Suits

It may be difficult to enforce suits against the Company or its directors and officers. The Company is organized and governed under the laws of under the Business Corporations Act of British Columbia, Canada and is headquartered in this jurisdiction. Primarily all the Company’s directors and officers are residents of Canada, and all of the Company’s assets are located outside of the United States. Consequently, it may be difficult for United States investors to realize in the United States upon judgments of United States courts predicated upon civil liabilities under the United States Securities Exchange Act of 1934, as amended. There is substantial doubt whether an original action could be brought successfully in Canada against any of such persons predicated solely upon such civil liabilities.

Dilution of Shareholders’ Interests as a Result of Issuance of Incentive Stock Options, Restricted Share Units ("RSUs") and Deferred Share Units ("DSUs") to Employees, Directors, Officers and Consultants

The Company has granted, and in the future may grant, to directors, officers, insiders, employees, and consultants, options to purchase common shares as non-cash incentives to those persons. Such options have been, and may in future be, granted at exercise prices equal to market prices, or at prices as allowable under the policies of the TSX. The issuance of additional shares will cause existing shareholders to experience dilution of their ownership interests. As at December 31, 2018, there are outstanding share options exercisable into 6,461,067 common shares which, if exercised, would represent approximately 4% of the Company’s issued and outstanding shares as of that date.

The Company has also granted, and in the future may grant, to directors, officers, insiders, and employees, RSUs and DSUs as incentive awards for service to those persons. Upon settlement, these awards entitle the recipient to receive common shares, a cash equivalent, or combination thereof. The choice of settlement method is at the Company’s sole discretion. As at December 31, 2018, there are RSUs and DSUs outstanding which could result in the issuance of up to 985,067 common shares. If exercised, these would represent approximately 0.6% of the Company’s issued and outstanding shares as of that date.

If all these incentive awards are exercised and issued, such issuance will cause a reduction in the proportionate ownership and voting power of all other shareholders. The dilution may result in a decline in the market price of the Company’s common shares.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 97

Dilution of Shareholders’ Interests as a Result of Issuances of Additional Shares

Depending on the Company’s exploration, development and capital investment plans, acquisition activities, and operating and working capital requirements, the Company may issue additional common shares as a means of raising capital. In the event that the Company is required to issue additional shares or decides to enter into joint venture arrangements with other parties in order to raise financing through the sale of equity securities, investors’ interests in the Company will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold.

Trading of the Company’s Shares May Be Restricted by the SEC's “Penny Stock” Regulations Which May Limit a Stockholder’s Ability to Buy and Sell the Shares

The SEC has adopted regulations which generally define “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. The Company’s securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors” (as defined). The penny stock rules require a broker-dealer to provide very specific disclosure to a customer who wishes to purchase a penny stock, prior to the purchase. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade the Company’s securities.

The Company Does Not Expect to Declare or Pay Any Dividends

The Company has not declared or paid any dividends on its common stock since inception, and does not anticipate paying any such dividends for the foreseeable future.

Credit and Counterparty Risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations. The Company’s credit risk relates primarily to cash and cash equivalents, trade receivables in the ordinary course of business, and value added tax refunds primarily due from the Mexico taxation authorities, and other receivables. The Company sells and receives payment upon delivery of its concentrates primarily through international organizations. These are generally large and established organizations with good credit ratings. Payments of receivables are scheduled, routine and received within the specific terms of the contract. If a customer or counterparty does not meet its contractual obligations, or if they become insolvent, the Company may incur losses for products already shipped and be forced to sell greater volumes of concentrate than intended in the spot market, or there may be no market for the concentrates, and the Company’s future operating results may be materially adversely impacted as a result.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 98

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis and its expansion plans. As at December 31, 2018, the Company had net working capital (current assets in excess of current liabilities) of approximately $62 million, including approximately $51 million in cash and short term deposits, and no long-term debt. The Company believes it has sufficient net working capital to meet operating requirements as they arise for at least the next twelve months, but there can be no assurance that a sudden significant decrease in silver prices, or unforeseen liability, or other matter affecting the operations of the business might arise which will have a material impact on the Company’s sufficiency of cash reserves to meet operating requirements. As noted in previous sections, the Company is seeking to refinance certain Beadell debt facilities and will incur additional working capital needs in respect of the Beadell acquisition and integration. The adequacy of the Company’s working capital may depend on its ability to refinance these debt facilities and that expectations for Beadell’s working capital requirements are not exceeded. In addition, further acquisitions or significant change in capital plans could significantly change the cash and working capital required by the Company.

Internal Control over Financial Reporting

The Company documented and tested its internal control procedures during its most recent fiscal year in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act (“SOX”). SOX requires an annual assessment by management and an independent assessment by the Company’s independent auditors of the effectiveness of the Company’s internal control over financial reporting. For the year ended December 31, 2018, the Company qualified as an “emerging growth company” under the United States Securities Exchange Act of 1934 and therefore is eligible to forego the requirements for independent assessment of its internal control procedures under SOX. Notwithstanding, the Company has undergone an independent assessment of its internal control procedures under SOX for the year ended December 31, 2018 by its independent auditors, but to the extent it retains its “emerging growth company” status, may not do so in future periods.

The Company may fail to achieve and maintain the adequacy of its internal controls over financial reporting as such standards are modified, supplemented, or amended from time to time, and the Company may not be able to ensure that it can conclude on an ongoing basis that its internal controls over financial reporting are effective. The Company’s failure to maintain effective internal controls over financial reporting could result in the loss of investor confidence in the reliability of its financial statements, which in turn could harm the Company’s business and negatively impact the trading price of its common shares. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company’s operating results or cause it to fail to meet its reporting obligations. There can be no assurance that the Company will be able to remediate material weaknesses, if any, identified in future periods, or maintain all the controls necessary for continued compliance, and there can be no assurance that the Company will be able to retain sufficient skilled finance and accounting personnel, especially in light of the increased demand for such personnel among publicly traded companies. Future acquisitions of companies may provide the Company with challenges in implementing the required processes, procedures and controls in its acquired operations. Acquired companies may not have disclosure controls and procedures or internal control over financial reporting that are as thorough or effective as those required by the securities laws currently applicable to the Company.

No evaluation can provide complete assurance that the Company’s internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be reported. The effectiveness of the Company’s controls and procedures could also be limited by simple errors or faulty judgment. The challenges involved in implementing appropriate internal controls over financial reporting will likely increase with the Company’s plans for ongoing development of its business and this will require that the Company continues to improve its internal controls over financial reporting. Although the Company intends to devote substantial time and incur costs, as necessary, to ensure ongoing compliance, the Company cannot be certain that it will be successful in complying with SOX.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 99

Climate Change

Extreme weather events (for example, prolonged drought, or the increased frequency and intensity of storms) have the potential to disrupt the Company's operations and the transportation routes that the Company uses. The Company's ability to conduct mining operations depends upon access to the volumes of water that are necessary to operate its mines and processing facilities. Changes in weather patterns and extreme weather events, either due to normal variances in weather or due to global climate change, could adversely impact the Company's ability to secure the necessary volumes of water to operate its facilities.

The Coricancha mine has in the past experienced damage from flooding during periods of excessive rain. Increased precipitation, either due to normal variances in weather or due to global climate change, could result in flooding that may adversely impact mining operations and could damage the Company's facilities, plant and operating equipment.

Accordingly, extreme weather events and climate change may increase the costs of operations and may disrupt operating activities, either of which would adversely impact the profitability of the Company.

9. DIVIDENDS

Holders of the Company’s common shares are entitled to receive such dividends as may be declared from time to time by the board of directors, in its discretion, out of funds legally available for that purpose. The Company intends to retain future earnings, if any, for use in the operation and expansion of its business and does not intend to pay any cash dividends in the foreseeable future.

10. DESCRIPTION OF CAPITAL STRUCTURE

The Company’s authorized share capital consists of an unlimited number of common shares without par value, an unlimited number of Class A preferred shares without par value issuable in series, and an unlimited number of Class B preferred shares without par value issuable in series. As at December 31, 2018, the issued share capital consisted of 169,165,007 common shares. No Class A preferred shares or Class B preferred shares were issued or outstanding.

Common Shares

Subject to the rights of the holders of the Class A preferred shares and the Class B preferred shares of the Company, holders of common shares of the Company are entitled to dividends if, as and when declared by the directors. Holders of common shares of the Company are entitled to one vote per common share at meetings of shareholders except at meetings at which only holders of a specified class of shares are entitled to vote. Upon liquidation, dissolution or winding-up of the Company, subject to the rights of holders of the Class A preferred shares and the Class B preferred shares, holders of common shares of the Company are to share rateably in the remaining assets of the Company as are distributable to holders of common shares. The common shares are not subject to redemption or retraction rights, rights regarding purchase for cancellation or surrender, or any exchange or conversion rights.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 100

Class A Preferred Shares

Class A preferred shares may be issued from time to time in one or more series, and the directors may fix from time to time before such issue the number of Class A preferred shares of each series and the designation, rights and privileges attached thereto including any voting rights, dividend rights, redemption, purchase or conversion rights, sinking fund or other provisions. The Class A preferred shares rank in priority over common shares and any other shares ranking by their terms junior to the Class A preferred shares as to dividends and return of capital upon liquidation, dissolution or winding up of the Company or any other return of capital or distribution of the assets of the Company.

Class B Preferred Shares

Class B preferred shares may be issued from time to time in one or more series, and the directors may fix from time to time before such issue the number of Class B preferred shares of each series and the designation, rights and privileges attached thereto including any voting rights, dividend rights, redemption, purchase or conversion rights, sinking fund or other provisions. The Class B preferred shares rank in priority over common shares and any other shares ranking by their terms junior to the Class B preferred shares as to dividends and return of capital upon liquidation, dissolution or winding up of the Company or any other return of capital or distribution of the assets of the Company.

11. MARKET FOR SECURITIES

11.A. TRADING PRICE AND VOLUME

The Company’s common shares trade on the TSX and the NYSE American, trading under the symbols GPR and GPL, respectively.

The following table sets forth the price ranges in Canadian dollars and trading volume of the common shares of the Company as reported by the TSX for the periods indicated:

Period	High	Low	Volume
	C$	C$
January 2018	$1.86	$1.54	2,054,153
February 2018	$1.60	$1.40	1,164,736
March 2018	$1.64	$1.46	1,512,073
April 2018	$1.63	$1.45	1,587,059
May 2018	$1.68	$1.55	862,952
June 2018	$1.64	$1.50	1,164,883
July 2018	$1.53	$1.38	1,289,672
August 2018	$1.48	$1.02	1,082,935
September 2018	$1.30	$1.05	892,748
October 2018	$1.22	$0.82	2,238,313
November 2018	$0.87	$0.70	2,448,202
December 2018	$0.98	$0.74	2,135,938

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 101

The following table sets forth the price ranges in US dollars and trading volume of the common shares of the Company as reported by the NYSE American for the periods indicated:

Period	High	Low	Volume
	$	$
January 2018	$1.45	$1.25	14,496,668
February 2018	$1.29	$1.11	9,041,271
March 2018	$1.28	$1.13	10,070,804
April 2018	$1.28	$1.14	8,678,165
May 2018	$1.32	$1.20	6,484,151
June 2018	$1.26	$1.11	8,145,066
July 2018	$1.17	$1.08	8,219,250
August 2018	$1.16	$0.78	7,243,165
September 2018	$1.01	$0.80	7,114,614
October 2018	$0.94	$0.63	11,285,966
November 2018	$0.67	$0.54	11,728,061
December 2018	$0.72	$0.55	14,743,905

12. ESCROWED SECURITIES

As at December 31, 2018, there were no escrowed securities or securities subject to contractual restriction on transfer.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 102

13. DIRECTORS AND OFFICERS

13.A. NAMES, OCCUPATIONS AND SECURITY HOLDINGS

At the date of this AIF, the directors and executive officers of the Company are as follows:

Name, Residence	Office Held with the Company and Principal Occupation or Employment for the Past Five Years1	Director Since
R.W. (BOB) GARNETT, CPA, CA, ICD.D British Columbia, Canada	Board Chair and Director of the Company. Director of Media Valet Inc. (formerly VRX Worldwide Inc.) since 2009; Commissioner, Financial Institutions Commission May 2012 to June 2018; President of Sagebrush Golf and Sporting Club September 2012 to 2015 and CFO 2006 to 2012.	May 2011
JAMES M. BANNANTINE, PE, MBA British Columbia, Canada	President and Chief Executive Officer of the Company since August 2017; President and Chief Executive Officer of Aura Minerals Inc. from October 2011 to January 2017.	August 2017
ROBERT A. ARCHER, P.Geo. British Columbia, Canada	Chief Executive Officer of the Company from 2004 to August 2017. President of the Company from 2004 to 2012, and from May 2013 to August 2017. Non-Executive Director of Altair Resources Inc. (formerly named Altair Ventures Incorporated) from 2006 to 2014. President & Chief Executive Officer of Cangold Limited from 2003 to 2015. Director of Cangold from 2001 to 2015. Director of Newrange Gold Corp. since March, 2018, and Chief Executive Officer from January 2019. Director of Prize Mining Corporation from March 2018 to December 2018.	April 2004

¹ The information as to principal occupation has been furnished by the respective individuals.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 103

Name, Residence	Office Held with the Company and Principal Occupation or Employment for the Past Five Years1	Director Since
JOHN JENNINGS, MBA, CFA British Columbia, Canada	Director of the Company. Practice Lead, Director and Executive Search with WATSON Advisors Inc. since October 2017. Senior Client Partner, Korn Ferry International from 2012 to May 2017.	June 2012
W. JAMES MULLIN British Columbia, Canada	Director of the Company. Retired Professional Engineer in the province of British Columbia. Served as Senior Vice President of North American Operations for Newmont Mining Corporation until his retirement in 2001. During the five years prior to the date of this AIF, he has acted as an independent consultant in the mining industry, and owned and operated a mid-sized cattle ranch.	August 2013
ELISE REES, FCPA, FCA, ICD.D British Columbia, Canada	Director of the Company. Director of Enmax Corporation since September 2015; Westland Insurance since 2016; the Greater Vancouver Board of Trade since 2015; and Alcanna Inc. from August 2018 to February 2019. Market Leader and Managing Partner (TAS) BC at Ernst & Young LLP from 1998 to June 2016.	April 2017
JEFFREY R. MASON, B Com., CPA, CA, ICD.D British Columbia, Canada	Director of the Company. Independent Director Auryn Resources Inc. February 2018 to present; Independent Director Torq Resources Inc. September 2017 to present; Independent Director Amarc Resources Ltd. April 2003 to April 2018; Independent Director Libero Copper Corporation (Formerly Libero Mining Corporation) August 2008 to November 2018; Independent Director Hut 8 Mining Corp. (formerly, Oriana Resources Corporation) March 2018 to August 2018; Independent Director Red Eagle Mining Limited January 2010 to June 2018; Chief Financial Officer of Nickel Creek Platinum Corp.(formerly Wellgreen Platinum Ltd.) from November 2012 to July 2016 (Director from 2013 to 2015); The balance of Mr. Mason’s professional activities are spent providing financial and operations advisory consulting/employment services for mining, electrical power and construction.	June 2018

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 104

Name, Residence	Office Held with the Company and Principal Occupation or Employment for the Past Five Years1	Director Since
NICOLE ADSHEAD-BELL, B.Sc (Hons), Ph.D. British Columbia, Canada	Director of the Company. President of Cupel Advisory Corp. since March 2019, and previously 2015 to 2018. Chief Executive Officer and Managing Director of Beadell Resources Ltd. from July 2018 to March 2019. Director of Mining Research at Sun Valley Gold LLC from 2012 to 2015;Director of Pretium Resources Inc. from 2015 to 2018; Director of Dalradian Resources Inc. from 2015 to 2018; and Director of Lithium Americas Corp. from 2016 to 2017.	March 2019
JIM A. ZADRA, CPA, CA British Columbia, Canada	Chief Financial Officer and Corporate Secretary of the Company since July 2012.	N/A

On February 22, 2018, the Company announced the passing of Mr. Ken Major, a director of the Company.

Name, Residence	Office Held with the Company and Principal Occupation or Employment for the Past Five Years	Director Since
KENNETH W. MAJOR, P.Eng. British Columbia, Canada	Director of the Company. Director of Cangold Limited from December 2011 to May 2015; Independent mineral processing consultant for precious and base metals mining, KWM Consulting Inc. from 2006.	March 2011

The Board of Directors of the Company has four standing committees. The members of each committee are as follows:

Audit Committee	Elise Rees (Chair) R.W. (Bob) Garnett John Jennings Jeffrey Mason (as of June 7, 2018)
Human Resources and Compensation Committee	John Jennings (Chair) R.W. (Bob) Garnett James Mullin
Nominating and Corporate Governance Committee	James Mullin (Chair) Kenneth Major (until February 22, 2018) John Jennings (until June 7, 2018) Elise Rees (as of June 7, 2018) Jeffrey Mason (as of June 7, 2018)

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 105

Safety, Health and Environment Committee Kenneth Major (Chair, until February 22, 2018) James Mullin (Chair, until June 7, 2018) Jeffrey Mason (Chair, as of June 7, 2018) R.W. (Bob) Garnett Robert A. Archer

Each of the directors is elected to hold office until the next annual meeting of the Company or until a successor is duly elected or appointed. The next annual meeting of the Company is expected to be held in June 2019.

As of March 18, 2019, the directors and executive officers as a group beneficially own, directly or indirectly, or exercise control or direction over 2,416,090 common shares representing 0.88% of the common shares outstanding before giving effect to the exercise of options to purchase common shares held by such directors and executive officers. The statement as to the number of common shares beneficially owned, directly or indirectly, or over which control or direction is exercised by the directors and executive officers of the Company as a group is based upon information furnished by the directors and executive officers.

13.B. CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS

No director or executive officer of the Company is, or within the 10 years prior to the date of this AIF has been, a director, chief executive officer or chief financial officer of any company (including the Company), that, (i) was subject to a cease trade order or similar order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days that was issued while the director or executive officer was acting in the capacity as director, chief executive officer of chief financial officer; or (ii) was subject to a cease trade order or similar order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer of chief financial officer.

Other than disclosed below in relation to Mr. Jeffrey R. Mason, no director or executive officer of the Company, nor a shareholder holding a sufficient number of common shares of the Company to materially affect the control of the Company (i) is, at the date of this AIF or has been within the ten years before the date of the AIF, a director, or executive officer of any company (including the Company), that while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement, or compromise with creditors, or had a receiver, receiver manager, or trustee appointed to hold its assets; or (ii) has, within the ten years before the date of this AIF, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or comprise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, officer or shareholder.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 106

No director or executive officer of the Company, nor a shareholder holding a sufficient number of common shares of the Company to affect materially the control of the Company, has been subject to (i) any penalties or sanctions imposed by the court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

Mr. Mason was a director since March 2015 of the online shoe retailer Shoes.com Technologies Inc., a private BC company, and was a director since September 2016 of certain of its wholly-owned private subsidiary companies, including Shoes.com, Inc., a Delaware company, and Onlineshoes.com, Inc., a Washington company, but not, nor ever a director of Shoeme Technologies Limited, a Canadian Federal private company (together the “Shoes Private Companies”). In September 2016, following the resignation of the prior chief financial officer (“CFO”), Mr. Mason assumed the role of interim CFO of the Shoes Private Companies. Due in part to an increasing competitive landscape, the Shoes Private Companies became insolvent, and were not believed to be financeable. The boards of directors of the Shoes Private Companies determined that the interests of stakeholders would be best protected by placing the Shoes Private Companies into receivership in February 2017. Mr. Mason resigned as interim CFO and director of the Shoes Private Companies in February 2017.

Mr. Mason was a director of TSX-listed Company Red Eagle Mining Corporation (“Red Eagle”) commencing on Jan 1, 2010 continuing to his resignation on June 22, 2018. On November 9, 2018, Red Eagle’s secured lenders gave default notice and a demand letter under a secured credit facility and advised of their intention to appoint FTI Consulting as receiver over Red Eagle’s assets. Red Eagle had negotiated a restructuring, announced August 24, 2018, under which the secured lenders would write off a significant part of their debt to enable Red Eagle to recommence operations, but the restructuring was contingent upon a $38 million equity financing from Annibale SAC, personally guaranteed by its principal Fernando Palazuelo.  Annibale SAC defaulted on that commitment and as a result, the restructuring could not proceed.

13.C. CONFLICTS OF INTEREST

To the best of the Company’s knowledge, and other than as disclosed herein, there are no known existing or potential material conflicts of interest between the Company (or a subsidiary of the Company) and any director or officer of the Company (or a subsidiary of the Company), except that certain of the directors and officers serve as directors, officers or members of management of other public companies and therefore it is possible that a conflict may arise between their duties as a director or officer of the Company and their duties as a director, officer, promoter or member of management of such other companies.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 107

The directors and officers of the Company are aware of the existence of laws governing accountability of directors and officers for corporate opportunity and requiring disclosure by directors of conflicts of interest and the Company relies upon such laws in respect of any directors’ and officers’ conflicts of interest or in respect of any breaches of duty by any of its directors and officers. All such conflicts have been disclosed by such directors and officers in accordance with the Business Corporations Act (British Columbia) and they have governed themselves in respect thereof to the best of their ability in accordance with the obligations imposed upon them by law.

14. AUDIT COMMITTEE INFORMATION

14.A. AUDIT COMMITTEE CHARTER

The Audit Committee is ultimately responsible for the policies and practices relating to integrity of financial and regulatory reporting, as well as internal controls to achieve the objectives of safeguarding of corporate assets, reliability of information, and compliance with policies and laws.

The Audit Committee’s charter sets out its mandate and responsibilities, and is attached as Schedule A to this AIF.

14.B. MEMBERS OF THE AUDIT COMMITTEE

The members of the Company’s Audit Committee are Elise Rees, Bob Garnett, John Jennings and Jeffrey Mason. Each of these individuals are independent and financially literate within the meaning of National Instrument 52-110 "Audit Committees". The relevant education and experience of each Audit Committee member are outlined below:

Elise Rees, FCPA, FCA, ICD.D (Audit Committee Chair)

Ms. Rees is an experienced director, having served on the boards of a number of profit and not-for profit organizations, including as board chair, treasurer, and audit and finance committee chair. She currently sits on the boards of Enmax Corporation and Westland Insurance, as well as the Greater Vancouver Board of Trade. Ms. Rees retired in June 2016 after a thirty-five-year career in professional accountancy. She spent eighteen years as a partner with Ernst & Young, LLP with the last 14 years of her tenure focused on acquisitions, mergers and corporate reorganizations. She has a breadth of experience in a large variety of industries with specific focus on mining, infrastructure, transportation, technology, real estate, retail and distribution. Ms. Rees has been recognized for her leadership with the designation of Fellow Chartered Professional Accountant and Fellow Chartered Accountant in 2010; Community Builder Award, Association of Women in Finance (2012); Influential Woman in Business Award (2007); and the Ernst & Young Rosemarie Meschi Award for Advancing Gender Diversity (2007). She was also recognized as one of the Top 100 Most Powerful Women in Canada in 2015 by Women’s Executive Network. Ms. Rees has a B.A. (Hons) from the University of Strathclyde, Scotland and is a graduate of the ICD-Rotman Directors Education Program with the designation of ICD.D.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 108

R.W. (Bob) Garnett, CPA, CA, ICD.D

Mr. Garnett is a Chartered Professional Accountant in the Province of British Columbia (1973) and obtained a Bachelor of Arts (Commerce) from Simon Fraser University in 1972. In 2007, he completed the Certified Directors Program with the Institute of Corporate Directors with the designation of ICD.D. In 2012, he was appointed a Commissioner of the Financial Institutions Commission by the Lieutenant Governor in Council on the recommendation of the Minister of Finance of the Province of British Columbia, which appointment expired in June 2018. The Financial Institutions Commission is an agency of the provincial government, which administers nine statutes providing regulatory rules for the protection of the public in the province of British Columbia. Mr. Garnett also currently serves on the board of Media Valet Inc., a Vancouver based company that provides cloud based digital asset management software to many of the world’s leading brands. Mr. Garnett is also chair of the Audit Committee of Media Valet Inc. and has served as President of a world ranked golf facility located near Merritt, British Columbia from 2012 to 2015.

John Jennings, CFA

Mr. Jennings is employed as Practice Lead, Director and Executive Search with WATSON Advisors Inc., a leading boutique focused on corporate governance and recruiting board directors and executive talent since October 2017. Previously, he was a Senior Client Partner with Korn Ferry International, a global organizational and people advisory firm and the world’s largest provider of executive search from March 2012 to May 2017. Prior to that, his roles included executive leadership in real estate and in investment banking in Canada and the UK for twenty-six years. He earned a Master of Business Administration degree from London Business School, and a Bachelor of Science degree in Chemistry from Western University. He also holds the designation of Chartered Financial Analyst. Mr. Jennings is an experienced director, having served on the boards of a number of profit and not-for profit organizations, including as board chair, and audit and finance committee chair.

Jeffrey R. Mason, B Com., CPA, CA, ICD.D

Mr. Mason is a Chartered Professional Accountant and holds an Institute of Corporate Directors designation. Over the past 25 years he served on over 20 public company’s boards. He is experienced in exploration, development, construction and operation for silver, gold, copper, nickel, lead, zinc, platinum group metals and diamond projects in the Americas, Asia and Africa. In 2004 he was awarded the BC Ernst & Young Entrepreneur of the Year Award (Natural Resources Category). He also worked for 15 years for the Hunter Dickinson group, where he performed a variety of roles including Principal, Chief Financial Officer and Corporate Secretary. Mr. Mason served as Director and Audit Chair for eight years at Coastal Contacts Inc. (sold to Essilor International in 2014). He began his career with Deloitte LLP as a Chartered Accountant, followed by eight years at Homestake Mining Company (merged with Barrick Gold Corporation) and also served as Chief Financial Officer of Wellgreen Platinum Ltd. from 2012 to 2016. Mr. Mason also sits as an independent board member of Auryn Resources Inc. and Torq Resources Inc. The balance of Mr. Mason’s professional activities is spent providing financial and operations advisory consulting/employment services for mining, electrical power and construction. He is a graduate of the ICD-Rotman Directors Education Program with the designation of ICD.D.

14.C. PRE-APPROVAL POLICY

The Audit Committee has adopted specific policies for the engagement of non-audit services to be provided to the Company by the external auditor.

Annually, the Audit Committee pre-approves a budget for specified non-audit services within which limits the Company may contract the services of the Company’s external auditor.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 109

14.D. EXTERNAL AUDITOR SERVICE FEES

The following table sets out the aggregate fees billed to the Company by its external auditor, KPMG LLP, in each of the last two fiscal years:

Category	Year ended December 31, 20181	Year ended December 31, 20172
Audit Fees	C$ 371,000	C$ 380,700
Audit-Related Fees	Nil	Nil
Tax Fees	C$ 25,000	C$ 20,500
All Other Fees	C$ 32,000	Nil

“Audit Fees” include fees billed by the Company’s auditor related to the audits of the Company’s consolidated financial statements and internal control over financial reporting, and the reviews of the Company’s interim financial statements.

“Tax Fees” include fees for the preparation of the Company’s Canadian corporation income tax returns and related tax filings.

“All Other Fees” include fees for reviews of the Company’s filings made in relation to the acquisition of Beadell, as well as involvement with payroll audits of the Company’s Mexican subsidiaries.

15. LEGAL PROCEEDINGS AND REGULATORY ACTIONS

During the financial year ended December 31, 2018, the Company was not and is not currently a party to, nor is any of its property the subject of, any legal proceedings for which the outcome is expected by management to have a material adverse effect on the Company, nor, to the Company’s knowledge, is the Company to be a party to any contemplated legal proceedings, the outcome of which could have a material adverse effect on the Company.

There have been no penalties or sanctions imposed against the Company by a court relating to securities legislation or by a securities regulatory authority during the financial year ended December 31, 2018, or any other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor making an investment decision in the Company, and the Company has not entered into any settlement agreements before a court relating to securities legislation or with a securities regulatory authority during the financial year ended December 31, 2018.

¹ Fees billed for audit services are presented based on the fiscal period to which the audit services relate. Audit-related, Tax and Other fees are presented based on the period during which the services were rendered.

² Fees billed for audit services are presented based on the fiscal period to which the audit services relate. Audit-related, Tax and Other fees are presented based on the period during which the services were rendered.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 110

16. INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Other than as stated elsewhere in this AIF and in the consolidated financial statements for the year ended December 31, 2018, to the best of the Company’s knowledge, none of the Company’s directors, executive officers or any shareholder who beneficially owns or controls or directs, directly or indirectly, more than 10% of any class or series of voting securities of the Company, or any of their respective associates or affiliates, had any material interest, directly or indirectly, in any transaction within the three most recently completed financial years or during the current financial year that has materially affected or is reasonably expected to affect the Company.

17. TRANSFER AGENTS AND REGISTRARS

The transfer of the Company’s common shares is managed by Computershare Investor Services. The register of transfers for the common shares of the Company is located at 510 Burrard Street, 3rd Floor, Vancouver, British Columbia, Canada, V6C 3B9.

18. MATERIAL CONTRACTS

During the year ended December 31, 2018, the Company entered into a scheme implementation deed to acquire all of the issued ordinary shares of Beadell Resources Limited, a gold mining company that was listed on the Australian Securities Exchange, which owned the Tucano Gold Mine. The terms of the agreement are described in the above section 3.C “Significant Acquisitions”.

The Company is not at present party to any other material contracts, other than material contracts entered into in the ordinary course of business and upon which the Company’s business is not substantially dependent.

19. INTERESTS OF EXPERTS

The following is a list of the persons or companies named as having prepared or certified a report, valuation, statement or opinion described or included in a filing, or referred to in a filing, made under National Instrument 51-102 Continuous Disclosure Obligations by the Company during, or relating to, Company’s most recently completed financial year, and whose profession or business gives authority to the report, valuation, statement or opinion made by the person or company:

KPMG LLP

KPMG LLP is the external auditor of the Company and reported on the Company’s audited financial statements for the years ended December 31, 2018 and 2017 filed on SEDAR.

Golder Associates Inc.

The information in the Coricancha section of the AIF is based on the technical report entitled “Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex”, dated July 13, 2018. The Technical Report was submitted by Golder Associates Inc. as Report Assembler of the work prepared by or under the supervision of the following Qualified Persons named as authors: Ronald Turner, MAusIMM CP(Geo); Daniel Saint Don, P.Eng.; and Jeffrey Woods, P.E.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 111

AMC Mining Consultants (Canada) Ltd.

The information in the Tucano section of the AIF is based on the technical report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine”, dated October 31, 2018. The Technical Report was submitted by AMC Mining Consultants (Canada) Ltd. as Report Assembler of the work prepared by or under the supervision of the following Qualified Persons named as co-authors: Brian Richard Wolfe, MAIG; Nigel Arthur Spicer, C.Eng., MIMMM; Marcelo Antonio Batelochi, MAusIMM (CP); Ruy Lacourt Rodrigues, SME-RM; Juan Jose Moreno Dellepiane, MIEAust, CPEng.; Peter Robin O’Bryan, MAusIMM (CP); Raymond Henry Walton, P.Eng.; and Gary Methven, P.Eng.

Robert F. Brown, P. Eng.

Robert F. Brown authored the February 28, 2019 technical report under NI 43-101 on the Topia Mine Mineral Resource Estimates and the NI 43-101 Technical Report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”, dated February 25, 2017. Robert Brown was the VP Exploration of the Company from September 2007 until December 2016, and returned to the Company as Qualified Person and Acting Vice President Exploration in May 2018.

Matthew C. Wunder, P. Geo.

Matthew C. Wunder authored the February 28, 2018 NI 43-101 technical report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine and San Ignacio Mine, Guanajuato State, Mexico”, dated February 28, 2018, and supervised the preparation of certain technical information set forth herein relating to the Company’s mineral properties. Mr. Wunder was the Qualified Person and VP Exploration of the Company from May 2017 to April 2018.

To the Company’s knowledge, each of the aforementioned firms or persons did not hold more than 1% of the outstanding securities of the Company or of any associate or affiliate of the Company when they prepared the reports referred to above or following the preparation of such reports. None of the aforementioned firms or persons received any direct or indirect interest in any securities of the Company or of any associate or affiliate of the Company in connection with the preparation of such reports.

Based on information provided by the relevant persons, none of the aforementioned firms or persons, nor any directors, officers or employees of such firms are currently expected to be elected, appointed or employed as a director, officer or employee of the Company or of any associate or affiliate of the Company.

KPMG LLP are the auditors of the Company and have confirmed with respect to the Company that they are independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations and also that they are independent accountants with respect to the Entity under all relevant US professional and regulatory standards.

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 112

20. ADDITIONAL INFORMATION

Additional information relating to the Company may be found on SEDAR at www.sedar.com.

Additional information including directors’ and officers’ remuneration and indebtedness, principal holders of the Company’s securities, and securities authorized for issuance under equity compensation plans, as applicable, is contained in the Company’s information circular for its most recent annual general meeting.

Additional financial information is provided in the Company’s audited financial statements and MD&A for the year ended December 31, 2018 which may be obtained upon request from Great Panther’s head office, or may be viewed on the Company’s website (www.greatpanther.com) or on the SEDAR website (www.sedar.com).

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 113

SCHEDULE “A” CHARTER OF THE AUDIT COMMITTEE

GREAT PANTHER MINING LIMITED (the "Company")

CHARTER OF THE AUDIT COMMITTEE

Article 1. Mandate

The mandate of the Audit Committee (the "Committee") of the board of directors (the "Board") of the Company is to:

(a) assist the Board in fulfilling its oversight responsibilities in respect of:

(i) the quality and integrity of the Company's financial statements, financial reporting processes and systems of internal controls and disclosure controls regarding risk management, finance, accounting, and legal and regulatory compliance;

(ii) the independence and qualifications of the Company's external auditors;

(iii) the Audit Committee shall require the rotation of the audit partner every five years as required under Section 203 of the Sarbanes-Oxley Act of 2002 and require that the External Auditor provide a plan for the orderly transition of audit engagement team members;

(iv) the review of the periodic audits performed by the Company's external auditors and the Company's internal accounting department; and

(v) the development and implementation of policies and processes in respect of corporate governance matters;

(b) provide and establish open channels of communication between the Company's management, internal accounting department, external auditor and directors;

(c) prepare all filings and disclosure documents required to be prepared by the Committee and/or the Board pursuant to all applicable federal, provincial and state securities legislation and the rules and regulations of all securities commissions having jurisdiction over the Company;

(d) review and confirm the adequacy of procedures for the review of all public disclosure of financial information extracted or derived from the Company's financial statements, and to periodically assess the adequacy of those procedures; and

(e) establish procedures for:

(i) the receipt, retention and treatment of complaints or concerns received by the Company regarding accounting, internal accounting controls or auditing matters, including, but not limited to, concerns about questionable accounting or auditing practices; and

(ii) the confidential, anonymous submission by employees of the Company of such complaints or concerns.

The Committee will primarily fulfil its mandate by performing the duties set out in Article 7 hereof.

The Board and management of the Company will ensure that the Committee has adequate funding to fulfil its mandate.

Last reviewed by the Audit Committee on October 29, 2017 

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 114

While the Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Committee to plan or conduct audits, or to determine that the Company's financial statements are complete and accurate or are in accordance with generally accepted accounting principles, accounting standards or applicable laws and regulations. This is the responsibility of Company's management, internal accounting department and external auditors. Because the primary function of the Committee is oversight, the Committee will be entitled to rely on the expertise, skills and knowledge of the Company's management, internal accounting department, external auditors and other external advisors and the integrity and accuracy of information provided to the Committee by such persons in carrying out its oversight responsibilities. Nothing in this Charter is intended to change or in any way limit the responsibilities and duties of Company's management, internal accounting department or external auditors.

Article 2. Composition

The Committee will be comprised of members of the Board, the number of which will be determined from time to time by resolution of the Board. The composition of the Committee will be determined by the Board such that the membership and independence requirements set out in the rules and regulations, in effect from time to time, of any securities commissions (including, but not limited to, the Securities and Exchange Commission and the British Columbia Securities Commission) and any exchanges upon which the Company's securities are listed (including, but not limited to, the Toronto Stock Exchange and the NYSE American) are satisfied (the said securities commissions and exchanges are hereinafter collectively referred to as the "Regulators").

Article 3. Term of Office

The members of the Committee will be appointed or re-appointed by the Board on an annual basis. Each member of the Committee will continue to be a member thereof until such member's successor is appointed, or until such member resigns or is removed by the Board. The Board may remove or replace any member of the Committee at any time. However, a member of the Committee will automatically cease to be a member of the Committee upon either ceasing to be a director of the Board or ceasing to meet the requirements established, from time to time, by any Regulators. Vacancies on the Committee will be filled by the Board.

Article 4. Committee Chair

The Board, or if it fails to do so, the members of the Committee, will appoint a chair from the members of the Committee. If the chair of the Committee is not present at any meeting of the Committee, an acting chair for the meeting will be chosen by majority vote of the Committee from among the members present. In the case of a deadlock in respect of any matter or vote, the chair will refer the matter to the Board for resolution. The Committee may appoint a secretary who need not be a member of the Board or Committee.

Article 5. Meetings

The time and place of meetings of the Committee and the procedures at such meetings will be determined, from time to time, by the members thereof, provided that:

(a) a quorum for meetings will be two members, present in person or by telephone or other telecommunication device that permits all persons participating in the meeting to speak to and hear each other. The Committee will act on the affirmative vote of a majority of members present at a meeting at which a quorum is present. The Committee may also act by unanimous written consent in lieu of meeting;

(b) the Committee may meet as often as it deems necessary, but will not meet less than once annually;

Last reviewed by the Audit Committee on October 29, 2017 

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 115

(c) notice of the time and place of every meeting will be given in writing and delivered in pursuing or by facsimile or other means of electronic transmission to each member of the Committee at least 72 hours prior to the time of such meeting; and

(d) the Committee will maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board. The Committee will make regular reports of its meetings to the Board, directly or through its chair, accompanied by any recommendations to the Board approved by the Committee.

Article 6. Authority

The Committee will have the authority to:

(a) retain (at the Company’s expense) its own legal counsel, accountants and other consultants that the Committee believes, in its sole discretion, are needed to carry out its duties and responsibilities;

(b) conduct investigations that it believes, in its sole discretion, are necessary to carry out its responsibilities;

(c) take whatever actions it deems appropriate, in its sole discretion, to foster an internal culture within the Company that results in the development and maintenance of a superior level of financial reporting standards, sound business risk practices and ethical behaviour; and

(d) request that any director, officer or employee of the Company, or other persons whose advice and counsel are sought by the Committee (including, but not limited to, the Company’s legal counsel and the external auditors) meet with the Committee and any of its advisors and respond to their inquiries.

Article 7. Specific Duties

In fulfilling its mandate, the Committee will, among other things:

(a) (i) select the external auditors, based upon criteria developed by the Committee; (ii) approve all audit and non-audit services in advance of the provision of such services and the fees and other compensation to be paid to the external auditors; (iii) oversee the services provided by the external auditors for the purpose of preparing or issuing an audit report or related work; and (iv) review the performance of the external auditors, including, but not limited to, the partner of the external auditors in charge of the audit, and, in its discretion, approve any proposed discharge of the external auditors when circumstances warrant, and appoint any new external auditors. Notwithstanding any other provision of this Charter, the external auditor will be ultimately accountable to the Board and the Committee, as representatives of the shareholders of the Company, and those representatives will have the ultimate authority and responsibility to select, evaluate and, where appropriate, replace the external auditor (or to nominate the external auditor to be proposed for shareholder approval);

(b) periodically review and discuss with the external auditors all significant relationships that the external auditors have with the Company to determine the independence of the external auditors. Without limiting the generality of the foregoing, the Committee will ensure that it receives, on an annual basis, a formal written statement from the external auditors that sets out all relationships between the external auditor and the Company, and receives an opinion on the financial statements consistent with all professional standards that are applicable to the external auditors (including, but not limited to, those established by any securities legislation and regulations, the Canadian Institute of Chartered Professional Accountants – Chartered Accountants, Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) and the American Institute of Certified Public Accountants, and those set out in the International Financial Reporting Standards as issued by the International Accounting Standards Board);

Last reviewed by the Audit Committee on October 29, 2017 

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 116

(c) evaluate, in consultation with the Company's management, internal accounting department and external auditors, the effectiveness of the Company’s processes for assessing significant risks or exposures and the steps taken by management to monitor, control and minimize such risks; and obtain, annually, a letter from the external auditors as to the adequacy of such controls;

(d) consider, in consultation with the Company's external auditors and internal accounting department, the audit scope and plan of the external auditors and the internal accounting department;

(e) coordinate with the Company's external auditors the conduct of any audits to ensure completeness of coverage and the effective use of audit resources;

(f) assist in the resolution of disagreements between the Company's management and the external auditors regarding the preparation of financial statements; and in consultation with the external auditors, review any significant disagreement between management and the external auditors in connection with the preparation of the financial statements, including management’s responses thereto;

(g) after the completion of the annual audit, review separately with each of the Company's management, external auditors and internal accounting department the following:

(i) the Company’s annual financial statements and related footnotes;

(ii) the external auditors’ audit of the financial statements and their report thereon;

(iii) any significant changes required in the external auditors’ audit plan;

(iv) any significant difficulties encountered during the course of the audit, including, but not limited to, any restrictions on the scope of work or access to required information;

(v) the Company’s guidelines and policies governing the process of risk assessment and risk management; and

(h) other matters related to the conduct of the audit that must be communicated to the Committee in accordance with the standards of any regulatory body (including, but not limited to, securities legislation and regulations, the Canadian Institute of Chartered Professional Accountants, International Financial Reporting Standards as issued by the International Accounting Standards Board, Canadian generally accepted auditing standards, the United States Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants);

(i) consider and review with the Company's external auditors (without the involvement of the Company's management and internal accounting department):

(i) the adequacy of the Company’s internal controls and disclosure controls, including, but not limited to, the adequacy of computerized information systems and security;

(ii) the truthfulness and accuracy of the Company’s financial statements; and

(iii) any related significant findings and recommendations of the external auditors and internal accounting department, together with management’s responses thereto;

(j) consider and review with the Company's management and internal accounting department:

(i) significant findings during the year and management’s responses thereto;

(ii) any changes required in the planned scope of their audit plan;

Last reviewed by the Audit Committee on October 29, 2017 

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 117

(iii) the internal accounting department's budget and staffing; and

(iv) the internal auditor department’s compliance with the appropriate internal auditing standards;

(k) establish systems for the regular reporting to the Committee by each of the Company's management, external auditors and internal accounting department of any significant judgments made by management in the preparation of the financial statements and the opinions of each as to appropriateness of such judgments;

(l) review (for compliance with the information set out in the Company's financial statements and in consultation with the Company's management, external auditors and internal accounting department, as applicable) all filings made with Regulators and government agencies, and other published documents that contain the Company’s financial statements before such filings are made or documents published (including, but not limited to: (i) any certification, report, opinion or review rendered by the external auditors; (ii) any press release announcing earnings (especially those that use the terms "pro forma", "adjusted information" and "not prepared in compliance with generally accepted accounting principles"); and (iii) all financial information and earnings guidance intended to be provided to analysts, the public or to rating agencies);

(m) prepare and include in the Company’s annual proxy statement or other filings made with Regulators any report from the Committee or other disclosures required by all applicable federal, provincial and state securities legislation and the rules and regulations of Regulators having jurisdiction over the Company;

(n) review with the Company's management: (i) the adequacy of the Company's insurance and fidelity bond coverage, reported contingent liabilities and management’s assessment of contingency planning; (ii) management’s plans in respect of any changes in accounting practices or policies and the financial impact of such changes; (iii) any major areas in that, in management’s opinion, have or may have a significant effect upon the financial statements of the Company; and (iv) any litigation or claim (including, but not limited to, tax assessments) that could have a material effect upon the financial position or operating results of the Company;

(o) at least annually, review with the Company’s legal counsel and accountants all legal, tax or regulatory matters that may have a material impact on the Company’s financial statements, operations and compliance with applicable laws and regulations;

(p) review and update periodically a Code of Ethics and Business Conduct for the directors, officers and employees of the Company; and review management’s monitoring of compliance with the Code of Ethics and Business Conduct;

(q) review and update periodically the procedures for the receipt, retention and treatment of complaints and concerns by employees received by the Company regarding accounting, internal accounting controls or auditing matters, including, but not limited to, concerns regarding questionable accounting or auditing practices;

(r) consider possible conflicts of interest between the Company's directors and officers and the Company; and approve for such parties, in advance, all related party transactions;

(s) review policies and procedures in respect of the expense accounts of the Company's directors and officers, including, but not limited to, the use of corporate assets;

(t) review annually and update this Charter and recommend any proposed changes to the Board for approval, in accordance with the requirements of all applicable federal, provincial and state securities legislation and the rules and regulations of Regulators having jurisdiction over the Company; and

Last reviewed by the Audit Committee on October 29, 2017

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 118

(u) perform such other functions, consistent with this Charter, the Company’s constating documents and governing laws, as the Committee deems necessary or appropriate.

Last presented by the Audit Committee for review and approval to, and so approved by, the Board of Directors on October 29, 2017 (prior dates being November 3, 2015 and October 1, 2014).

Last reviewed by the Audit Committee on October 29, 2017

Great Panther Mining Limited Annual Information Form for the year ended December 31, 2018 119

EX-99.2

Exhibit 99.2

  

GREAT PANTHER SILVER LIMITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED

DECEMBER 31, 2018 and 2017

Expressed in US Dollars

GREAT PANTHER SILVER LIMITED

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

Management of Great Panther Silver Limited is responsible for the presentation and preparation of the accompanying consolidated financial statements of Great Panther Silver Limited and all related financial information contained in the Annual Report, including Management’s Discussion and Analysis.

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. They include certain amounts that are based on estimates and judgments of management. Financial information presented elsewhere in the Annual Report is consistent with that contained in the consolidated financial statements.

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, management has a process in place to evaluate internal control over financial reporting based on the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"), the Internal Control-Integrated Framework. We, as Chief Executive Officer and Chief Financial Officer, will certify our annual filings with the CSA and SEC as required in Canada by National Instrument 52-109 and in the United States as required by the Securities Exchange Act of 1934.

The Company’s Audit Committee is appointed by the Board of Directors annually and is comprised of four independent directors. The Audit Committee meets quarterly to review the Company’s consolidated financial statements and Management’s Discussion and Analysis, and on an annual basis, the independent auditors’ report. The Audit Committee recommends to the Board of Directors the independent auditors to be appointed by the shareholders at each annual meeting and reviews the independence and effectiveness of their work. The independent auditors have unrestricted access to the Company, the Audit Committee, and the Board of Directors.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (the “Exchange Act”).

Under the supervision and with the participation of our Company's Chief Executive Officer and Chief Financial Officer, management conducted an evaluation of the effectiveness of our internal control over financial reporting, as of December 31, 2018, based on the framework set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"). Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2018.

KPMG LLP, an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting as of December 31, 2018, as stated in their report which appears herein.

/s/ James M. Bannantine	/s/ Jim A. Zadra
Chief Executive Officer	Chief Financial Officer
February 28, 2019	February 28, 2019

2

 

KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax            (604) 691-3031 Internet      www.kpmg.ca

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of Great Panther Silver Limited:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Great Panther Silver Ltd. (the Company) as of December 31, 2018 and 2017, the related consolidated statements of operations and comprehensive income (loss), changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2018, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and its financial performance and its cash flows for each of the years in the two-year period ended December 31, 2018, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 28, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 3 to the consolidated financial statements, the Company has changed its accounting policies for revenue and financial instruments as of January 1, 2018 due to the adoption of IFRS 15 - Revenue from contracts with customers and IFRS 9 - Financial instruments.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

We are uncertain as to the year we or our predecessor firms began serving consecutively as the auditor of the Company’s financial statements; however, we are aware that we have been Great Panther Silver Limited’s auditor consecutively since at least 1997.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

 

KPMG LLP (signed)

Chartered Professional Accountants

Vancouver, Canada

February 28, 2019

 

KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax            (604) 691-3031 Internet      www.kpmg.ca

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Great Panther Silver Limited:

Opinion on Internal Control Over Financial Reporting

We have audited Great Panther Silver Ltd.’s (the Company) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2018 and 2017, the related consolidated statements of operations and comprehensive income (loss), changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2018, and the related notes (collectively, the consolidated financial statements), and our report dated February 28, 2019 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Responsibility for Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

KPMG LLP (signed)

Chartered Professional Accountants

Vancouver, Canada

February 28, 2019

GREAT PANTHER SILVER LIMITED

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in thousands of US dollars)

As at December 31, 2018 and 2017

	December 31,			December 31,
	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	24,524		$	36,797
Short-term deposits		26,057			20,091
Trade and other receivables (note 5)		8,887			14,780
Inventories (note 6(a))		4,828			5,294
Loan receivable (note 7)		5,048			–
Reimbursement rights (note 10)		6,385			4,446
Derivative assets (note 12)		738			–
Other current assets		504			401
		76,971			81,809
Restricted cash (note 9(a))		1,237			1,234
Inventories – non-current (note 6(b))		1,420			1,580
Reimbursement rights (note 10)		4,470			6,588
Mineral properties, plant and equipment (note 8)		13,391			14,966
Exploration and evaluation assets (note 9)		15,065			15,633
Deferred tax assets (note 17)		222			70
	$	112,776		$	121,880
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade payables and accrued liabilities (note 11)	$	10,647		$	11,313
Derivative liabilities (note 12)		–			85
Reclamation and remediation provision – current (note 13)		4,473			4,446
		15,120			15,844
Reclamation and remediation provision (note 13)		22,947			22,965
Deferred tax liabilities (note 17)		2,053			1,930
		40,120			40,739
Shareholders’ equity:
Share capital (note 14)		130,912			130,201
Reserves		19,829			18,962
Deficit		(78,085	)		(68,022	)
		72,656			81,141
	$	112,776		$	121,880

The accompanying notes are an integral part of these consolidated financial statements.

Nature of operations (note 1)

Commitments and contingencies (note 21)

Subsequent events (notes 7 and 21(b))

Approved by the Board of Directors

“Robert W. Garnett”	“Elise Rees”
Robert W. Garnett, Director	Elise Rees, Director

4

GREAT PANTHER SILVER LIMITED

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

	2018			2017
Revenue (notes 3(q) and 16)	$	59,434		$	63,746
Cost of sales
Production costs		47,414			41,752
Amortization and depletion		3,462			3,878
Share-based compensation		373			427
		51,249			46,057
Mine operating earnings		8,185			17,689
General and administrative expenses
Administrative expenses		5,338			6,818
Amortization and depletion		111			76
Share-based compensation		940			928
		6,389			7,822
Exploration, evaluation and development expenses
Exploration and evaluation expenses (note 24)		11,329			7,475
Mine development costs		1,716			1,991
Share-based compensation		8			58
		13,053			9,524
Finance and other income (expense)
Interest income		1,518			808
Finance costs		(20	)		(171	)
Accretion expense		(897	)		(791	)
Foreign exchange gain		1,067			2,292
Other income		178			275
		1,846			2,413
Income (loss) before income taxes		(9,411	)		2,756
Income tax expense (note 17)		652			1,466
Net income (loss) for the year	$	(10,063	)	$	1,290
Earnings (loss) per share – basic and diluted (note 15)	$	(0.06	)	$	0.01

The accompanying notes are an integral part of these consolidated financial statements.

5

GREAT PANTHER SILVER LIMITED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Expressed in thousands of US dollars)

For the years ended December 31, 2018 and 2017

	2018			2017
Net income (loss) for the year	$	(10,063	)	$	1,290
Other comprehensive income (loss) (“OCI”), net of tax
Foreign currency translation		(15	)		(11	)
Change in fair value of financial assets designated as fair value through OCI, net of  tax		(1	)		(6	)
		(16	)		(17	)
Total comprehensive income (loss) for the year	$	(10,079	)	$	1,273

The accompanying notes are an integral part of these consolidated financial statements.

6

GREAT PANTHER SILVER LIMITED

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

	Share capital				Reserves
	Number of common shares (000's)		Amount		Share options and warrants			Foreign currency translation			Fair value			Total reserves			Retained earnings (deficit)			Total shareholder's equity
Balance at January 1, 2017		166,938	$	128,485	$	15,086		$	3,204		$	(175	)	$	18,115		$	(69,312	)	$	77,288
Share options exercised		1,445		1,716		(549	)		–			–			(549	)		–			1,167
Share-based compensation		–		–		1,413			–			–			1,413			–			1,413
Comprehensive income (loss)		–		–		–			(11	)		(6	)		(17	)		1,290			1,273
Balance at December 31, 2017		168,383	$	130,201	$	15,950		$	3,193		$	(181	)	$	18,962		$	(68,022	)	$	81,141
Balance at January 1, 2018		168,383	$	130,201	$	15,950		$	3,193		$	(181	)	$	18,962		$	(68,022	)	$	81,141
Share options exercised		590		505		(156	)		–			–			(156	)		–			349
Restricted and deferred share units settled		192		206		(282	)		–			–			(282	)		–			(76	)
Share-based compensation		–		–		1,321			–			–			1,321			–			1,321
Comprehensive loss		–		–		–			(15	)		(1	)		(16	)		(10,063	)		(10,079	)
Balance at December 31, 2018		169,165	$	130,912	$	16,833		$	3,178		$	(182	)	$	19,829		$	(78,085	)	$	72,656

The accompanying notes are an integral part of these consolidated financial statements.

7

GREAT PANTHER SILVER LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of US dollars)

For the years ended December 31, 2018 and 2017

	2018			2017
Cash flows from operating activities:
Net income (loss) for the year	$	(10,063	)	$	1,290
Items not involving cash:
Amortization and depletion		3,573			3,954
Unrealized foreign exchange gain		(926	)		(159	)
Income tax expense		652			1,466
Share-based compensation		1,321			1,413
Other non-cash items (note 23)		(774	)		(39	)
Interest received		1,185			765
Interest paid		(38	)		(134	)
Income taxes paid		(1,652	)		(2,187	)
		(6,722	)		6,369
Changes in non-cash working capital:
Trade and other receivables		6,357			(3,688	)
Inventories		510			355
Other current assets		(105	)		135
Trade payables and accrued liabilities		287			2,532
Net cash provided by operating activities		327			5,703
Cash flows from investing activities:
Investments in short-term deposits, net		(5,965	)		(5,071	)
Loan advanced to Beadell (note 7)		(5,000	)		–
Additions to mineral properties, plant and equipment		(2,069	)		(5,265	)
Cash received upon acquisition of Coricancha (note 9(a))		–			105
Cash restricted for Coricancha environmental bond (note 9(a))		–			(1,234	)
Other		–			186
Net cash used in investing activities		(13,034	)		(11,279	)
Cash flows from financing activities:
Proceeds from exercise of share options		349			1,207
Net cash from financing activities		349			1,207
Effect of foreign currency translation on cash and cash equivalents		85			(476	)
Decrease in cash and cash equivalents		(12,273	)		(4,845	)
Cash and cash equivalents, beginning of year		36,797			41,642
Cash and cash equivalents, end of year	$	24,524		$	36,797

Supplemental cash flow information (note 23)

The accompanying notes are an integral part of these consolidated financial statements.

8

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

1. NATURE OF OPERATIONS

Great Panther Silver Limited (the “Company” or “Great Panther”) is a public company which is listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE American trading under the symbol GPL and is incorporated and domiciled in Canada. The Company’s registered and records office is located at 1330 – 200 Granville Street, Vancouver, BC.

The Company’s wholly-owned mining operations in Mexico are the Topia Mine (“Topia”), and the Guanajuato Mine Complex (“GMC”) which comprises the Company’s Guanajuato Mine, the San Ignacio Mine (“San Ignacio”), and the Cata processing plant. The Topia Mine is located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico, and produces concentrates containing silver, gold, lead and zinc. The GMC produces silver and gold concentrate and is located in central Mexico approximately 30 kilometres from the Guanajuato International Airport.

In June 2017, Great Panther acquired the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead-zinc mine and 600 tonnes per day processing facility, located in the central Andes of Peru, approximately 90 kilometres east of Lima, and has been on care and maintenance since August 2013 (note 9(a)). The Company filed a positive Preliminary Economic Assessment on Coricancha in July 2018, and is undertaking a trial stope and bulk sample program (the “Bulk Sample Program” or “BSP”) in order to further de-risk the project. Following the completion of the BSP, the Company expects to be able to make a decision by the end of March 2019 on whether to commence the restart of Coricancha.

On September 23, 2018, the Company announced the signing of a scheme implementation deed (the "Implementation Deed") pursuant to which the Company has agreed to acquire all of the issued ordinary shares of Beadell Resources Limited (“Beadell”), a gold mining company listed on the Australian Securities Exchange and which operates the 100% owned Tucano Gold Mine (“Tucano”) in Amapá state, northern Brazil. On February 11 and 12, 2019, respectively, both the Company’s and Beadell’s shareholders approved the scheme. On February 15, 2019, the transaction was approved by the Supreme Court of Western Australia. Closing of the transaction is expected the first week of March 2019 following completion of customary closing requirements. Note 21(b) provides additional details of the transaction.

The Company also owns several exploration properties: El Horcón, Santa Rosa, and Plomo in Mexico; and Argosy in Canada. The El Horcón property is located 100 kilometres by road northwest of Guanajuato, Santa Rosa is located 15 kilometres northeast of Guanajuato, and the Plomo property is located in Sonora, Mexico. The Argosy property is located in the Red Lake Mining District in northwestern Ontario, Canada.

2. BASIS OF PRESENTATION

These consolidated financial statements have been prepared by management of the Company in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). On February 28, 2019, the Company's Board of Directors approved these consolidated financial statements for issuance.

3. SIGNIFICANT ACCOUNTING POLICIES

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements.

(a) Basis of consolidation

These consolidated financial statements include the accounts of the Company. All material intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation.

9

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and has the ability to affect those returns through its power over the investee.

Great Panther Silver Limited is the ultimate parent entity of the group. At December 31, 2018, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

Name	Location	Ownership	Principal Activity
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Metálicos de Durango S.A. de C.V.	Mexico	100%	Mining services company
Minera de Villa Seca S.A. de C.V.	Mexico	100%	Mining services company
Coboro Minerales de México S.A. de C.V.	Mexico	100%	Exploration company
Great Panther Coricancha S.A.	Peru	100%	Exploration company
Great Panther Silver Peru S.A.C.	Peru	100%	Exploration company
Cangold Peru S.A.C.	Peru	100%	Exploration company
Great Panther Finance Canada Limited	Canada	100%	Financing company
Cangold Limited	Canada	100%	Exploration company
GP Finance International S.a.r.l.	Luxembourg	100%	Financing company

(b) Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis except for the following items in the statement of financial position:

· Derivative financial instruments are measured at fair value;

· Financial instruments at fair value through profit or loss are measured at fair value; and

· Financial assets at fair value through other comprehensive income are measured at fair value.

(c) Foreign currency translation

These consolidated financial statements are presented in US dollars which is the Canadian parent company’s presentation currency and functional currency. The functional currency of eight of the Company’s subsidiaries is also the US dollars. The functional currency of two of the Company’s Mexican subsidiaries is the Mexican peso.

(i) Transactions and balances

Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in net income.

(ii) Translation of subsidiary results into the presentation currency

The operating results and statements of financial position of the Company’s subsidiaries which have a functional currency that differs from the Company’s presentation currency are translated into the presentation currency as follows:

· Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;

10

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

· Income and expenses for each statement of comprehensive income are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and

· All resulting exchange differences are recognized as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are recognized in net income as part of the gain or loss on sale.

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of 90 days or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Transaction costs are expensed when incurred. Cash and cash equivalents are designated as financial assets at amortized cost.

(e) Inventories

Inventories consist of:

· Ore stockpiles and concentrate inventories which are stated at the lower of weighted average cost and net realizable value. Costs include production costs and amortization and depletion directly attributable to the inventory production process. Net realizable value is the expected selling price for the finished product less the costs to put the product into saleable form and delivery to the selling location.

· Materials and supplies inventory, which includes the cost of consumables used in operations are stated at the lower of weighted average cost and replacement cost which approximates net realizable value. Major spare parts and standby equipment are included in property, plant, and equipment when they are expected to be used over more than one period, if they can only be used in connection with an item of property, plant and equipment.

· Silver bullion coins and bars are recorded at lower of cost and net realizable value.

(f) Mineral properties, plant and equipment

(i) Mineral properties

Mine development costs are capitalized if management determines that there is sufficient evidence to support probability of generating positive economic returns in the future. A mineral resource is considered to have economic potential when the technical feasibility and commercial viability of extraction of the mineral resource is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management determines whether the following conditions have been met: there is a probable future benefit that will contribute to future cash inflows; the Company can obtain the benefit and control access to it; and the transaction or event giving rise to the benefit has already occurred.

In the event that the Company does not have sufficient evidence to support the probability of generating positive economic returns in the future, mine development costs are expensed to profit or loss. The Company expenses mine development costs for the San Ignacio Mine. In September 2015, the Company commenced expensing mine development costs for the Guanajuato Mine when the published Measured and Indicated Resources for the Guanajuato Mine represented less than twelve months of remaining production. Mine development costs incurred at the GMC includes expenditures associated with accessing mineral resources and gaining further information regarding the ore body, whether by means of ramp development, drilling or sampling.

11

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Producing mineral properties acquired through business acquisitions are recognized at fair value on the acquisition date. Where applicable, the estimated cost of mine reclamation and remediation for the property is included in the cost of mineral properties.

(ii) Plant and equipment

Plant and equipment is originally recorded at cost at the time of construction, purchase, or acquisition, and is subsequently measured at cost less accumulated amortization and impairment. Cost includes all costs required to bring the plant and equipment into a condition and location where it is capable of operating according to its intended use.

Costs incurred for major overhaul of existing equipment or infrastructure are capitalized as plant and equipment and are subject to amortization once they are commissioned. Costs associated with routine maintenance and repairs are charged to operations as incurred.

(iii) Amortization and depletion

Plant and equipment is amortized using the straight-line method over the shorter of the estimated remaining life of the mine and the estimated remaining useful life of the asset. All other equipment, buildings and furniture and fixtures which do not relate directly to the mining operations are amortized over the useful life of the asset. Land is not amortized.

The following amortization rates are used by the Company for plant, equipment, buildings and furniture and fixtures which do not relate specifically to mining activities:

Computers	straight line over estimated useful life of 3 years
Furniture	straight line over estimated useful life of 5 years
Office	straight line over estimated useful life of 5 years
Software	straight line over estimated useful life of 3 years
Leasehold improvements	straight line over term of the lease

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in profit or loss.

(g) Exploration and evaluation assets

(i) Exploration properties

Exploration properties represent properties for which the Company has not yet performed sufficient exploration work to determine whether significant mineralization exists. Exploration properties are carried at the cost of acquisition and included in exploration and evaluation assets. Exploration expenditures incurred on such properties are expensed as incurred as exploration expenditures in profit or loss. Examples of exploration expenditures that are expensed under this policy include topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; and sampling. The Company considers its Coricancha, Santa Rosa, El Horcón, Plomo and Argosy projects to be in this category as at December 31, 2018, and consequently, expenses all costs associated with these projects as they are incurred.

12

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(ii) Evaluation properties

Evaluation properties represent properties for which the Company has identified a mineral resource of such quantity and grade or quality that it has reasonable prospects for economic extraction. A mineral resource is considered to have reasonable prospects for economic extraction when the Company has sufficient information to determine that extraction is viable and feasible at expected long-term metal prices. Expenditures made in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource are capitalized and included in exploration and evaluation assets. Evaluation expenditures include the costs of drilling, sampling and other costs related to defining and delineating the mineral deposit.

When the technical feasibility and commercial viability of the extraction of mineral resources associated with the Company’s evaluation properties are demonstrable and management has made a decision to proceed with development, the capitalized costs associated with evaluation assets are reclassified from exploration and evaluation assets to mineral properties. They are tested for impairment at that time.

(iii) Amortization and depletion

Exploration and evaluation assets are not subject to depletion or amortization, but rather are tested for impairment when circumstances indicate that the carrying value may not be recoverable.

(h) Leased assets

Leases in which the Company assumes substantially all risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value and the present value of the minimum lease payments at inception of the lease. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases are operating leases and are recognized on a straight-line basis in the Company’s statement of comprehensive income.

(i) Impairment of non-financial assets

Exploration and evaluation assets are tested for impairment when circumstances indicate that the carrying value may not be recoverable. When facts and circumstances suggest that the carrying amount of an asset exceeds its recoverable amount, the Company performs an impairment test by comparing the recoverable amount to the carrying amount of the relevant exploration and evaluation property. When the carrying value exceeds the recoverable amount of the relevant exploration and evaluation property, an impairment charge is recorded and the property is written down to its recoverable amount. In addition, exploration and evaluation assets are tested for impairment at the date they are transferred to mineral properties, plant and equipment.

The Company’s mineral properties, plant and equipment are reviewed for any indication of impairment at each financial reporting date or at any time if an indicator of impairment is considered to exist. If any such indicators exist, an estimate of the recoverable amount is undertaken, being the higher of an asset’s fair value less costs of disposal and the asset’s value in use. If the asset’s carrying amount exceeds its recoverable amount then an impairment loss is recognized in net income or loss for the period, and the carrying value of the asset on the statement of financial position is reduced to its recoverable amount. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value of mineral properties is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, discounted by an appropriate pre-tax discount rate to arrive at a net present value.

Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Value in use is determined by applying assumptions specific to the Company’s continued use which includes future development. As such, these assumptions may differ from those used in calculating fair value.

13

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

In testing for indicators of impairment and performing impairment calculations, assets are grouped into cash-generating units, which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. The estimates of future discounted cash flows are subject to risks and uncertainties including estimated production, grades, recoveries, future metals prices, discount rates, exchange rates and operating costs.

Non-financial assets other than goodwill that have suffered an impairment are evaluated for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not been recorded.

(j) Share-based compensation

Equity-settled share-based compensation arrangements such as the Company’s stock option plan, restricted share unit plan, and deferred share unit plan are measured at fair value at the date of grant and recorded within equity. The fair value at grant date of all share-based compensation is recognized as compensation expense over the vesting period, with a corresponding credit to shareholders’ equity. The amount recognized as an expense is adjusted to reflect share options forfeited. The Company estimates the fair value of share options granted using the Black-Scholes option pricing model.

(k) Revenue recognition

The Company recognizes revenue from contracts with customers for the sale of metal concentrates at the point in time when it transfers control of the concentrates over to the customer, which occurs upon delivery, typically at a third party warehouse designated by the customer. Revenue is measured based on the market metal prices expected at time of settlement and estimates of the mineral content (by way of weights and assays), both of which are subject to adjustment until the final settlement date. At the end of each reporting period, the amounts receivable are marked to market using the most up-to-date market prices for the settlement. These variations between the sales price recorded at the initial recognition date and the actual final sales price recorded at the settlement date are caused by changes in market prices. The settlement receivable is recorded at fair value each period until final settlement occurs, with changes in fair value recorded as a component of revenue.

An adjustment is also made when the final mineral content is known, which is recognized in revenue. Revenue is also recorded net of treatment and refining charges of the counterparties under the terms of the relevant sales agreements.

(l) Reclamation and remediation provisions

The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes the cost of future reclamation and remediation as a liability when: the Company has a legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and a reasonable estimate of the obligation can be made. The liability is measured initially by discounting expected costs to the net present value using pre-tax rates and risk assumptions specific to the liability. The resulting cost is capitalized to the carrying value of the related assets, or expensed to profit or loss where there is no carrying value of the related assets. In subsequent periods, the liability is adjusted for accretion of the discount with the offsetting amount charged to the statement of comprehensive income as finance cost. Any change in the amount or timing of the underlying cash flows is adjusted to the carrying value of the liability, with the offsetting amount recorded as an adjustment to the reclamation and remediation provision cost included in mineral properties or exploration, evaluation and development expenses. Any amount charged to the carrying value of assets is depreciated over the remaining life of the relevant assets.

14

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

It is reasonably possible that the ultimate cost of remediation and reclamation could change in the future due to uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities, changes in remediation technology and changes in discount rates. The Company reviews its reclamation and remediation provision at least annually and as evidence becomes available indicating that its expected reclamation and remediation costs may have changed. Any such changes in costs could materially impact the future amounts recorded as reclamation and remediation provision.

(m) Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables, as well as derivative instruments.

(i) Classification

The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss (“FVTPL”), or fair value through other comprehensive income (loss) (“FVOCI”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

(ii) Measurement

Initial measurement

On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.

15

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL	These assets are subsequently measured at fair value.  Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method.  The amortized cost is reduced by impairment losses.  Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss.  Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value.  Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.  Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value.  Interest income is calculated using the effective interest rate method, foreign exchange gains and losses and impairment are recognized in profit or loss.  Other net gains and losses are recognized in OCI.  On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVOCI, the Company applies the expected credit loss model. On adoption of the expected credit loss model there was no material adjustment.

(n) Income taxes

Income tax is recognized in net income or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized directly in equity.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date.

Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences), and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to be in effect when the temporary differences are likely to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is included in net income in the period in which the change is substantively enacted. The amount of deferred tax assets recognized is limited to the amount that is, in management’s estimation, probable that future taxable profits will be available against which the asset can be utilized.

16

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Deferred tax assets and liabilities are offset (i) when there is a legally enforceable right to set off current tax assets against current tax liabilities, (ii) when they relate to income taxes levied by the same taxation authority, and (iii) the Company intends to settle its current tax assets and liabilities on a net basis.

(o) Earnings per share

Earnings per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted earnings per share. Under this method, dilution is calculated based upon the net number of common shares issued should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price during the period. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed in a manner similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from restricted and deferred stock units and the assumed exercise of share options and warrants, if dilutive.

(p) Segment reporting

The Company has identified operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the executive management team (the chief operating decision maker – “CODM”) in assessing performance and in determining allocation of resources. The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures such as net property, plant and equipment, as well as operating results. All operating segments’ operating results are reviewed regularly by the Company’s senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The Company has determined operating segments based on this information.

Segment results that are reported to senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are comprised mainly of corporate office expenses.

(q) Accounting standards issued and adopted

IFRS 15, Revenue from Contracts with Customers

In May 2014, the IASB issued a new IFRS 15 Revenue from Contracts with Customers (“IFRS 15”), which is effective for annual periods beginning on or after January 1, 2018, with earlier application permitted. The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have been introduced, which may affect the amount or timing of revenue recognized.

The Company adopted IFRS 15 on January 1, 2018, and applied this standard using the cumulative effect method. Under this method, the cumulative effect of applying IFRS 15 was recognized as of January 1, 2018 in opening retained earnings. The comparative information was not restated and continues to be reported under the old standard, IAS 18. The Company determined that the cumulative effect of applying IFRS 15 as of January 1, 2018 was $nil, as the point in time for the initial recognition of revenue of the Company's then-effective contracts with customers remained the same upon adoption of IFRS 15. Therefore, the Company did not change the recognition of revenue for any incomplete contracts with customers outstanding as at January 1, 2018.

17

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

The Company enters into contracts with customers for the sale of metal concentrates, typically of a one year duration.

As a result of the adoption of IFRS 15, the Company has changed its accounting policy for revenue recognition, which is set out in Note 3(k).

In the comparative period prior to the adoption of IFRS 15, the Company recognized revenue from sale of concentrates when it was probable that the economic benefits associated with the transaction would flow to the Company, the risks and rewards of ownership were transferred to the customer, and the amount of revenue could be reliably measured.

The adoption of IFRS 15 did not have a material effect on the consolidated financial statements at the date of adoption.

IFRS 9, Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments (“IFRS 9”) which replaces IAS 39 Financial Instruments: Recognition and Measurement, and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. New disclosure requirements are also required. IFRS 9 is effective for annual periods beginning on or after January 1, 2018.

The Company adopted this standard effective January 1, 2018. IFRS 9 allows for an exemption from restating prior periods in respect of the standard’s classification and measurement requirements. The Company has chosen to apply this exemption upon initial adoption, although it was determined that the adoption of IFRS 9 had no impact on the comparative period’s consolidated financial statements.

Upon the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments as detailed in Note 3(m).

The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. The adoption of IFRS 9 has no quantitative impact on the Company’s financial instruments as at January 1, 2018. However, it has an impact on the classification of the Company’s financial instruments compared to the old standard IAS 39 as follows:

	Original classification	New classification
	IAS 39	IFRS 9
Financial Assets:
Cash and cash equivalents	Loans and receivables	Amortized cost
Short-term deposits	Loans and receivables	Amortized cost
Marketable securities	Available-for-sale	FVOCI
Trade accounts receivable	Loans and receivables	Amortized cost
Other receivables	Loans and receivables	Amortized cost
Loan receivable	Loans and receivables	Amortized cost
Derivative assets	FVTPL	FVTPL
Restricted cash	Loans and receivables	Amortized cost
Financial Liabilities:
Trade and other payables	Other liabilities	Amortized cost
Derivative liabilities	FVTPL	FVTPL

18

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(r) Accounting standards issued but not yet adopted

IFRS 16, Leases

In January 2016, the IASB issued IFRS 16 Leases (“IFRS 16”), which replaces IAS 17 Leases, and is effective for annual periods beginning on or after January 1, 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees: leases of ’low-value’ assets; and short-term leases. For those assets determined to meet the definition of a lease, at the commencement date, a lessee will recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. IFRS 16 also requires lessees to make more extensive disclosures than under IAS 17.

In transitioning to IFRS 16, a lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain reliefs. The Company will apply IFRS 16 on January 1, 2019 using the modified retrospective approach, which means the cumulative impact of adoption will be recognized as at January 1, 2019 and the comparatives will not be restated. The Company will elect to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low-value.

In 2018, the Company continued to progress its detailed impact assessment and implementation project of IFRS 16. Much of 2018 was spent focusing on reviewing contracts, evaluating the accounting impacts and identifying where key policy decisions were required. Work completed by the Company to date indicates IFRS 16 is expected to have a material effect on the consolidated financial statements by increasing the Company’s recognized assets and liabilities.

Based on the Company’s current assessment of the expected impact of IFRS 16, the Company expects that the adoption will result in the recognition of additional right of use assets and lease liabilities of approximately $1,000 to $1,300. These are related to the Company’s land easement and office leases.

The Company does not expect a material impact to the Consolidated Statements of Comprehensive Income (Loss) or the Consolidated Statements of Cash Flows. However, compared with the existing accounting for operating leases, the classification of expenses and cash flows will be impacted.

4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Estimates are based on historical experience and other factors considered to be reasonable, and are reviewed on an ongoing basis. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The Company has identified the following areas where significant estimates, assumptions and judgments are made and where actual results may differ from the estimates under different assumptions and conditions and may materially affect financial results of the Company reported in future periods.

19

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(a) Resource estimation

The accuracy of resource estimates is a function of the quantity and quality of available data and assumptions made and judgments used in the geological and engineering interpretation, and may be subject to revision based on various factors. Changes in resource estimates may impact the carrying value of mineral property, plant and equipment, the calculation of amortization and depletion, the capitalization of mine development costs, and the timing of cash flows related to reclamation and remediation provision.

(b) Useful lives of mineral properties, plant and equipment

The Company's mineral properties are depleted using the straight-line method over the estimated remaining life of the mine. The Company's plant and equipment are amortized over the shorter of the estimated remaining life of the mine and the estimated remaining useful lives of the asset.

The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, mineral resource estimates, and management’s intent to operate the property. The estimated remaining life of the producing mineral property is used to calculate amortization and depletion expense, assess impairment charges and the carrying values of assets, and for forecasting the timing of the payment of reclamation and remediation costs.

There are numerous uncertainties inherent in the estimation of the remaining lives of the producing mineral properties, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, or production costs may change the economic status of the resources, estimates of production from areas not included in the National Instrument 43-101 (“NI 43-101”) reports, and management’s intent to operate the property, and may ultimately have a material impact on the estimated remaining lives of the properties.

(c) Reclamation and remediation provision

The amounts recorded for reclamation and remediation provisions are based on estimates prepared by third party environmental specialists, if available, or by persons within the Company who have the relevant skills and experience. These estimates are based on remediation activities required by environmental laws, the expected timing of cash flows, and the pre-tax risk free interest rates on which the estimated cash flows have been discounted. These estimates also include an assumption of the rate at which costs may inflate in future periods. Actual results could differ from these estimates. The estimates require extensive judgment about the nature, cost and timing of the work to be completed, and may change with future changes to costs, environmental laws and regulations and remediation practices.

(d) Review of asset carrying values and assessment of impairment

The Company reviews each asset or cash generating unit at each reporting date to determine whether there are any indicators of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating unit is measured at the higher of fair value less costs to sell and value in use.

The determination of fair value less costs of disposal and value in use requires management to make estimates and assumptions about expected production and sales volumes, metal prices, ore tonnage and grades, recoveries, operating costs, reclamation and remediation costs, future capital expenditures and appropriate discount rates for future cash flows. The estimates and assumptions are subject to risk and uncertainty, and as such there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in profit or loss.

20

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(e) Revenue from metal concentrate sales

The Company recognizes revenue from the sale of metal concentrates when the customer obtains control of the concentrates, which occurs upon delivery at the customer's designated warehouse. The determination of the point in time in which the Company transfers control of the metal concentrates to the customers for revenue recognition requires significant judgment. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically 5 business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

(f) Income taxes and recoverability of deferred tax assets

In assessing the probability of realizing income tax assets, the Company makes estimates related to expected future taxable income, potential tax planning opportunities, estimated timing of reversals of temporary differences, and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. Where applicable tax laws and regulations are unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur which may materially affect the amounts of income tax assets recognized. In addition, future changes in tax laws could limit the Company’s ability to realize the benefits from deferred tax assets.

(g) Determination of functional currencies

The determination of an entity’s functional currency is a matter of judgment based on an assessment of the specific facts and circumstances relevant to determining the primary economic environment of each individual entity within the group. The Company reconsiders the functional currencies used when there is a change in events or conditions considered in determining the primary economic environment of each entity.

5. TRADE AND OTHER RECEIVABLES

	December 31, 2018		December 31, 2017
Trade receivables	$	2,939	$	7,679
Value added tax receivable		5,473		4,998
Other		475		2,103
	$	8,887	$	14,780

21

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

6. INVENTORIES

(a) Inventories – current

	December 31, 2018		December 31, 2017
Concentrate	$	1,094	$	2,179
Ore stockpile		913		715
Materials and supplies		2,818		2,396
Silver bullion		3		4
	$	4,828	$	5,294

Inventories are recorded at net realizable value.

During the year ended December 31, 2018, the amount of inventory recognized as cost of sales was $45,921 (2017 – $41,208), which includes production costs and amortization and depletion directly attributable to the inventory production process.

(b) Inventories – non-current

Non-current inventories arise from the acquisition of Coricancha (note 9(a)) and consist of materials and supplies of $1,420 as of December 31, 2018 (December 31, 2017 – $1,580).

7. Loan receivable

On December 5, 2018, the Company entered into a loan agreement (the “Loan Agreement”) pursuant to which the Company agreed to advance Beadell and its subsidiary, Beadell Brasil Ltda. (“Beadell Brasil”), as joint and several borrowers, a non-revolving term loan in the principal amount of $5,000 (the “Loan”), for their general working capital requirements. The key terms of the Loan Agreement were as follows:

· Maturity date: January 15, 2019, which could be extended by mutual agreement for an additional 30-day period as required;

· Interest rate: 14% per year until and including January 15, 2019, and 18% per year from the day after January 15, 2019 if the Loan was extended;

· Interest payment: accrues daily, payable monthly in arrears on the 1st business day of each calendar month or, if earlier, on the date of repayment in full of the Loan.

The Loan plus accrued interest was to be paid on the Maturity date. Additionally, Beadell was required to prepay any outstanding principal balance of the Loan with the full amount of any proceeds of PIS (Programas de Integração Social e de Formação do Patrimônio do Servidor Público) and COFINS (Contribuição para o Financiamento da Seguridade Social) tax refunds, immediately upon receipt of such proceeds.

Subsequent to the reporting period, the Company received partial repayment of $3,000 of the principal amount advanced and payment of accrued interest of $69. The Company also agreed to extend the maturity date of the remaining outstanding principal of $2,000 to March 18, 2019, with the same terms and conditions as the original Loan Agreement.

22

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

8. MINERAL PROPERTIES, PLANT AND EQUIPMENT

	Mineral properties			Plant and equipment			Land and buildings			Furniture, fixtures and equipment			Software		Total
Cost
Balance, January 1, 2018	$	36,083		$	34,070		$	2,460		$	2,963		$	1,628	$	77,204
Additions		–			1,514			148			407			–		2,069
Change in remediation provision		(17	)		(127	)		–			–			–		(144	)
Disposals		–			(273	)		(35	)		(11	)		–		(319	)
Balance, December 31, 2018	$	36,066		$	35,184		$	2,573		$	3,359		$	1,628	$	78,810
Accumulated depreciation
Balance, January 1, 2018	$	31,435		$	25,413		$	1,539		$	2,383		$	1,468	$	62,238
Amortization and depletion		616			2,448			114			229			52		3,459
Disposals		–			(268	)		–			(10	)		–		(278	)
Balance, December 31, 2018	$	32,051		$	27,593		$	1,653		$	2,602		$	1,520	$	65,419
Carrying value, December 31, 2018	$	4,015		$	7,591		$	920		$	757		$	108	$	13,391
Cost
Balance, January 1, 2017	$	35,909		$	30,157		$	2,333		$	2,670		$	1,478	$	72,547
Additions		–			4,003			127			291			150		4,571
Change in remediation provision		174			(82	)		–			–			–		92
Disposals		–			(8	)		–			(3	)		–		(11	)
Foreign exchange		–			–			–			5			–		5
Balance, December 31, 2017	$	36,083		$	34,070		$	2,460		$	2,963		$	1,628	$	77,204
Accumulated depreciation
Balance, January 1, 2017	$	30,893		$	22,445		$	1,424		$	2,211		$	1,456	$	58,429
Amortization and depletion		542			2,975			115			173			12		3,817
Disposals		–			(7	)		–			(4	)		–		(11	)
Foreign exchange		–			–			–			3			–		3
Balance, December 31, 2017	$	31,435		$	25,413		$	1,539		$	2,383		$	1,468	$	62,238
Carrying value, December 31, 2017	$	4,648		$	8,657		$	921		$	580		$	160	$	14,966

23

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(a) Changes in estimate

(i) Updated mineral resource estimate for 2017

On February 21, 2017, the Company provided an update on the Mineral Resource for the GMC, following which management reviewed the remaining useful life of the GMC, effective August 31, 2016. The estimate of the useful life of the GMC remained unchanged from the previous estimate.

(ii) Updated mineral resource estimate for 2018

On January 25, 2018, the Company provided an update on the Mineral Resource for the GMC, effective August 31, 2017, following which management reviewed the remaining useful life of the GMC. The estimate of the useful life of the GMC was determined to be 4.3 years (an increase from the previous estimate of 1.3 years) as at October 1, 2017. As a result, the depreciation recorded during the year ended December 31, 2017 was approximately $284 less than would have been recorded prior to the change in estimate.

(iii) Updated mineral resource estimate for 2019

On January 29, 2019, the Company provided an update on the Mineral Resource for Topia, effective July 31, 2018, following which management reviewed the remaining useful life of Topia. The estimate of the useful life of Topia was determined to be 5.3 years (a decrease from the previous estimate of 7.8 years) as at October 1, 2018. As a result, the depreciation recorded during the year ended December 31, 2018 was approximately $230 more than would have been recorded prior to the change in estimate.

9. EXPLORATION AND EVALUATION ASSETS

	Santa Rosa Property		El Horcón Property		Coricancha			Total
Balance, January 1, 2017	$	988	$	1,124	$	–		$	2,112
Acquisition costs (note 9(a))		–		–		13,623			13,623
Costs incurred subsequent to acquisition		–		–		31			31
Change in reclamation and remediation provision		–		–		(133	)		(133	)
Balance, December 31, 2017	$	988	$	1,124	$	13,521		$	15,633
Change in reclamation and remediation provision		–		–		(568	)		(568	)
Balance, December 31, 2018	$	988	$	1,124	$	12,953		$	15,065

24

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(a) Acquisition of Coricancha Mine Complex

On June 30, 2017, the Company acquired 100% of the outstanding common shares (the "Acquisition") of the Nyrstar subsidiary which owned Coricancha. Under the terms of the share purchase agreement, the purchase price comprised (i) $100 payable upon closing, and (ii) earn-out consideration of up to $10,000. Under the earn-out, Nyrstar may receive 15% of the free cash flow generated by Coricancha during the five-year period after which the mine is cumulative free cash flow positive from June 30, 2017. The Company attributed a fair value of nil to the contingent consideration, as it is not considered to be reliably determinable.

Pursuant to the Acquisition, Nyrstar agreed to:

(i) Maintain a remediation bond (in the amount of $9,737) for Coricancha until at least June 30, 2020. Should the Company make a decision to permanently close Coricancha prior to June 30, 2020, the bond will be used to pay for remediation costs and obligations. If the Company has not made a decision to permanently close Coricancha by June 30, 2020, the Company will assume the obligation to maintain the required bond, and shall release Nyrstar from these obligations;

(ii) Pay for the cost of movement and reclamation of certain legacy tailings facilities (the “Legacy Tailings”) should the regulatory authorities require these to be moved, up to a maximum of $20,000; and,

(iii) Satisfy on a timely basis all fines or sanctions that arise before or after closing resulting from activities or ownership of Coricancha for the period prior to June 30, 2017, up to a maximum of $4,000.

The Company recognized a reclamation and remediation provision of $23,767, including $9,502 related to the Legacy Tailings. At the Acquisition date, the Company estimated that approximately $4,757 of the cost associated with the Legacy Tailings would be incurred within twelve months and presented this amount as a current liability. At the Acquisition Date, the present value of the reclamation and remediation obligations was based on the following estimates (estimated total cash flows ‒ $34,659; expected settlement ‒ years 2017 to 2047; weighted average risk-free rate ‒ 5.36%)

At the Acquisition date, the Company recorded reimbursement rights totaling $11,168, in respect of:

· the reclamation of the Legacy Tailings in the amount of $9,502, as Nyrstar has indemnified the Company for the cost associated with this reclamation work of up to $20,000, see (ii) above,

· provisions recognized by Coricancha in regard to fines and sanction in the amount of $1,666, as Nyrstar has indemnified the Company for the cost associated with fees and sanctions of up to $4,000, see (iii) above.

The Acquisition was accounted for as an asset purchase, as it did not meet the definition of a business under IFRS 3 Business Combinations.

25

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

As of the date of the Acquisition, the Company incurred consideration and recognized its interest in exploration and evaluation assets and net working capital of Coricancha as follows:

Consideration:
Cash consideration payable	$	100
Professional and other fees incurred		76
Consideration	$	176
Net assets purchased:
Cash	$	105
Trade and other receivables		24
Other current assets		10
Inventories (note 6(b))		1,622
Reimbursement rights		11,168
Exploration and evaluation assets		13,623
Trade and other accounts payables		(2,609	)
Reclamation and remediation provision – current		(4,757	)
Reclamation and remediation provision – non-current		(19,010	)
Net assets purchased:	$	176

Under the terms of the Acquisition, the Company was required to fund an environmental bond related to the Coricancha remediation plan in the amount of $1,234. This guarantee was funded by the Company during the fourth quarter of 2017 and is presented as restricted cash on the Statement of Financial Position.

Restricted cash	December 31, 2018		December 31, 2017
Funding of a reclamation bond in respect of Coricancha	$	1,237	$	1,234

10. REIMBURSEMENT RIGHTS

	December 31, 2018			December 31, 2017
Legacy tailings reclamation and remediation	$	8,943		$	8,904
Legal claims		1,528			1,507
Fines and sanctions		384			623
		10,855			11,034
Less: current portion		(6,385	)		(4,446	)
Reimbursement rights – non-current portion	$	4,470		$	6,588

As described in note 9(a) above, pursuant to the acquisition of Coricancha, Nyrstar agreed to:

· pay for the cost of movement and reclamation of certain legacy tailings facilities (the “Legacy Tailings”) should the regulatory authorities require these to be moved, up to a maximum of $20,000; and,

· pay for all fines or sanctions that arise before or after closing resulting from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4,000.

26

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

11. TRADE PAYABLES AND ACCRUED LIABILITIES

	December 31, 2018		December 31, 2017
Trade payables	$	6,259	$	6,243
Accrued liabilities		2,774		2,919
Taxes payable		240		1,025
Other payables		1,374		1,126
	$	10,647	$	11,313

Accrued liabilities includes Coricancha-related claims payable of $1,912 (December 31, 2017 ‒ $2,130), which are recoverable from Nyrstar and are included in the reimbursement right asset (note 10). While the precise timing of settlement is uncertain, such amounts are presented as current liabilities because settlement could be within twelve months of the reporting date.

12. DERIVATIVE INSTRUMENTS

A significant portion of the Company’s capital, exploration, operating and administrative expenditures are incurred in Mexican pesos (“MXN”), while revenues from the sale of concentrates are denominated in US dollars (“USD”). The fluctuation of the USD in relation to the MXN, consequently, impacts the reported financial performance of the Company. To manage the Company’s exposure to changes in the USD/MXN exchange rate, the Company entered into forward contracts to purchase MXN in exchange for USD at various rates and maturity dates.

As at December 31, 2018, forward contracts for the purchase of MXN 345 million (December 31, 2017 – MXN 110 million), in exchange for USD at various pre-determined rates ranging from MXN 20.35/USD to MXN 21.17/USD, at various maturity dates until June 4, 2019, were outstanding. The fair value of these outstanding foreign currency forward contracts resulted in an asset of $738 at December 31, 2018 (December 31, 2017 – liability of $85).

13. RECLAMATION AND REMEDIATION PROVISION

The Company’s reclamation and remediation provision relates to site restoration, clean-up, ongoing treatment, and monitoring at the GMC and Topia mines in Mexico, and the Coricancha project in Peru.

	December 31, 2018						December 31, 2017
	Total		Current		Non-current		Total		Current		Non-current
GMC	$	1,986	$	–	$	1,986	$	2,258	$	–	$	2,258
Topia		1,514		–		1,514		1,486		–		1,486
Coricancha		23,920		4,473		19,447		23,667		4,446		19,221
	$	27,420	$	4,473	$	22,947	$	27,411	$	4,446	$	22,965

27

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

	2018			2017
Balance, January 1	$	27,411		$	3,466
Coricancha acquisition (note 9(a))		–			23,767
Change in estimates		(888	)		(16	)
Accretion		897			791
Reclamation work performed		–			(597	)
Reclamation and remediation provision, December 31	$	27,420		$	27,411

In 2018, a decrease to the total change in estimate of $214 (2017 – increase of $24) associated with the GMC was expensed to exploration, evaluation and development expenses.

The reclamation and remediation provision for the GMC and Topia operations is based on the following assumptions:

	2018			2017
Total estimated cash flows	$	3,684		$	3,938
Expected settlement of obligations (years)		2021 – 2044			2023 – 2047
Weighted average risk-free rate (discount rate)
GMC		2.7	%		2.3	%
Topia		2.8	%		2.5	%

A 1% change in the discount rate while holding the other assumptions constant would decrease or increase the provision by $370.

The reclamation and remediation provision for Coricancha is based on the following assumptions:

	2018			2017
Total estimated cash flows	$	33,941		$	34,061
Expected settlement of obligations (years)		2019 – 2047			2018 – 2047
Weighted average risk-free rate (discount rate)		5.4	%		4.8	%

A 1% change in the discount rate would decrease or increase the provision by $1,159 while holding the other assumptions constant.

14. SHARE CAPITAL

(a) Authorized share capital

The Company has an unlimited number of common shares without par value authorized for issue. The Company has an unlimited number of Class A and Class B preferred shares without par value authorized for issue. Each class can be issuable in series. No preferred shares have ever been issued.

(b) Share options

In June 2017, upon approval by shareholders, the Company adopted an Omnibus Incentive Plan (the “Omnibus Plan”) to supplement and eventually replace the then-existing stock option plan (the "2016 Plan"). Pursuant to the Omnibus Plan, the Company may grant stock options (“Options”), restricted share units (“RSUs”), performance based restricted share units (“PSUs”), and deferred share units (“DSUs”) to eligible employees, officers, directors, or consultants. The maximum number of common shares that the Company may issue is limited to 10% of the outstanding common shares, less the number of stock options already outstanding pursuant to the 2016 Plan and the Omnibus Plan, less twice the number of common shares counted as RSU, PSU, and DSU awards. There are additional limits with respect to insiders, individual grants, annual grants, and the number of which may be awarded to non-executive directors.

28

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Options granted under the 2016 Plan will remain outstanding and be governed by the terms of the 2016 Plan. Options granted after the adoption of the Omnibus Plan will be governed by the Omnibus Plan.

Pursuant to the Omnibus Plan, options are non-transferable. The exercise price of options shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than 10 years after the date of grant and will cease to be exercisable three months following the termination of the participant’s employment or engagement.

Pursuant to the 2016 Plan, options are non-transferable, subject to permitted transferees, and the aggregate may not exceed 10% of the outstanding shares at the time of an option grant and the aggregate to any one person may not exceed 5% of the outstanding shares. The exercise price of options is determined by the Board of Directors but shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than 5 years after the date of grant and cease to be exercisable 90 days following the termination of the participant’s employment or engagement.

	2018					2017
	Options (000’s)			Weighted average exercise price		Options (000’s)			Weighted average exercise price
Outstanding, beginning of year		8,237		C$	1.22		9,049		C$	1.18
Granted		1,810			1.59		1,101			1.63
Forfeited/Expired		(1,134	)		1.71		(468	)		1.71
Exercised		(591	)		0.76		(1,445	)		1.08
Outstanding, end of year		8,322		C$	1.27		8,237		C$	1.22
Exercisable, end of year		6,461		C$	1.15		5,448		C$	1.08

29

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Exercise price	Options outstanding (000’s)		Weighted average remaining contractual life (years)		Options exercisable (000’s)
C$0.65		1,897		1.43		1,897
C$0.71		1,376		1.95		1,376
C$0.86		250		0.84		250
C$1.31		1,153		0.49		1,153
C$1.57		336		4.09		121
C$1.60		1,262		4.45		200
C$1.63		684		3.44		363
C$2.00		8		0.05		8
C$2.16		435		2.99		310
C$2.19		917		2.44		783
		8,318		2.29		6,461

During the year ended December 31, 2018, the Company recorded share-based compensation expense relating to share options of $611 (2017 – $1,124).

The weighted average fair value of options granted during the year ended December 31, 2018 was C$0.66 (2017 – C$0.69). The fair value of options granted was determined using the following weighted average assumptions at the time of the grant using the Black Scholes option pricing model:

	2018			2017
Risk-free interest rate		1.95	%		0.79	%
Expected life (years)		2.89			2.63
Annualized volatility		62	%		68	%
Forfeiture rate		14	%		13	%

The annualized volatility assumption is based on the historical and implied volatility of the Company’s common share price. The risk-free interest rate assumption is based on yield curves on government bonds with a remaining term equal to the expected life of the options.

(c) Restricted share units ("RSUs") and deferred share units ("DSUs")

DSUs are awards to participants for office, directorship, or employment, which settle upon termination of service of the participant. Vesting conditions for DSUs are set by the Board. Upon settlement, DSUs entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. The choice of settlement method is at the Company's sole discretion. Timing of settlement after vesting occurs at the discretion of the participant, and can be any time between the date of termination of service of the participant and December 15th of the following calendar year. The DSUs granted to date have vested immediately.

RSUs are awards for service which upon vesting and settlement entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. Vesting conditions for RSUs are set by the Board but cannot exceed three years. The choice of settlement method is at the Company's sole discretion. The RSUs granted to date vest in several tranches over three years. An estimated forfeiture rate of 15% was used in the determination of fair value for the purposes of computing share based compensation expense in the consolidated financial statements.

PSUs are a subset of RSUs, but PSUs have one or more performance conditions. PSUs may only be settled through the issuance of common shares. No PSUs have been granted to date.

30

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

The fair values of the DSUs and RSUs granted to employees and directors have been estimated by reference to the fair value on the grant date of the equity instruments granted. The Company has no history of paying dividends, and consequently, no amounts in respect of dividends were included in the estimates of fair value of the equity instruments granted.

The following table summarizes information about the DSUs outstanding at December 31, 2018 and 2017:

	2018					2017
	Number of units			Weighted average grant date fair value (C$/unit)		Number of units		Weighted average grant date fair value (C$/unit)
Balance at January 1		89,200		C$	1.59		–	C$	–
Granted		183,000			1.59		89,200		1.59
Settled		(20,800	)		1.62		–		–
Outstanding at December 31		251,400		C$	1.59		89,200	C$	1.59

The following table summarizes information about the RSUs outstanding at December 31, 2018 and 2017:

	2018					2017
	Number of units			Weighted average grant date fair value (C$/unit)		Number of units			Weighted average grant date fair value (C$/unit)
Balance at January 1		476,600		C$	1.61		–		C$	–
Granted		585,200			1.59		483,000			1.61
Settled		(170,799	)		1.61		–			–
Cancelled		(157,334	)		1.61		(6,400	)		1.65
Outstanding at December 31		733,667		C$	1.59		476,600		C$	1.61

During the year ended December 31, 2018, the Company recorded share-based compensation expense relating to RSUs and DSUs of $710 (2017 – $289).

(d) Share purchase warrants

As part of the Company’s July 2016 financing, the Company issued 9,343,750 share purchase warrants. Each warrant entitled the holder thereof to purchase one common share at a price of $2.25 per share until January 12, 2018. The fair value per share purchase warrant was determined to be $0.43, using the following weighted average assumptions at the time of the issuance using the Black Scholes option pricing model:

31

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

Share price at measurement date	C$	1.47
Risk-free interest rate		0.69	%
Expected life (years)		1.5
Annualized volatility		88	%

All share purchase warrants expired unexercised on January 12, 2018 (December 31, 2017 – 9,343,750 outstanding).

15. EARNINGS PER SHARE

	2018			2017
Income (loss) attributable to equity owners	$	(10,063	)	$	1,290
Weighted average number of shares (000's)		168,888			167,966
Earnings (loss) per share ‒ basic	$	(0.06	)	$	0.01

	2018			2017
Adjusted income (loss) attributable to equity owners	$	(10,063	)	$	1,290
Weighted average number of shares (000's)		168,888			167,966
Incremental shares from options		–			3,066
Incremental shares from warrants		–			–
Incremental shares from RSUs and DSUs		–			275
Weighted average diluted number of shares (000's)		168,888			171,307
Earnings (loss) per share ‒ diluted	$	(0.06	)	$	0.01

Anti-dilutive share purchase options have not been included in the diluted earnings per share calculation.

16. Revenue

The initial application of IFRS 15 on the Company’s revenue from contracts with customers is described in Note 3(q). The effect was determined to be $nil as of January 1, 2018.

The Company recognizes revenue from the sale of metal concentrates when the customer obtains control of the concentrates, which occurs upon delivery at the customer's designated warehouse. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically 5 business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

32

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

	2018			2017
Silver	$	28,344		$	33,181
Gold		24,962			27,485
Lead		3,982			2,690
Zinc		4,605			3,798
Smelting and refining charges		(2,186	)		(4,180	)
Revenue from contracts with customers	$	59,707		$	62,974
Changes in fair value from provisional pricing		(273	)		772
Total revenue	$	59,434		$	63,746

The amount of revenue recognized in the year ended December 31, 2018 from performance obligations satisfied (or partially satisfied) in the previous year ended December 31, 2017, due to the current period settlement of metal concentrate revenue recognized in prior periods, was $362. At December 31, 2018, the Company had $5,860 in revenue subject to provisional pricing.

For the years ended December 31, 2018 and 2017, the Company had revenue contracts with three customers (2017 - three customers) that accounted for the majority of the total revenues as follows:

Customer	Geographical Market	2018		2017
Customer A	Mexico (Guanajuato)	$	18,601	$	–
Customer B	Mexico (Guanajuato)		18,779		–
Customer C	Mexico (Topia)		19,780		–
Customer D	Mexico (Guanajuato)		2,065		24,805
Customer E	Mexico (Guanajuato)		190		24,433
Customer F	Mexico (Topia)		19		14,508
		$	59,434	$	63,746

The trade accounts receivable balance of $2,939 at December 31, 2018 (December 31, 2017 – $7,679) relates to Customers A, B, and C.

33

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

17. INCOME TAXES

(a) Income tax expense

	2018			2017
Current expense:
Income tax	$	164		$	135
Special mining duty		98			1,041
Withholding tax		427			427
		689			1,603
Deferred tax expense (recovery):
Income tax		(56	)		28
Special mining duty		(357	)		(270	)
Withholding tax		376			105
		(37	)		(137	)
Income tax expense	$	652		$	1,466

The reconciliation of income taxes calculated at the Canadian statutory tax rate to the income tax expense shown in these consolidated financial statements is as follows:

	2018			2017
Net income (loss) before tax	$	(9,411	)	$	2,756
Canadian statutory income tax rate		27	%		26	%
Anticipated income tax at statutory rate	$	(2,541	)	$	717
Permanent differences		190			340
Differences between Canadian and foreign tax rates		(269	)		143
Change in estimate		194			802
Effect of changes in statutory tax rates		–			(228	)
Inflation adjustment		(141	)		(537	)
Impact of foreign exchange on local currencies		975			316
Change in deferred tax assets not recognized		1,746			(955	)
Mining taxes and duties		(156	)		778
Withholding taxes		803			532
Utilization of foreign tax credits		(149	)		(138	)
Other items		–			(304	)
Income tax expense	$	652		$	1,466
Effective tax rate		-7	%		53	%

34

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(b) Deferred income tax assets and liabilities

The significant components of deferred tax assets and liabilities are:

	December 31, 2018			December 31, 2017
Deferred income tax assets	$	126		$	70
Deferred income tax liabilities		(2,053	)		(1,677	)
Deferred special mining duty asset (liabilities)		96			(253	)
	$	(1,831	)	$	(1,860	)

The following temporary differences and tax losses give rise to deferred income tax assets and liabilities:

	December 31, 2018			December 31, 2017
Tax losses carried forward	$	1,399		$	1,855
Provision for reclamation and remediation		262			281
Withholding tax liability		(2,053	)		(1,677	)
Property, plant and equipment		(1,754	)		(2,576	)
Prepaid expenses		(28	)		(18	)
Other deductible temporary differences		343			275
Net deferred income tax liabilities	$	(1,831	)	$	(1,860	)

Losses expire as follows:

		2018			2017
Type of losses	Country	Expiry dates	Amount		Expiry dates	Amount
Non-capital losses	Canada	2026 to 2038	$	2,822	2026 to 2037	$	4,834
	Mexico	2019 to 2027	$	16,557	2018 to 2026	$	10,225
	Peru	indefinite	$	66,462	indefinite	$	65,031
Capital losses	Canada	indefinite	$	1,196	indefinite	$	1,196

(i) Unrecognized deferred tax assets:

The Company recognizes tax benefits on losses or other deductible amounts where it is probable the deferred tax assets will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax assets are recognized consist of the following amounts:

	December 31, 2018		December 31, 2017
Tax losses carried forward	$	25,305	$	15,643
Property, plant and equipment		8,919		4,908
Other deductible temporary differences		42,653		40,038
Unrecognized temporary differences	$	76,877	$	60,589

35

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

18. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (interest rate, yield curves), or inputs that are derived principally from or corroborated observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

The following sets up the methods and assumptions used to estimate the fair value of Level 2 and Level 3 financial instruments.

Financial asset or liability	Methods and assumptions used to estimate fair value
Trade receivables	Trade receivables arising from the sales of metal concentrates are subject to provisional pricing, and the final selling price is adjusted at the end of quotational period.  We mark these to market at each reporting date based on a quoted forward price.  The Company’s trade receivables are valued using quoted market prices on the London Metal Exchange (“LME”).
Loan receivable	The Company’s loan receivable is comprised of a short-term non-revolving term (Note 7).  Due to its short-term nature, the fair value of the loan approximates its carrying value at initial recognition.
Derivative instruments	The Company's derivative assets and derivative liabilities are comprised of forward exchange contracts.  The fair value of the Company's forward exchange contracts are determined using forward exchange rates at each reporting date.

During the years ended December 31, 2018, and 2017, there were no transfers of amounts between Level 1, Level 2, and Level 3 of the fair value hierarchy. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not measured at fair value is not presented if the carrying amount is a reasonable approximation of fair value.

The Company’s financial instruments include cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables and derivative instruments. The carrying values of cash and cash equivalents, short-term deposits, trade and other receivables, loan receivable and trade and other payables approximate their fair values due to the short-term nature of the items.

In evaluating fair value information, considerable judgment is required to interpret the market data used to develop the estimates. The use of different market assumptions and valuation techniques may have a material effect on the estimated fair value amounts.

36

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

The following table summarizes the Company’s financial instruments as at December 31, 2018:

	Fair value through OCI		Fair value through P&L		Amortized cost		Total		Fair value hierarchy
Financial Assets
Cash and cash equivalents	$	–	$	–	$	24,524	$	24,524	n/a
Short-term deposits		–		–		26,057		26,057	n/a
Marketable securities		1		–		–		1	Level 1
Trade receivables		–		–		2,939		2,939	Level 2
Loan receivable		–		–		5,048		5,048	Level 2
Other receivables		–		–		475		475	n/a
Derivative assets		–		738		–		738	Level 2
Restricted cash		–		–		1,237		1,237	n/a
Financial Liabilities
Trade and other payables	$	–	$	–	$	7,633	$	7,633	n/a

19. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to:

· ensure there are adequate capital resources to support the Company’s ability to continue as a going concern;

· maintain adequate levels of cash to support the acquisition, exploration and development of mineral properties, exploration and evaluation assets, and the operation of producing mines;

· maintain investor, creditor and market confidence to sustain future development of the business; and

· provide returns to shareholders and benefits for other stakeholders.

In assessing the capital structure of the Company, management includes in its assessment the components of shareholders’ equity and debt, net of cash and cash equivalents and short-term deposits. The Topia Mine and the GMC mines are in production, but exploration and development activities are also performed at these and other exploration properties in order to identify further resources. Additionally, the Company is undertaking exploration and development activities at Coricancha, which has been on care and maintenance since August 2013, in order to make a decision about whether or not to bring the property into commercial production. The Company plans to use existing cash, as well as funds from future sales of concentrates to fund operations, development and exploration activities.

The Company manages its capital in a manner that provides sufficient funding for operational activities. Annual capital and operating expenditure budgets, and rolling forecasts, are used to determine the necessary capital requirements. These budgets are approved by management and the Board of Directors and updated for changes in the underlying assumptions, economic conditions and risk characteristics of the underlying assets, as necessary. The Company will continue to focus on internally generated cash flow to minimize its reliance on equity and debt financing. However, the Company may also raise cash through the offering of its share capital, in order to meet longer term objectives.

The Company’s capital structure is dependent on expected business growth and changes in the business environment. As at December 31, 2018, the Company was not subject to externally imposed capital requirements.

37

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

20. FINANCIAL RISK MANAGEMENT

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

The Company is exposed to certain financial risks, including credit risk, liquidity risk, and market risks such as currency risk, interest rate risk, and commodity price risk.

(a) Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's exposures to credit risk arise from our cash and short-term investments, trade accounts receivable, and loan receivable. Lesser exposures arise from our holdings of marketable securities, and from other receivables.

The risk is assessed by performing an aging analysis of our trade receivables, and through the review of credit ratings of the counterparties with which we do business.

We manage such credit risks by diversifying our bank deposits, and placing our funds only in large Canadian and Mexican financial institutions. Our investments are subject to internal investment guidelines and they mature at various dates but rarely in excess of one year.

All of our concentrate sales are to large international metals trading companies and/or smelters which have done business in Mexico for many years. The Company typically receives provisional payments, within days after delivery, of up to 95% of the value of each shipment. The Company historically has not had difficulty collecting receivables from its customers, nor have customers defaulted on any payments.

The aging of trade receivables from concentrate sales is as follows:

	December 31, 2018			December 31, 2017
0 to 30 days	$	2,572		$	4,154
31 to 60 days		455			801
61 to 90 days		(99	)		2,170
over 90 days		11			554
	$	2,939		$	7,679

The loan receivable is comprised of a loan advance to Beadell, the entity that the Company has agreed to acquire (note 7 and 21(b)), to support its general working capital requirements. The Company managed its credit risk exposure by requiring Beadell to prepay any outstanding principal balance of the loan with the full amount of any proceeds of PIS (Programas de Integração Social e de Formação do Patrimônio do Servidor Público) and COFINS (Contribuição para o Financiamento da Seguridade Social) tax refunds, immediately upon receipt of such proceeds.

There has been no notable change in the Company's approach to credit risk management since the prior year.

(b) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's exposure to liquidity risk arises from its trade and other payables. We regularly prepare rolling cash flows to identify and assess such liquidity risks.

We manage our liquidity risk by preparing annual budgets for approval by the Board and preparing cash flow and liquidity forecasts on a quarterly basis.

There has been no notable change in the Company's approach to liquidity risk management since the prior year.

38

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(c) Currency risk

Currency risk is the risk that foreign exchange rates will fluctuate significantly from expectations. The Company's exposure to currency risk arises from its operations in Canada, Mexico and Peru, where payments to vendors and employees are often in local currency, yet substantially all of the Company's revenues are realized in US dollars. Further, the Company holds a portion of its cash in currencies other the US dollar.

To manage this risk, the Company holds as small of an amount as practical in foreign currencies. To mitigate the Company’s exposure to changes in the Mexican peso, the Company may and has entered into forward currency contracts as it deems prudent. There are limits on the extent of such contracts, in excess of which Board approval is required.

There has been no notable change in the Company's approach to foreign currency risk management since the prior year.

For financial instruments denominated in foreign currencies as at December 31, 2018, a 10% change in the prevailing exchange rates as at December 31, 2018, with all other variables held constant, would have the following impact on the Company’s earnings:

Change in net income arising from:	Canadian dollars			Mexican pesos			Peruvian soles
10% appreciation of the USD against the currency	$	(38	)	$	(2,206	)	$	214
10% depreciation of the USD against the currency	$	62		$	2,345		$	(213	)

The closing exchange rates for December 31, 2018 of MXN/USD of 19.657 (2017: 19.735), PEN/USD of 3.370 (2017: 3.244) and CAD/USD of 1.365 (2017: 1.259) were used in the above analysis.

(d) Interest rate risk

Interest rate risk is the possibility that change in market interest rates will affect future cash flows. The Company is exposed to interest rate risk on its short-term deposits and cash and cash equivalents. The Company’s approach is to invest cash in savings accounts and guaranteed investment certificates at fixed and floating rates of interest over varying maturities. We manage this risk by monitoring changes in interest rates and by maintaining a relatively short duration for the Company's portfolio of cash equivalent securities. Many of these instruments can be immediately redeemed and those of a fixed term do not exceed one year.

There has been no notable change in the Company's approach to interest rate risk management since the prior year.

For interest-bearing financial instruments as at December 31, 2018, an increase or decrease in interest rate of 1% applied would increase or decrease net income and comprehensive income by $89.

(e) Commodity price risk

The Company is subject to risk from fluctuations in the market prices of silver, gold, lead and zinc. Such fluctuations directly affect the Company's reported revenues.

The profitability of the Company’s operations is highly correlated to the market prices of these metals, as is the ability of the Company to develop its mineral properties and exploration and evaluation assets. The value of trade receivables at the reporting date also depends on changes in metal prices until finalization of sales prices per the contractual quotational period.

If metal prices decline for a prolonged period below the cost of production of the Company's mines, it may not be economically feasible to continue production.

The Company has a stated policy that it will not engage in long-term hedging of silver prices.

39

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

There has been no notable change in the Company's approach to commodity price risk management since the prior year.

For provisionally priced trade receivables, a 10% change in the prevailing commodity prices as at December 31, 2018, with all other variables held constant, would have the following impact on the Company’s earnings:

	10% change in silver		10% change in gold		10% change in lead		10% change in zinc
Change in net income	$	740	$	566	$	123	$	111

21. COMMITMENTS AND CONTINGENCIES

(a) Commitments

As of December 31, 2018, the Company had the following commitments:

	Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	1,124	$	275	$	550	$	299	$	–
Drilling services		146		146		–		–		–
Equipment purchases		362		362		–		–		–
Total commitments	$	1,632	$	783	$	550	$	299	$	–

(b) Pending acquisition

On September 23, 2018, the Company announced that it had entered into an Implementation Deed with Beadell, pursuant to which it had agreed to acquire all of the issued ordinary shares of Beadell by means of a Beadell scheme of arrangement ("Scheme") under the Australian Corporations Act 2001. Upon completion of the transaction, existing Beadell and Great Panther shareholders are expected to own approximately 38% and 62%, respectively, of the combined company.

The Scheme received approval by a simple majority of the Company’s shareholders present in person or by proxy at a special meeting of shareholders on February 11, 2019, as well as by the TSX.

On February 12, 2019 the Scheme received the approval of Beadell shareholders present and voting at the meeting of Beadell shareholders, which required approval by at least 75% of the number of votes cast, and 50%. The Scheme was subsequently approved by the Australian Court on February 15, 2019.

Completion of the transaction is subject to customary conditions for a transaction of this nature and receipt of applicable regulatory, third-party and other creditor approvals and consents on terms satisfactory to the Company as may be required to effect and complete the transaction. To date, all closing conditions have been met or waived by the Company and completion is expected in early March.

Pursuant to the Implementation Deed and Scheme:

· Beadell shareholders will receive 0.0619 of the Company’s common shares for each Beadell ordinary share held (the “Exchange Ratio”). Based on the estimated number of Beadell shares outstanding at the time the Implementation Deed was entered into, the Company expects to issue up to 105,588,208 common shares of the Company to Beadell Shareholders at the implementation of the Scheme (including up to 1,993,346 common shares to be issued as consideration for Beadell shares issuable upon exercise or exchange of outstanding Beadell Options and Beadell Performance Rights).

40

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

· Additional common shares of the Company may be issued in connection with Beadell's options and performance rights. Beadell options and performance rights must (unless the requirement is waived) have been vested and exercised in exchange for Beadell ordinary shares or have been terminated.

· Under concurrent arrangements, each Beadell warrant holder will receive a number of Company share purchase warrants equal to the number of their Beadell warrants multiplied by the Exchange Ratio at a price adjusted in accordance with the Exchange Ratio, and otherwise on the same terms and conditions as the original warrant.

(c) Contingencies

(i) GMC

Tailings storage

In February 2016, the Mexican national water authority, Comisión Nacional del Agua ("CONAGUA"), required that the Company make formal applications for permits associated with the occupation and construction of the tailings storage facility ("TSF") at the GMC. The Company filed its applications, and the authorities conducted an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. CONAGUA responded in February 2019 requesting additional technical information. The Company is currently reviewing the request and will provide its response in due course.

Additional water use permits

Since the February 2016 correspondence with CONAGUA, the Company has also determined through its own undertakings, that additional CONAGUA permits may be needed in connection with water discharge and water use at the GMC TSF and at its San Ignacio Mine. The Company is assessing technical options and is confirming if additional water use permits are required. The Company believes that it will be able to address or mitigate the need for any necessary water discharge and use permits without any impact to its operations, but cannot provide complete assurance that there is no risk in this regard.

Amendment to Environmental Impact Statement related to expansion of existing tailings dam

In July 2017, the Company submitted to the Mexican environmental permitting authority, Secretaría del Medio Ambiente y Recursos Naturales ("SEMARNAT"), an amendment to the Environmental Impact Statement (“EIS”) requesting an expansion of the existing tailings dam, and subsequently provided further information to the SEMARNAT as requested. This is under review by the regulator, and if approved, will satisfy a requirement by CONAGUA for the processing of permits noted above.

The Company believes its current tailings footprint can be maintained and can support operations at the GMC until at least 2021. Based on its meetings and other communication with CONAGUA, the Company believes that it will be able to obtain all the above noted permits, with no suspension of operations at the GMC. However, the Company cannot assure that the tailings permits will be obtained or renewed on reasonable terms, or at all. Delays or a failure to obtain such required permits, or the issuance of permits on unfavourable terms or the expiry, revocation or failure by the Company to comply with the terms of any such permits, if obtained, could limit the ability of the Company to expand the tailings facility and could adversely affect the Company’s ability to continue operating at the GMC. In either case, the Company’s results of operations could be adversely affected.

Wastewater discharge at San Ignacio

In June 2016, the Company filed a request for authorization to discharge wastewater in San Ignacio. The authority conducted a technical visit in November 2016. In April 2018, the authority requested additional information, which the Company promptly submitted. As of the date of this document, the resolution is pending. The Company is also preparing requests for similar permits for other areas of the Company's operation.

41

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

(ii) Coricancha

Coricancha has been on care and maintenance since August 2013 and was operated by a number of previous companies before that date. It is subject to oversight by the Organismo de Evaluación y Fiscalización Ambiental ("OEFA"), the Peruvian public agency responsible for environmental assessment and inspection, and by the Organismo Supervisor de la Inversión en Energía y Minería ("OSINERGMIN"), which is the Peruvian regulatory body with oversight responsibility over energy and mining companies.

Fines and sanctions

Nyrstar N.V. (“Nyrstar”), the previous owner of Coricancha, has agreed to reimburse the Company for all fines or sanctions that resulted from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4,000. Accordingly, a reimbursement right in the amount of $1,528 has been recorded in respect of the following fines or sanctions:

· $1,351 for fines and sanctions which may be levied by OSINERGMIN. In addition, there are open administrative and judicial proceedings by OSINERGMIN, the outcomes of which are not yet readily determinable.

· $177 for fines and sanctions to be levied by OEFA. In addition, there are open administrative and judicial proceedings by OEFA, the outcomes of which are not yet readily determinable.

The Company has accrued for and recorded a further reimbursement right of $384 for certain civil lawsuits filed by individuals and former suppliers.

Legacy tailings facilities

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the Ministry of Energy and Mines (the “MEM”), the relevant regulatory body. In addition, as part of the purchase of Coricancha completed in June 2017, the Company has an agreement with Nyrstar for the reimbursement of the cost of these reclamation activities. The Company is seeking approval of a modification to a remediation plan from MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. Concurrently, the Company has undertaken various legal measures to protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities which may be initiated as a result of the change in timing of reclamation under the proposed plan. Although the Company has all necessary permits to restart Coricancha, if this matter is not resolved favourably, it may impact the Company’s stated plans and objectives for Coricancha.

(iii) Topia

Reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF, have led to a broader review by the Mexican environmental compliance authority, the Procuraduría Federal de Protección al Ambiente ("PROFEPA"), and by the Company of all of Topia operations’ permitting status and environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, the Topia Mine has been accepted into a voluntary environmental audit program supported by PROFEPA. The audit commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings and has until January 2020 to complete this. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates will be submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program further reviews will not lead to future suspensions of operations.

42

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

22. RELATED PARTY TRANSACTIONS

The Company's related parties include:

Related party	Nature of the relationship
Key management personnel	Officers and directors of the Company
Platoro Resource Corp. (“Platoro”)	Platoro is a private company controlled by a director of the Company. Platoro provided geological and investor relations services to the Company. These transactions occurred in the normal course of business, and were conducted on terms substantially similar to arm’s length transactions.

(a) Services

The Company entered into the following related party transactions:

	2018		2017
Consulting services provided by Platoro	$	22	$	11

(b) Key management compensation

Key management personnel includes the Company’s Directors, President and Chief Executive Officer, Chief Financial Officer, and vice presidents. The amounts owing to key management personnel are included in trade and other payables. The Company is committed to making severance payments amounting to approximately $1,800 to certain officers and management in the event of a change in control of the Company.

Compensation to key management personnel consisted of the following:

	2018		2017
Salaries and benefits	$	1,894	$	2,514
Directors’ fees		417		320
Share-based compensation		1,033		889
	$	3,344	$	3,723

Directors fees for the year ended December 31, 2018 include $77 for special committee fees (2017 – $23).

(c) Balances outstanding at the Reporting Date:

	December 31, 2018		December 31, 2017
Payable to Platoro	$	–	$	11

These amounts owing were included in trade payables.

43

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

23. SUPPLEMENTAL CASH FLOW INFORMATION

Other non-cash items are comprised of the following:

	2018			2017
Accretion	$	897		$	791
Change in reclamation and remediation provision		(214	)		24
Interest income		(1,518	)		(808	)
Interest expense		20			171
Loss (gain) on disposal of fixed assets		41			(217	)
	$	(774	)	$	(39	)

The non-cash investing and financing activities of the Company include the following:

	2018			2017
Change in reclamation and remediation provision included within mineral properties and plant and equipment, exploration and evaluation assets	$	(713	)	$	40
Change in trade payables related to mineral properties, plant and equipment		–			96
	$	(713	)	$	136

24. OPERATING SEGMENTS

The Company’s operations are all within the mining sector, consisting of two operating segments both of which are located in Mexico, plus one segment associated with Coricancha, one Exploration segment and one Corporate segment. Due to diversities in geography and production processes, the Company operates the GMC and the Topia Mine separately, with separate budgeting and evaluation of results of operations and exploration activities. The Coricancha segment contains the net assets associated with Coricancha and the cost of its exploration, evaluation and development activities are separately budgeted and reported. The Corporate segment provides financial, human resources and technical support to the two mining operations and Coricancha. The GMC operation produces silver and gold in concentrate, and the Topia operation produces silver, gold, lead and zinc in concentrate, for refining off site. The Exploration segment includes the Company’s exploration and evaluation assets at Santa Rosa, El Horcón, Plomo and Argosy.

44

GREAT PANTHER SILVER LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of US dollars, unless otherwise noted)

For the years ended December 31, 2018 and 2017

	Operations
	GMC		Topia		Coricancha			Exploration			Corporate			Total
2018
Revenue	$	39,635	$	19,799	$	–		$	–		$	–		$	59,434
Exploration and evaluation expenses		1,456		298		7,101			243			2,231			11,329
Income (loss) before income taxes		1,028		3,922		(7,103	)		(3,032	)		(4,226	)		(9,411	)
Net income (loss)		1,120		3,981		(7,103	)		(3,032	)		(5,029	)		(10,063	)
Additions to non-current assets		959		773		(536	)		–			–			1,196
As at December 31, 2018
Total assets	$	7,990	$	12,813	$	27,538		$	2,427		$	62,008		$	112,776
Total liabilities	$	5,995	$	2,395	$	27,278		$	–		$	4,452		$	40,120
2017
Revenue	$	49,366	$	14,380	$	–		$	–		$	–		$	63,746
Exploration and evaluation expenses		2,606		528		2,875			407			1,059			7,475
Income (loss) before income taxes		10,865		1,843		(2,260	)		(1,491	)		(6,201	)		2,756
Net income (loss)		9,997		1,777		(2,260	)		(1,491	)		(6,733	)		1,290
Additions to non-current assets		2,122		2,307		15,194			–			–			19,623
As at December 31, 2017
Total assets	$	13,887	$	14,102	$	30,050		$	2,568		$	61,273		$	121,880
Total liabilities	$	5,867	$	2,260	$	27,189		$	54		$	5,369		$	40,739

45

EX-99.3

Exhibit 99.3

 

GREAT PANTHER SILVER LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2018

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 1 

TABLE OF CONTENTS

PROFILE	3
SIGNIFICANT EVENTS	4
OPERATIONAL AND FINANCIAL HIGHLIGHTS	7
OPERATIONS	8
ADVANCED PROJECTS	19
SELECTED ANNUAL INFORMATION	20
SUMMARY OF SELECTED QUARTERLY INFORMATION	21
RESULTS OF OPERATIONS	23
OUTLOOK	29
METAL PRICE SENSITIVITIES	30
LIQUIDITY AND CAPITAL RESOURCES	31
TRANSACTIONS WITH RELATED PARTIES	33
CRITICAL ACCOUNTING ESTIMATES	33
CHANGES IN ACCOUNTING POLICIES	34
NEW ACCOUNTING STANDARDS	34
FINANCIAL INSTRUMENTS	34
SECURITIES OUTSTANDING	35
NON-GAAP MEASURES	35
INTERNAL CONTROLS OVER FINANCIAL REPORTING	42
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS	43
CAUTIONARY NOTE TO U.S. INVESTORS	45

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 2 

MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the annual audited consolidated financial statements of Great Panther Silver Limited (“Great Panther” or the “Company”) for the year ended December 31, 2018 and the notes related thereto, which are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, and the most recent annual Form 40-F/Annual Information Form (“AIF”) on file with the US Securities and Exchange Commission (“SEC”) and Canadian provincial securities regulatory authorities.

All information in this MD&A is current as at February 28, 2019, unless otherwise indicated. All dollar amounts are expressed in US dollars (“USD”), unless otherwise noted.

This MD&A contains forward-looking statements and should be read in conjunction with the Cautionary Statement on Forward-Looking Statements section at the end of this MD&A.

This MD&A contains references to non-GAAP measures. Refer to the section entitled Non-GAAP Measures for explanations of these measures and reconciliations to the Company’s reported financial results.

Some tables contained in this MD&A may not sum exactly, due to rounding.

PROFILE

Great Panther Silver Limited is a primary silver mining and exploration company listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE American trading under the symbol GPL. The Company’s wholly-owned mining operations in Mexico are the Topia Mine (“Topia”), and the Guanajuato Mine Complex (“GMC”) which comprises the Company’s Guanajuato Mine, the San Ignacio Mine (“San Ignacio”), and the Cata processing plant. The GMC produces silver and gold concentrate and is located in central Mexico approximately 30 kilometres from the Guanajuato International Airport. The Topia Mine is located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico, and produces concentrates containing silver, gold, lead and zinc.

On September 23, 2018, the Company announced it had signed an agreement to acquire Beadell Resources Limited (“Beadell”), a gold mining company listed on the Australian Securities Exchange. Beadell operates the 100% owned Tucano Gold Mine (“Tucano”) in Amapá state, northern Brazil. Tucano is part of an approximate 2,500 square kilometre land package which is highly prospective and located in the under-explored ‘Birimian age’ greenstone terrane. Beadell has a pipeline of high potential in-mine and near-mine resource growth opportunities, including multiple in-mine lease discoveries. All consents, shareholder, court and regulatory approvals for the acquisition have been obtained and all closing conditions have been satisfied. The Company anticipates the acquisition will be completed in early March 2019.

The closing of the Beadell transaction will create a new emerging intermediate and growth-oriented precious metals producer focused on the Americas with a strong balance sheet, excellent geographic diversity across three leading mining jurisdictions, and a diverse asset portfolio including three producing mines, an advanced stage project, and significant exploration potential.  

In June 2017, the Company acquired the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead-zinc mine and 600 tonnes per day processing facility. Coricancha is located in the central Andes of Peru, approximately 90 kilometres east of Lima, and has been on care and maintenance since August 2013. The Company filed a positive Preliminary Economic Assessment (“PEA”) on Coricancha in July 2018, and is currently undertaking a Bulk Sample Program (“BSP” and as further defined in the foregoing) to evaluate and confirm assumptions in the PEA. The BSP is expected to be completed before the end of the current quarter and the Company expects to make a decision on whether to restart the mine shortly thereafter.

The Company also owns several exploration properties which include: El Horcón, Santa Rosa, and Plomo in Mexico, and Argosy in Canada. The El Horcón property is located 100 kilometres by road northwest of Guanajuato, Santa Rosa is located 15 kilometres northeast of Guanajuato, and the Plomo property is located in Sonora, Mexico. The Argosy property is located in the Red Lake Mining District in northwestern Ontario, Canada.

Additional information on the Company, including its AIF, can be found on SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.shtml or on the Company’s website at www.greatpanther.com.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 3 

SIGNIFICANT EVENTS

Acquisition of Beadell

On September 23, 2018, the Company announced that it had entered into a scheme implementation deed (the "Implementation Deed") with Beadell, pursuant to which it will acquire all of the issued ordinary shares of Beadell by means of a scheme of arrangement ("Scheme") under the Australian Corporations Act 2001 (the “Acquisition”).

Pursuant to the Implementation Deed and Scheme:

· Beadell shareholders will receive 0.0619 of the Company’s common shares for each Beadell share held (the “Exchange Ratio”). Upon completion of the Acquisition, Beadell shareholders are expected to own approximately 103.6 million of the Company’s common shares or approximately 38% of the Company’s pro-forma outstanding common shares, exclusive of shares that may be issued in connection with Beadell's options and performance rights. In order to be exchanged, Beadell options and performance rights must (unless the requirement is waived) have been vested and exercised in exchange for Beadell Shares, or will otherwise terminate.

· Under concurrent arrangements, each Beadell warrant holder will receive a number of Company share purchase warrants equal to the number of their Beadell warrants multiplied by the Exchange Ratio at a price adjusted in accordance with the Exchange Ratio, and otherwise on the same terms and conditions as the original warrant.

· The Implementation Deed included customary deal protection provisions, including no solicitation of alternative transactions by Beadell, a right in favour of Great Panther to match any potential superior proposals and reimbursement fees payable by Beadell or Great Panther, as the case may be, in certain events.

On February 11, 2019, the Scheme was approved (96% in favour) by the Company’s shareholders.

On February 12, 2019, the Scheme was also approved by 97% of the number of votes cast and 75% of the number of Beadell shareholders present and voting, at the meeting of Beadell shareholders.

Completion of the Acquisition is subject to customary conditions for a transaction of this nature and receipt of applicable court and regulatory approvals and consents on terms satisfactory to Great Panther as may be required to effect and complete the transaction. At the date of this MD&A all consents, court, regulatory and shareholder approvals have been obtained, and all closing conditions have been satisfied or waived by Great Panther. Completion is expected in early March 2019.

Some of the key closing conditions that were completed or satisfied include:

· The negotiation of a modification to MACA Limited’s ("MACA") outstanding loan due from Beadell on terms satisfactory to Great Panther. An agreement to modify the terms was reached between Great Panther, Beadell and MACA on November 19, 2018 (the “MACA Agreement”). Under the agreement, MACA agreed to consent to the change of control, keep the loan in place with a term to June 2022, and other amendments with effect from the Completion Date.

· Certain arrangements relating to Beadell's outstanding $10 million convertible debentures (the "Convertible Debentures") governed by a debenture indenture under which, upon a change of control (“Change of Control”), Beadell is required to make an offer (the "Change of Control Purchase Offer") to purchase all convertible debentures at a price equal to 105% of the principal amount, plus accrued and unpaid interest. The Company has waived the condition, and it is expected that Beadell will make the Change of Control Purchase Offer under the Company's direction and that it is also anticipated that the Company will enter into an amended and restated or supplemental debenture indenture pursuant to which the Company will expressly assume the obligations of Beadell and the holders of Convertible Debentures will be entitled to receive Great Panther Shares on the conversion thereof, to the extent that any Convertible Debentures remain outstanding after the Change of Control Purchase Offer.

· Consent to the change of control on behalf of Beadell's senior secured lenders in Brazil (Santander and ITAU), which has been obtained.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 4 

On December 6, 2018, the Company entered into a loan agreement (the "Loan Agreement") with Beadell pursuant to which the Company agreed to advance Beadell and its subsidiary, Beadell Brasil Ltda. ("Beadell Brasil"), as joint and several borrowers, a non-revolving term loan in the principal amount of $5.0 million (the “Loan”). The Loan bears interest at the rate of 14% per year in arrears and had a term to January 15, 2019. On January 14, 2019, the Company accepted partial repayment of $3.0 million of the principal amount advanced in connection with the Loan Agreement, plus interest and fees accrued to date, and agreed to extend the maturity date of the remaining $2.0 million to March 18, 2019 in order to provide Beadell with additional funds for general working capital and operating requirements.

On January 29, 2019, Beadell issued 2019 production guidance of 145,000 to 155,000 gold ounces at an all-in sustaining cost of $1,000 to $1,100 per ounce. Great Panther issued 2019 guidance of 3,700,000 – 4,000,000 silver equivalent ounces on January 17, 2019 at an all-in sustaining cost (before head office G&A) of $10.00 - $12.00 per silver payable ounce (see Outlook section for further details).

Following the closing of the Acquisition, the Company will review Beadell’s guidance and provide an update, if necessary. The Company’s focus for Beadell in 2019 will be integration, realization of cost synergies by rationalizing Beadell’s current Australian head office, and identifying and implementing cost-saving measures to optimize profitability of Tucano. Beadell’s operating team in Brazil will remain in place and there has already been a significant degree of coordination and integration with Great Panther’s head office through regularly scheduled meetings, regular communication, site visits and sharing of information and data. Great Panther also plans to immediately work with Beadell’s existing exploration team to develop a program aimed at capitalizing on Tucano’s significant exploration potential.

Coricancha update

On May 31, 2018, the Company reported the results of a positive PEA for Coricancha and filed a full PEA technical report on SEDAR on July 13, 2018. Following this, the Company initiated a 6,000 tonne trial stope and bulk sample program to further de-risk the project. The objective of the Bulk Sample Program is to confirm expectations regarding throughput, grades, and recoveries. Following the completion of the BSP, the Company expects to be able to make a decision by the end of March 2019 on whether to commence the restart of Coricancha.

To date, 160 metres of waste development and 449 metres of mineralized development have been advanced, representing 100% of the BSP program The development reached mineralization at the Constancia vein and 4,450 tonnes of ore has been accumulated on stockpiles which the Company plans to process in the concentrator by the end of March. This represents about 74% of the total projected mineralized material for the BSP.

Further, the BSP has advanced in the following key areas:

· Successful tests of the crusher, ball mill and flotation facilities have been completed;

· Refurbishment of the concentrator plant and surface facilities has been completed;  

· Rehabilitation of surface roads and underground mine rehabilitation has been completed;

· Ore passes and chutes have been cleared and are operable;

· Many key personnel hired to execute the BSP are also in place to support a transition to full scale mining, should the Company make a decision to restart the mine.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 5 

GMC

On January 25, 2018, the Company provided an update to the Mineral Resource at the GMC, with an effective date of August 31, 2017. Compared to the previous update which had an effective date of August 31, 2016, Measured and Indicated ("M&I") Mineral Resources increased by 91% to 13,619,794 silver equivalent ounces (“Ag eq oz”); due to increases in resource categories at both the San Ignacio and Guanajuato mines. Specifically, M&I Mineral Resources increased by 110% to 11,362,323 Ag eq oz at the San Ignacio Mine and by 31% to 2,257,472 Ag eq oz at the Guanajuato Mine, compared to the previous update. Inferred Mineral Resources at the GMC remained essentially unchanged at 6,997,306 Ag eq oz.

Late in the third quarter of 2018, in order to lower costs and mitigate the impact of lower metal prices, the Company undertook a restructuring at GMC to reduce mining from the Guanajuato Mine and to increase output from the San Ignacio mine. In addition, the Company undertook other cost reduction measures and started to see the impact of these measures in the fourth quarter. Further restructuring measures were taken at the start of 2019 which included an optimization strategy under which the entire production for GMC will be sourced from the lower cost San Ignacio Mine, enabling a focused exploration program for the Guanajuato Mine aimed at growing higher margin resources.

Topia

On January 29, 2019, the Company provided an update to the Mineral Resource at Topia, with an effective date of July 31, 2018. Compared to the previous update which had an effective date of November 30, 2014, Measured and Indicated ("M&I") Mineral Resources increased by 28% to 14,770,000 Ag eq oz. Inferred Mineral Resources decreased by 3% to 10,720,000 Ag eq oz compared to the previous update.

The Company was able to increase output at Topia in 2018 and has plans to increase its processing capacity in 2019 by approximately 25%.

Other events

On February 22, 2018, Great Panther regretfully announced the passing away of Mr. Kenneth W. Major, who served as Director of the Company since March 2011, including distinguished service as Chair of the Safety, Health and Environment Committee, in addition to service on other committees of the Board of Directors. In Ken’s honour, the Company has established the Kenneth W. Major Safety Award to recognize Great Panther employees annually who exemplify Ken’s value of safety in the workplace.

On May 7, 2018, the Company announced that Mr. Ali Soltani would be stepping down from his role as Chief Operating Officer (“COO”) of the Company effective May 31, 2018. Mr. Soltani continued to provide services to the Company on a part-time basis as Senior Technical Advisor for several months thereafter.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 6 

OPERATIONAL AND FINANCIAL HIGHLIGHTS

	Q4 2018		Q4 2017		Change			2018		2017		Change
OPERATING RESULTS
Tonnes milled		89,270		98,396		-9	%		374,229		373,709		0	%
Silver equivalent ounces (“Ag eq oz”) produced1		951,784		1,065,773		-11	%		4,170,966		3,978,731		5	%
Silver ounces produced		438,152		514,218		-15	%		1,857,864		1,982,685		-6	%
Gold ounces production		4,101		5,931		-31	%		20,161		22,501		-10	%
Payable silver ounces		455,146		516,078		-12	%		1,813,563		1,937,702		-6	%
Ag eq oz sold1		944,563		1,038,023		-9	%		3,927,639		3,793,516		4	%
Cost per tonne milled2	$	116	$	116		0	%	$	121	$	106		14	%
Cash cost2	$	10.37	$	7.25		43	%	$	8.93	$	5.76		55	%
Cash cost per Ag eq oz2	$	12.88	$	13.18		-2	%	$	12.63	$	12.11		4	%
AISC, excluding corporate G&A expenditures 2	$	12.37	$	10.83		14	%	$	11.94	$	10.77		11	%
AISC2	$	16.06	$	14.72		9	%	$	15.63	$	15.07		4	%
AISC per Ag eq oz2	$	15.62	$	16.89		-8	%	$	15.72	$	16.87		-7	%

(in thousands, except per ounce, per share, and exchange rate figures)	Q4 2018			Q4 2017			Change			2018			2017		Change
FINANCIAL RESULTS
Revenue	$	13,647		$	17,384			-21	%	$	59,434		$	63,746		-7	%
Mine operating earnings before non-cash items2	$	2,017		$	4,962			-59	%	$	12,020		$	21,994		-45	%
Mine operating earnings	$	1,206		$	3,755			-68	%	$	8,185		$	17,689		-54	%
Net income (loss)	$	(3,559	)	$	(1,918	)		-86	%	$	(10,063	)	$	1,290		-880	%
Adjusted EBITDA2	$	(3,271	)	$	904			-462	%	$	(6,399	)	$	6,009		-206	%
Operating cash flows before changes in non-cash net working capital	$	(3,776	)	$	618			-711	%	$	(6,722	)	$	6,369		-206	%
Cash and short-term deposits at end of period	$	50,581		$	56,888			-11	%	$	50,581		$	56,888		-11	%
Net working capital at end of period	$	61,851		$	65,965			-6	%	$	61,851		$	65,965		-6	%
Average realized silver price per oz 3	$	14.80		$	16.86			-12	%	$	15.56		$	17.11		-9	%
Average realized gold price per oz 3	$	1,250		$	1,292			-3	%	$	1,278		$	1,291		-1	%
Earnings (loss) per share – basic and diluted	$	(0.02	)	$	(0.01	)		-100	%	$	(0.06	)	$	0.01		-700	%
MXN/USD	$	19.86		$	18.95			5	%	$	19.25		$	18.93		2	%

¹ Silver equivalent ounces are referred to throughout this document. For 2018, Ag eq oz are calculated using a 80:1 Ag:Au ratio and ratios of 1:0.0636 and 1:0.0818 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2018, and they were applied retroactively effective January 1, 2018. As a result, the metrics in silver equivalent ounces for the first and second quarter of 2018 have been restated. Comparatively, Ag eq oz for 2017 are calculated using a 70:1 Ag:Au ratio and ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2017.

² The Company has included the non-GAAP performance measures cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC excluding corporate G&A expenditures, AISC, AISC per Ag eq oz, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. The computation of cash cost per Ag eq oz reflects actual realized prices for the by-products. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

³ Average realized silver and gold prices are prior to smelting and refining charges.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 7 

OPERATIONS

Consolidated operations

	Q4 2018		Q4 2017		Change			% Change			Q3 2018		Change			% Change			2018		2017		Change			% Change
Tonnes mined 1		92,158		97,407		(5,249	)		-5	%		92,997		(839	)		-1	%		376,743		370,017		6,726			2	%
Tonnes milled		89,270		98,396		(9,126	)		-9	%		92,920		(3,650	)		-4	%		374,229		373,709		520			0	%
Production
Silver (ounces)		438,152		514,218		(76,066	)		-15	%		448,840		(10,688	)		-2	%		1,857,864		1,982,685		(124,821	)		-6	%
Gold (ounces)		4,101		5,931		(1,830	)		-31	%		4,737		(636	)		-13	%		20,161		22,501		(2,340	)		-10	%
Lead (tonnes)		474		441		33			7	%		572		(98	)		-17	%		1,958		1,291		667			52	%
Zinc (tonnes)		661		551		110			20	%		639		22			3	%		2,361		1,757		604			34	%
Ag eq oz		951,784		1,065,773		(113,989	)		-11	%		1,023,128		(71,344	)		-7	%		4,170,966		3,978,731		192,235			5	%
Sales
Payable silver ounces		455,146		516,078		(60,932	)		-12	%		402,150		52,996			13	%		1,813,563		1,937,702		(124,139	)		-6	%
Ag eq oz sold		944,563		1,038,023		(93,460	)		-9	%		847,317		97,246			11	%		3,927,639		3,793,516		134,123			4	%
Cost metrics
Cost per tonne milled 2	$	116	$	116	$	–			0	%	$	128	$	(12	)		-9	%	$	121	$	106	$	15			14	%
Cash cost 2	$	10.37	$	7.25	$	3.12			43	%	$	12.79	$	(2.42	)		-19	%	$	8.93	$	5.76	$	3.17			55	%
Cash cost per Ag eq oz 2	$	12.88	$	13.18	$	(0.30	)		-2	%	$	13.56	$	(0.68	)		-5	%	$	12.63	$	12.11	$	0.52			4	%
AISC excluding corporate G&A expenditures 2	$	12.37	$	10.83	$	1.54			14	%	$	16.09	$	(3.72	)		-23	%	$	11.94	$	10.77	$	1.17			11	%
AISC 2	$	16.06	$	14.72	$	1.34			9	%	$	19.74	$	(3.68	)		-19	%	$	15.63	$	15.07	$	0.56			4	%
AISC per Ag eq oz 2	$	15.62	$	16.89	$	(1.27	)		-8	%	$	16.86	$	(1.24	)		-7	%	$	15.72	$	16.87	$	(1.15	)		-7	%

¹ Excludes purchased ore.

² The Company has included the non-GAAP performance measures cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC excluding corporate G&A expenditures, AISC, AISC per Ag eq oz, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 8 

Tonnes milled 

 

Tonnes milled for the year ended December 31, 2018 remained relatively unchanged compared to the year ended December 31, 2017.

Tonnes milled for the fourth quarter of 2018 were 89,270 tonnes, a 9% decrease from 98,396 tonnes compared to the fourth quarter of 2017. The decrease was mainly due to the reduction of mining activities of the higher cost areas at Guanajuato Mine in order to reduce overall unit costs and commence a focused drilling program for the mines.

Compared to the third quarter of 2018, the throughput during the fourth quarter of 2018 decreased by 4% which can also be attributed to the above noted restructuring activities at Guanajuato Mine.

Production

Silver equivalent ounces produced for the year ended December 31, 2018 increased 5% compared to the year ended December 31, 2017 primarily due to the current year revision in the Ag eq oz conversion ratios due to higher gold to silver price ratio, and higher silver and lead recoveries at Topia. These factors were partly offset by lower silver and gold grades at both GMC and Topia, and lower gold recovery at Topia.

Silver equivalent ounces for the fourth quarter of 2018 decreased 11% compared to the fourth quarter of 2017, predominantly due to the 13% decrease in mill throughput at GMC, the revision in the Ag eq oz conversion ratios, and lower silver and gold grades and gold recoveries at both GMC and Topia. These factors were partly offset by the 8% increase in mill throughput and higher zinc grades at Topia.

Silver equivalent ounces for the fourth quarter of 2018 decreased 7% compared to the third quarter of 2018 mainly due to the 4% decrease in throughput and lower metal recoveries at both GMC and Topia.

The lower production of silver and gold from GMC resulted from physical variability of the resource model and grades therein. In addition, the mining of narrower than planned vein widths increased mining costs per tonne of ore mined. Production also declined from restructuring initiatives taken to reduce mining from the Guanajuato Mine in order to lower costs and mitigate the impact of lower metal prices.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 9 

Cost per tonne milled

Cost per tonne milled for the year ended December 31, 2018 increased compared to the prior year due primarily to higher Mexican peso ("MXN") denominated production costs, as described in the section Results of Operations, which was partly offset by a weakening of the MXN to the USD.

Cost per tonne milled in the fourth quarter of 2018 remained unchanged compared to the fourth quarter of 2017.

Cost per tonne milled in the fourth quarter of 2018 decreased compared to the third quarter of 2018 due primarily to a decrease in MXN denominated production costs from the restructuring efforts undertaken at GMC to lower costs, and the weakening of the MXN to the USD. These factors were partly offset by a 4% decrease in mill throughput.

Cash cost and AISC

 

Cash cost

Cash cost for the year ended December 31, 2018 increased compared to the prior year primarily due to an increase in MXN denominated production costs at GMC for the factors noted above in the Production section ($3.50 per oz effect), lower payable silver ounces ($0.39 per oz effect) as well as a decrease in by-product credits associated with lower gold sales and lower realized average prices for gold, lead and zinc ($0.76 per oz effect). These factors were partly offset by lower smelting and refining charges ($1.10 per oz effect) and weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $0.38 per oz.

Cash cost in the fourth quarter of 2018 increased compared to the fourth quarter of 2017 primarily due to lower payable silver ounces ($1.22 per oz effect) as well as a decrease in by-product credits associated with lower gold sales ounces and lower realized average prices for gold, lead and zinc (together, a $4.83 per oz effect). These factors were partly offset by a decrease in MXN denominated production costs ($0.46 per oz effect), lower smelting and refining charges ($1.39 per oz effect) and weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $1.08 per oz.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 10 

Cash cost in the fourth quarter of 2018 decreased compared to the third quarter of 2018 primarily due to an increase in by-product credits associated mainly with higher gold sales ounces ($2.42 per oz effect), higher payable silver ounces ($1.49 per oz effect), and weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $1.10 per oz. These factors were partly offset by an increase in MXN denominated production costs as a concentrate shipment of approximately 90,000 Ag eq oz that missed the cut-off for revenue recognition as at the end of the third quarter was recognized in the fourth quarter ($2.43 per oz effect), and higher smelting and refining charges ($0.15 per oz effect).

Cash cost per Ag eq oz

Cash cost per Ag eq oz for the year ended December 31, 2018 increased compared to the prior year primarily due to the increase in MXN denominated production costs ($1.64 per Ag eq oz effect) and decrease in sales volumes ($0.54 per Ag eq oz effect). These factors were partly offset by the Ag eq oz conversion ratio revisions ($0.95 per Ag eq oz effect), lower smelting and refining charges ($0.51 per Ag eq oz effect), and a weakening of the MXN to the USD ($0.20 per Ag eq oz effect).

Cash cost per Ag eq oz in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to the decrease in MXN denominated production costs ($0.23 per Ag eq oz effect), a weakening of the MXN to the USD ($0.53 per Ag eq oz effect), lower smelting and refining charges ($0.69 per Ag eq oz effect), and the Ag eq oz conversion ratio revisions ($0.92 per Ag eq oz effect). These factors were partly offset by the decrease in sales volumes ($2.07 per Ag eq oz effect).

Cash cost per Ag eq oz in the fourth quarter of 2018 decreased compared to the third quarter of 2018 primarily due to the increase in sales volume ($1.40 per oz effect), and weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $0.59 per oz. These factors were partly offset by an increase in MXN denominated production costs as a concentrate shipment of approximately 90,000 Ag eq oz that missed the cut-off for revenue recognition as at end of the third quarter was recognized in the fourth quarter ($1.23 per oz effect), and higher smelting and refining charges ($0.07 per oz effect).

All-in sustaining cost

All-in sustaining cost for the year ended December 31, 2018 increased compared to the prior year primarily due to the increase in cash cost discussed above ($3.17 per oz effect), as well as a decrease in payable silver ounces which had the effect of further increasing AISC by $0.64 per oz. These were partly offset by lower sustaining EE&D expenses and capital expenditures (together, a $2.38 per oz effect), and lower general and administrative (“G&A”) expenses ($0.87 per oz effect).

All-in sustaining cost in the fourth quarter of 2018 increased compared to the fourth quarter of 2017 primarily due to the increase in cash cost discussed above ($3.12 per oz effect), as well as a decrease in payable silver ounces which had the effect of further increasing AISC by $1.00 per oz. These were partly offset by lower sustaining EE&D expenses and capital expenditures (together, a $2.26 per oz effect), and lower G&A expenses ($0.52 per oz effect).

All-in sustaining cost in the fourth quarter of 2018 decreased compared to the third quarter of 2018 primarily due to the decrease in cash cost as discussed above ($2.42 per oz effect), a decrease in payable silver ounces which had the effect of further decreasing AISC by $0.81 per oz, and a lower sustaining EE&D expenses and capital expenditures (together, a $0.86 per oz effect). This is partly offset by higher G&A expenses ($0.41 per oz effect).

AISC per Ag eq oz

AISC per Ag eq oz for the year ended December 31, 2018 decreased compared to the prior year primarily due to the Ag eq oz conversion ratio revisions ($1.20 per Ag eq oz effect), lower sustaining EE&D expenses and capital expenditures (together, $1.11 per Ag eq oz effect), and lower G&A expenses ($0.40 per Ag eq oz effect). These factors were partly offset by lower sales volumes ($1.04 per Ag eq oz effect), and the increase in cash cost per Ag eq oz ($0.52 per Ag eq oz effect) as described above.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 11 

AISC per Ag eq oz in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to the decrease in cash cost per Ag eq oz ($0.30 per Ag eq oz effect) as described above, the Ag eq oz conversion ratio revisions ($0.29 per Ag eq oz effect), lower sustaining EE&D expenses and capital expenditures (together, a $1.09 per Ag eq oz effect), and lower G&A expenses ($0.25 per Ag eq oz effect). These factors were partly offset by lower sales volumes ($0.66 per Ag eq oz effect).

AISC per Ag eq oz in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to the decrease in cash cost per Ag eq oz ($0.68 per Ag eq oz effect) as described above, lower sustaining EE&D expenses and capital expenditures (together, a $0.41 per Ag eq oz effect), and higher sales volumes ($0.34 per Ag eq oz effect). These factors were partly offset by lower G&A expenses ($0.20 per Ag eq oz effect).

Guanajuato Mine Complex

	Q4 2018			Q4 2017			Change			% Change			2018			2017			Change			% Change
Tonnes mined		71,943			80,863			(8,920	)		-11	%		301,014			316,810			(15,796	)		-5	%
Tonnes milled		70,387			80,896			(10,509	)		-13	%		300,624			319,963			(19,339	)		-6	%
Production
Silver (ounces)		254,405			332,203			(77,798	)		-23	%		1,096,757			1,386,964			(290,207	)		-21	%
Gold (ounces)		3,833			5,606			(1,773	)		-32	%		19,073			21,501			(2,428	)		-11	%
Silver equivalent ounces		561,083			724,643			(163,560	)		-23	%		2,622,623			2,892,068			(269,445	)		-9	%
Sales
Payable silver ounces		273,503			341,069			(67,566	)		-20	%		1,106,357			1,404,696			(298,339	)		-21	%
Ag eq oz sold		598,434			731,403			(132,969	)		-18	%		2,608,715			2,892,243			(283,528	)		-10	%
Average ore grades
Silver (g/t)		129			144			(15	)		-10	%		129			151			(22	)		-15	%
Gold (g/t)		2.01			2.48			(0.47	)		-19	%		2.27			2.41			(0.14	)		-6	%
Metal recoveries
Silver		87.2	%		88.5	%		-1.3	%		-1	%		87.9	%		89.2	%		-1.3	%		-1	%
Gold		84.4	%		87.0	%		-2.6	%		-3	%		87.1	%		86.9	%		0.2	%		0	%
Cost metrics
Cost per tonne milled1	$	99		$	99		$	–			0	%	$	107		$	92		$	15			16	%
Cash cost1	$	12.25		$	5.65		$	6.60			117	%	$	10.23		$	4.32		$	5.91			137	%
Cash cost per Ag eq oz1	$	14.08		$	12.49		$	1.59			13	%	$	13.54		$	11.58		$	1.96			17	%
AISC1	$	14.53		$	10.38		$	4.15			40	%	$	14.14		$	9.17		$	4.97			54	%
AISC per Ag eq oz1	$	15.13		$	14.69		$	0.44			3	%	$	15.20		$	13.94		$	1.26			9	%

Tonnes milled

Mill throughput for the year ended December 31, 2018 decreased compared to the prior year largely due to the reduction in mining at the Guanajuato Mine in order to reduce overall unit costs. This was partly offset by higher production from the San Ignacio Mine to make up for the reduction in mining at the Guanajuato Mine.

Mill throughput in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to the reduction in mining at the Guanajuato Mine in order to reduce overall unit costs and complete a focused drill program for the mine.

¹ Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 12 

Production

Metal production for the year ended December 31, 2018 decreased compared to the prior year due to lower average silver and gold grades, lower mill throughput and lower silver recovery. These were partly offset by the revision in the Ag eq oz conversion ratios.

Metal production in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 mainly due to lower throughput (as a result of the aforementioned restructuring at the Guanajuato Mine), lower average silver and gold grades, and lower silver and gold recoveries.

Cost per tonne milled

Cost per tonne milled for the year ended December 31, 2018 increased compared to the prior year primarily due to higher MXN denominated production costs ($11 per tonne effect) and decreased mill throughput ($6 per tonne effect). These factors were partly offset by a weakening of the MXN to the USD ($2 per tonne effect).

Cost per tonne milled in the fourth quarter of 2018 remained unchanged compared to the fourth quarter of 2017.

Cash cost

Cash cost for the year ended December 31, 2018 increased by $5.91 per oz compared to the prior year primarily due to lower gold by-product credits ($3.08 per oz effect), higher MXN production costs ($2.66 per oz effect), and lower payable silver ounces, which had the impact of increasing cash cost on a per-unit basis by $1.17 per oz. These factors were partly offset by a weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $0.51 per oz, and lower smelting and refining charges ($0.49 per oz effect).

Cash cost in the fourth quarter of 2018 increased by $6.60 per oz compared to the fourth quarter of 2017 primarily due to lower gold by-product credits ($6.24 per oz effect), and lower payable silver ounces, which had the impact of increasing cash cost on a per-unit basis by $2.43 per oz. These factors were partly offset by a weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $1.12 per oz, lower MXN production costs ($0.57 per oz effect), and lower smelting and refining charges ($0.38 per oz effect).

Cash cost per Ag eq oz

Cash cost per Ag eq oz for the year ended December 31, 2018 increased by $1.96 per Ag eq oz compared to the prior year primarily due to lower Ag eq oz sold ($2.31 per Ag eq oz effect) and higher MXN production costs ($1.13 per Ag eq oz effect). These were partly offset by the Ag eq oz conversion ratio revisions ($1.05 per Ag eq oz effect), a weakening of the MXN to the USD ($0.22 per Ag eq oz effect), and lower smelting and refining charges ($0.21 per Ag eq oz effect).

Cash cost per Ag eq oz in the fourth quarter of 2018 increased by $1.59 per Ag eq oz compared to the fourth quarter of 2017 primarily due to lower Ag eq oz sold ($3.53 per Ag eq oz effect). These were partly offset by the lower MXN production costs ($0.27 per Ag eq oz effect), Ag eq oz conversion ratio revisions ($0.97 per Ag eq oz effect), a weakening of the MXN to the USD ($0.52 per Ag eq oz effect), and lower smelting and refining charges ($0.18 per Ag eq oz effect).

All-in sustaining cost

All-in sustaining cost for the year ended December 31, 2018 increased compared to the prior year primarily due to the increase in cash cost ($5.91 per oz effect) as described above. The lower number of payable silver ounces also increased AISC on a per ounce basis ($1.31 per oz effect). These factors were partly offset by lower sustaining EE&D expenses ($1.31 per oz effect) and lower capital expenditures ($0.94 per oz effect).

All-in sustaining cost in the fourth quarter of 2018 increased compared to the fourth quarter of 2017 primarily due to the increase in cash cost ($6.60 per oz effect) as described above. The lower number of payable silver ounces also increased AISC on a per ounce basis ($1.17 per oz effect). These factors were partly offset by lower sustaining EE&D expenses ($2.89 per oz effect) and lower capital expenditures ($0.73 per oz effect).

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 13 

AISC per Ag eq oz

AISC per Ag eq oz for the year ended December 31, 2018 increased compared to the prior year primarily due to the increase in cash cost per Ag eq oz ($1.96 per Ag eq oz effect) as described above and lower Ag eq oz sales volume ($1.30 per Ag eq oz effect). These factors were partly offset by the Ag eq oz conversion ratio revisions ($1.05 per Ag eq oz effect), lower sustaining EE&D expenses ($0.55 per oz effect), and lower capital expenditures ($0.40 per Ag eq oz effect).

AISC per Ag eq oz in the fourth quarter of 2018 increased compared to the fourth quarter of 2017 primarily due to the increase in cash cost per Ag eq oz ($1.59 per Ag eq oz effect) as described above and lower Ag eq oz sales volume ($0.69 per Ag eq oz effect). These factors were partly offset by the Ag eq oz conversion ratio revisions ($0.19 per Ag eq oz effect), lower sustaining EE&D expenses ($1.32 per oz effect), and lower capital expenditures ($0.33 per Ag eq oz effect).

Development

Metres of development	Q4 2018		Q4 2017		FY 2018		FY 2017
Guanajuato Mine		81		727		2,197		972
San Ignacio Mine		585		326		2,558		3,649
Total metres of development		666		1,053		4,755		4,621

For the year ended December 31, 2018, mine and exploration development at GMC increased compared to the same period in 2017 in order to access lower elevation ore bodies at the Guanajuato Mine during the first nine months of 2018.

The decrease in mine and exploration development at GMC for the three months ended December 31, 2018 compared to the same period in 2017 was mainly due to the changes in mine plan undertaken by the Company commencing in the third quarter of 2018 to reduce mining from the Guanajuato Mine which, in turn, reduced the level of development activities at these areas.

Metres of exploration drilling	Q4 2018		Q4 2017		FY 2018		FY 2017
Guanajuato Mine		1,173		–		4,001		4,322
San Ignacio Mine		–		4,538		7,085		17,885
Total metres of exploration drilling		1,173		4,538		11,086		22,207

For the year ended December 31, 2018, the number of metres of exploration drilling was reduced due to drilling results at the Guanajuato Mine that were below expectations during the first nine months of 2018.

In the fourth quarter of 2018, the Company revised its exploration drill program to focus on the Guanajuato Mine with the aim of identifying and growing more higher-margin mineral resources.

Development and drilling costs for GMC are expensed.

Permitting

Tailings storage

In February 2016, the Mexican national water authority, Comisión Nacional del Agua ("CONAGUA"), required that the Company make formal applications for permits associated with the occupation and construction of the tailings storage facility ("TSF") at GMC. The Company filed its applications, and the authorities conducted an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. CONAGUA responded in February 2019 requesting additional technical information. The Company is currently reviewing the request and will provide its response in due course.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 14 

A recent geotechnical review and investigation performed by an independent third party determined that the current and projected embankments of the TSF meet recommended minimum factors of safety. The management of maintaining minimum factors of safety includes: (a) continuing with management of the coarse tailings and maintaining a minimum beach width of 100 metres, (b) maintaining monitoring and recording of instrumentation, including piezometers and inclinometers (to date records received from the pore pressure instrumentation show a stable trend over time with fluctuations associated with seasonal conditions), (c) maintaining a free board of at least two metres as per SEMANART requirements, (d) continuing the implementation of a formal inspection program that includes at least annual field inspections by a qualified geotechnical engineer to verify the conditions of the TSF based on the existing conditions and the results of the monitoring programs, and (e) maintaining an active decantation system with sufficient capacity to prevent overfilling of the effluent storage pond. GMC continues to retain an independent third party for annual review and inspection of the security of the TSF.

Additional water use permits

Since the February 2016 correspondence with CONAGUA, the Company has also determined, through its own undertakings, that additional CONAGUA permits may be needed in connection with water discharge and water use at the GMC TSF and at San Ignacio. The Company is assessing technical options and is confirming if additional water use permits are required. The Company believes that it will be able to address or mitigate the need for any necessary water discharge and use permits without any impact to its operations, but cannot provide complete assurance that there is no risk in this regard.

Amendment to Environmental Impact Statement related to expansion of existing tailings dam

In July 2017, the Company submitted to the Mexican environmental permitting authority, Secretaría del Medio Ambiente y Recursos Naturales ("SEMARNAT"), an amendment to the Environmental Impact Statement (“EIS”) requesting an expansion of the existing tailings dam, and subsequently provided further information to the SEMARNAT as requested. This is under review by the regulator, and if approved, will satisfy a requirement by CONAGUA for the processing of permits noted above.

The Company believes its current tailings footprint can be maintained and can support operations at GMC until at least 2021. Based on its meetings and other communication with the authorities, the Company believes that it will be able to obtain all the above noted permits, with no suspension of operations at GMC. However, the Company cannot assure that the tailings permits will be obtained or renewed on reasonable terms, or at all. Delays or a failure to obtain such required permits, or the issuance of permits on unfavourable terms or the expiry, revocation or failure by the Company to comply with the terms of any such permits, if obtained, could limit the ability of the Company to expand the tailings facility and could adversely affect the Company’s ability to continue operating at GMC. In either case, the Company’s results of operations could be adversely affected.

Wastewater discharge at San Ignacio

In June 2016, the Company filed a request for authorization to discharge wastewater in San Ignacio. The authority conducted a technical visit in November 2016. In April 2018, the authority requested additional information, which the Company promptly submitted. As of the date of this document, the resolution is pending. The Company is also preparing requests for similar permits for other areas of the Company's operations.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 15 

Topia Mine

	Q4 2018			Q4 2017			Change			% Change			2018			2017			Change			% Change
Tonnes mined		20,214			16,544			3,670			22	%		75,729			53,207			22,522			42	%1
Tonnes milled		18,883			17,500			1,383			8	%		73,605			53,745			19,860			37	%1
Production
Silver (ounces)		183,747			182,015			1,732			1	%		761,107			595,721			165,386			28	%1
Gold (ounces)		267			325			(58	)		-18	%		1,087			999			88			9	%1
Lead (tonnes)		474			441			33			7	%		1,958			1,291			667			52	%1
Zinc (tonnes)		661			551			110			20	%		2,361			1,757			604			34	%1
Silver equivalent ounces		390,701			341,129			49,572			15	%		1,548,343			1,086,663			461,680			42	%1
Sales
Payable silver ounces		181,643			175,009			6,634			4	%		707,206			533,006			174,200			33	%1
Ag eq oz sold		346,129			306,620			39,509			13	%		1,318,924			901,273			417,651			46	%1
Average ore grades
Silver (g/t)		326			352			(26	)		-7	%		344			376			(32	)		-9	%1
Gold (g/t)		0.83			0.95			(0.12	)		-13	%		0.79			0.89			(0.10	)		-11	%1
Lead (%)		2.69			2.68			0.01			0	%		2.82			2.58			0.24			9	%1
Zinc (%)		3.68			3.35			0.33			10	%		3.41			3.47			(0.06	)		-2	%1
Metal recoveries
Silver		92.9	%		91.8	%		1.1	%		1	%		93.4	%		91.7	%		1.7	%		2	%1
Gold		53.4	%		60.8	%		-7.4	%		-12	%		58.1	%		65.3	%		-7.2	%		-11	%1
Lead		93.3	%		94.1	%		-0.8	%		-1	%		94.3	%		93.1	%		1.2	%		1	%1
Zinc		95.0	%		93.8	%		1.2	%		1	%		94.1	%		94.2	%		-0.1	%		0	%1
Cost metrics
Cost per tonne milled2	$	179		$	194		$	(15	)		-8	%	$	180		$	190		$	(10	)		-5	%1
Cash cost2	$	7.54		$	10.35		$	(2.81	)		-27	%	$	6.90		$	9.53		$	(2.63	)		-28	%1
Cash cost per Ag eq oz2	$	10.80		$	14.82		$	(4.02	)		-27	%	$	10.82		$	13.79		$	(2.97	)		-22	%1
AISC2	$	9.13		$	11.70		$	(2.57	)		-22	%	$	8.50		$	14.98		$	(6.48	)		-43	%1
AISC per Ag eq oz2	$	11.64		$	15.59		$	(3.95	)		-25	%	$	11.67		$	17.01		$	(5.34	)		-31	%1

¹ Milling operations at Topia were suspended for the duration of the first quarter of 2017. Tonnes milled and metal produced were incidental and related to the testing of plant upgrades. As a result, the changes shown for cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC and AISC per Ag eq oz are not considered to be meaningful.

² Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 16 

Tonnes milled

Mill throughput for the year ended December 31, 2018 increased compared to the prior year mainly due to the temporary suspension of milling operations in the first quarter of 2017 to complete plant upgrades and a new tailings handling facility (the “Topia Project”), additional mill feed from mining areas with wider veins, as well as higher mill availability due to improved operational efficiencies.

Mill throughput in the fourth quarter of 2018 increased compared to the fourth quarter of 2017 mainly due to the additional mill feed from mining areas with wider veins, as well as higher mill availability due to improved operational efficiencies.

Production

Metal production for the year ended December 31, 2018 increased compared to the prior year mainly due to higher throughput, improvement in average lead grades and in silver and lead recoveries, and the revision in the Ag eq oz conversion ratios. These factors were partly offset by the lower silver, gold and zinc grades, and lower gold and zinc recoveries.

Metal production in the fourth quarter of 2018 increased compared to the fourth quarter of 2017 mainly due to higher throughput, improvement in average lead and zinc grades and in silver and zinc recoveries and the revision in the Ag eq oz conversion ratios. These factors were partly offset by the lower silver and gold grades, and lower gold and lead recoveries.

Cost per tonne milled

Cost per tonne milled for the year ended December 31, 2018 decreased compared to the prior year primarily due to higher mill throughput ($51 per tonne effect) and the weakening of the MXN to the USD ($3 per tonne effect). These factors were partly offset by higher production costs ($44 per tonne effect). The quantum of the factors explaining this variance, and other annual variances noted below, is largely a result of the aforementioned Topia Project, which resulted in the suspension of milling for the duration of the first quarter of 2017, thus the analysis may not be meaningful.

Cost per tonne milled in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to higher mill throughput ($14 per tonne effect) and the weakening of the MXN to the USD ($9 per tonne effect). These factors were partly offset by higher production costs ($8 per tonne effect).

Cash cost

Cash cost for the year ended December 31, 2018 decreased compared to the prior year primarily due to higher by-product credits ($2.88 per oz effect), higher payable silver ounces ($2.35 per oz effect), lower smelting and refining charges ($2.06 per oz effect), and a weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $0.31 per oz. These factors were partly offset by higher MXN production costs ($4.97 per oz effect).

Cash cost in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to lower MXN production costs ($0.24 per oz effect), higher payable silver ounces ($0.38 per oz effect), lower smelting and refining charges ($3.24 per oz effect), and a weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $0.95 per oz. These factors were partly offset by lower by-product credits ($2.00 per oz effect).

Cash cost per Ag eq oz

Cash cost per Ag eq oz for the year ended December 31, 2018 decreased compared to the prior year primarily due to higher Ag eq oz sold, lower smelting and refining charges, the Ag eq oz conversion ratio revisions, and weakening of the MXN to the USD. This was partly offset by an increase in MXN production costs.

Cash cost per Ag eq oz in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to higher Ag eq oz sold ($0.88 per Ag eq oz effect), lower smelting and refining charges ($1.70 per Ag eq oz effect), the Ag eq oz conversion ratio revisions ($0.81 per Ag eq oz effect), weakening of the MXN to the USD ($0.50 per Ag eq oz effect), and a decrease in MXN production costs ($0.13 per Ag eq oz effect).

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 17 

All-in sustaining cost

All-in sustaining cost for the year ended December 31, 2018 decreased compared to the prior year primarily due to the decrease in cash cost ($2.63 per oz effect) as described above, lower capital expenditures ($2.14 per oz effect), higher payable silver ounces ($1.34 per oz effect), and lower sustaining EE&D expenses ($0.37 per oz effect). All-in sustaining costs for 2017 reflected the full capital cost of the Topia Project as these were treated as sustaining capital expenditures.

All-in sustaining cost in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to the decrease in cash cost ($2.81 per oz effect) as described above, lower capital expenditures ($0.14 per oz effect), and higher payable silver ounces ($0.05 per oz effect). These factors were partly offset by higher sustaining EE&D expenses ($0.43 per oz effect).

AISC per Ag eq oz

AISC per Ag eq oz for the year ended December 31, 2018 decreased compared to the prior year primarily due to the decrease in cash cost per Ag eq oz ($2.97 per Ag eq oz effect) as described above, lower capital expenditures ($1.15 per Ag eq oz effect), the Ag eq oz conversion ratio revisions ($0.86 per Ag eq oz effect), lower sustaining EE&D expenses ($0.19 per Ag eq oz effect), and higher sales volumes ($0.17 per Ag eq oz effect).

AISC per Ag eq oz in the fourth quarter of 2018 decreased compared to the fourth quarter of 2017 primarily due to the decrease in cash cost per Ag eq oz ($4.02 per Ag eq oz effect) as described above, lower capital expenditures ($0.07 per Ag eq oz effect), the Ag eq oz conversion ratio revisions ($0.05 per Ag eq oz effect), and higher sales volumes ($0.04 per Ag eq oz effect). These factors were partly offset by higher sustaining EE&D expenses ($0.23 per Ag eq oz effect).

Development

Metres of development	Q4 2018		Q4 2017		FY 2018		FY 2017
Total metres of development		1,397		1,552		5,237		5,167

The metres of development for the year ended December 31, 2018 remained relatively unchanged compared to the prior year.

The decrease in metres of development in the fourth quarter compared to the same period in 2017 was mainly due to timing of development activities performed throughout the year.

The majority of the development was carried out at the Argentina, 15-22, San Miguel, El Rosario, La Prieta and Recompensa mines. The Company expenses all operational development at Topia to production costs.

Metres of exploration drilling	Q4 2018		Q4 2017		FY 2018		FY 2017
Total metres of exploration drilling		–		–		–		2,484

No exploration drilling has been undertaken in the period as Topia’s current remaining life of mine does not necessitate drilling.

Permitting

Tailings storage

In December 2017, the Company announced that SEMARNAT, the Mexican environmental authority, had granted all permits for the construction and operation of Phase II of the TSF.  Phase II is not a conventional tailings dam, but instead a dry stack operation using filter cake.  The deposition includes stacking and compaction of the material.  While detailed design and engineering of the under drainage of the lower bench of Phase II is underway, the Company is utilizing the upper bench of Phase II for the deposition of dry stack tailings and expects to continue to do so throughout 2019. 

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 18 

Phase I of the TSF was closed and contoured during 2018.  Based upon recommendations from an independent third party, an additional three instrumentation stations in the footprint of the TSF will be put in place in 2019 for the purposes of continuous monitoring.

The independent third party will continue to perform an annual review of Phase I, as well as conduct geotechnical reviews and provide design considerations for Phase II.

Reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF, have led to a broader review by the Mexican environmental compliance authority, the Procuraduría Federal de Protección al Ambiente ("PROFEPA") and by the Company of the permitting status for all of Topia operations, environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, the Topia Mine was accepted into a voluntary environmental audit program supported by PROFEPA which commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings and has until January 2020 to complete this. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates will be submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program further reviews will not lead to future suspensions of operations.

ADVANCED PROJECTS

Coricancha

The Company announced an updated Mineral Resource Estimate for Coricancha in December 2017. In May 2018, the Company released the results of a PEA which confirmed the potential for three million Ag eq oz of annual production. The Company is now advancing the project by completing a Bulk Sample Program, which commenced in July 2018. The Company expects to be able to make a decision by the end of March 2019 regarding the restart of Coricancha. Subsequent development and capital investments necessary to restart Coricancha are expected to occur within a year after successful completion of the Bulk Sample Program. The Company does not currently plan to complete a feasibility study in connection with any production decision due to (i) the existing processing plant facility, (ii) the low initial capital costs to re-establish underground workings, and (iii) the Company’s knowledge of the mine and resource base.

The National Instrument 43-101 Technical Report (“NI 43-101”) for the PEA was issued on July 13, 2018, and is available on the Company’s website, SEDAR and EDGAR.

Legacy tailings

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the Ministry of Energy and Mines (the “MEM”), the relevant regulatory body. In addition, as part of the purchase of Coricancha, the Company has an agreement with the previous owner for the reimbursement of costs to execute reclamation activities up to an agreed maximum. The Company is also seeking approval of a modification to a remediation plan from MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan.

Concurrently, the Company has successfully undertaken various legal measures to protect itself from any pending or new fines, penalties, regulatory action or charges from government authorities which may be initiated as a result of the change in timing of reclamation under the proposed plan. The Company believes this matter can be resolved favourably but cannot provide any assurance. Although the Company has all necessary permits to restart Coricancha, if this matter is not resolved favourably, it may impact the Company’s stated plans and objectives for Coricancha.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 19 

SELECTED ANNUAL INFORMATION

The following table sets out selected annual financial results which have been prepared in accordance with IFRS, except as noted:

(in 000’s, except per-share amounts)	2018			2017		2016
Revenue	$	59,434		$	63,746	$	61,881
Production costs		47,414			41,752		34,153
Mine operating earnings before non-cash items1		12,020			21,994		27,728
Amortization and share-based compensation		3,835			4,305		5,706
Mine operating earnings		8,185			17,689		22,022
EE&D		13,053			9,524		6,127
Finance and other income (expense)		1,846			2,413		(11,012	)
Net income (loss)		(10,063	)		1,290		(4,118	)
Basic and diluted loss per share		(0.06	)		0.01		(0.03	)
Adjusted EBITDA		(6,399	)		6,009		16,519
		December 31, 2018			December 31, 2017		December 31, 2016
Cash and short-term deposits		50,581			56,888		56,662
Total assets		112,776			121,880		89,441
Total non-current liabilities		25,000			24,895		5,600
Working capital		61,851			65,965		66,560

Total assets at December 31, 2018 decreased $9.1 million from December 31, 2017 mainly due to the $6.7 million cash outflows from operating activities before changes in non-cash working capital and a $3.6 million reduction in mineral properties, plant and equipment from amortization and depletion. These factors were partly offset by non-cash adjustments such as positive mark-to-market adjustments on the Company’s derivative contracts.

Non-current liabilities slightly increased by $0.1 million to $25.0 million at December 31, 2018 compared to $24.9 million at December 31, 2017.

Please refer to the Results of Operations section for a discussion of the changes relating to earnings.

¹ The Company has included the non-GAAP performance measures cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC excluding corporate expenditures, AISC, AISC per Ag eq oz, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 20 

SUMMARY OF SELECTED QUARTERLY INFORMATION

(000’s, except per-share amounts)	Q4 2018			Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017			Q2 2017		Q1 2017
Revenue	$	13,647		$	11,691		$	17,077		$	17,019		$	17,384		$	18,260		$	15,731	$	12,371
Production costs		11,630			11,024			12,967			11,794			12,422			12,092			10,313		6,926
Mine operating earnings before non-cash items1		2,017			667			4,110			5,225			4,962			6,168			5,418		5,445
Amortization and share-based compensation		811			610			1,207			1,206			1,207			1,362			953		783
Mine operating earnings		1,206			57			2,903			4,019			3,755			4,806			4,465		4,662
EE&D		3,768			3,341			2,617			3,326			2,568			2,652			2,348		1,955
Finance and other income (expense)		757			1,112			(912	)		889			(459	)		50			827		1,996
Net income (loss) for the period		(3,559	)		(3,642	)		(2,765	)		(97	)		(1,918	)		(666	)		833		3,040
Basic and diluted earnings (loss) per share		(0.02	)		(0.02	)		(0.02	)		(0.00	)		(0.01	)		(0.00	)		0.00		0.02
Adjusted EBITDA1		(3,271	)		(3,679	)		137			415			904			1,482			1,489		2,134

	Q4 2018		Q3 2018		Q2 2018		Q1 2018		Q4 2017		Q3 2017		Q2 2017		Q1 2017
Tonnes mined2		92,158		92,997		97,094		94,494		97,407		87,974		92,578		92,058
Tonnes milled		89,270		92,920		95,169		96,869		98,396		94,080		98,576		82,656
Production
Silver (ounces)		438,152		448,840		479,809		491,063		514,218		532,803		569,229		366,435
Gold (ounces)		4,101		4,737		5,492		5,831		5,931		5,848		5,543		5,178
Lead (tonnes)		474		572		480		433		441		442		405		3
Zinc (tonnes)		661		639		528		533		551		562		638		6
Ag eq oz		951,784		1,023,128		1,081,784		1,114,270		1,065,773		1,080,483		1,102,290		730,185
Sales
Payable silver ounces		455,146		402,150		479,942		476,325		516,078		552,218		524,411		344,995
Ag eq oz sold		944,563		847,317		1,090,684		1,045,076		1,038,023		1,082,451		992,058		680,984
Cost metrics
Cost per tonne milled1	$	116	$	128	$	121	$	121	$	116	$	116	$	103	$	88
Cash cost1	$	10.37	$	12.79	$	7.84	$	5.39	$	7.25	$	5.82	$	5.67	$	3.54
Cash cost per Ag eq oz1	$	12.88	$	13.56	$	12.43	$	11.85	$	13.18	$	12.37	$	11.47	$	10.99
AISC excluding corporate G&A expenditures1	$	12.37	$	16.09	$	11.22	$	8.75	$	10.83	$	8.83	$	10.85	$	13.66
AISC1	$	16.06	$	19.74	$	15.04	$	12.33	$	14.72	$	13.75	$	14.93	$	19.55
AISC per Ag eq oz1	$	15.62	$	16.86	$	15.60	$	15.01	$	16.89	$	16.42	$	16.37	$	19.10

The following paragraphs describe the trends in results over the quarters presented and the factors that have contributed to these trends.

¹ The Company has included the non-GAAP performance measures cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC excluding corporate expenditures, AISC, AISC per Ag eq oz, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

² Excludes purchased ore.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 21 

Trends in revenue over the last eight quarters

Revenue varies based on the quantity of metal sold, metal prices and terms of sales agreements. The climate in Mexico allows mining and exploration activities to be conducted throughout the year.

Metal production for the last eight quarters has consistently been in approximately the 0.9 – 1.1 million Ag eq oz range with the exception of the first quarter of 2017, which was impacted by the planned suspension of processing at Topia to allow for upgrades to the processing facility. Topia resumed production in the second quarter of 2017. Outside of this factor, the trend in revenue has mainly been impacted by the fluctuation in prices for silver and gold.

Trends in net income over the last eight quarters

The trends in production costs are due primarily to the costs of mining operations. Mining costs have increased in more recent quarters as a result of higher variability in mineral resources at GMC. Further, there were rate increases in both 2017 and 2018 for mining contractors. Plant costs at Topia increased slightly due to the operation of the new dry tails filter press. On-site administrative costs were fairly steady, with additional costs being incurred for security and safety.

Mine operating earnings are a function of revenue, production costs, depreciation at the operating mines, and share based compensation of operations personnel.

To mitigate its foreign exchange risk, the Company from time to time enters into forward contracts for the purchase of Mexican pesos. Such contracts can result in foreign exchange gains and losses, as these contracts are marked to market every reporting period. The first, third and fourth quarters of 2018 and the first, second and third quarters of 2017 reflected significant foreign exchange gains, while the second quarter of 2018 and the fourth quarter of 2017 reflected significant foreign exchange losses, mainly due to these MXN forward contracts. Foreign exchange gains or losses are included in finance and other income. Foreign exchange gains and losses also arise from the translation of foreign currency denominated transactions and balances into the functional currencies of the Company and its subsidiaries.

Since the second quarter of 2017, the Company’s exploration, evaluation and development expenditures increased due to the addition of Coricancha care and maintenance and project expenditures after its acquisition in June 2017. The Company also expenses exploration and drilling costs at its operating mines.

G&A expenditures were fairly consistent over the last eight quarters with the exception of non-recurring G&A charges related to management changes in the third quarter of 2017.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 22 

RESULTS OF OPERATIONS

Year ended December 31, 2018

Revenue

	FY 2018									FY 2017									%
	GMC			Topia			Total			GMC			Topia			Total			Change
Sales quantities
Payable silver (ounces)		1,106,357			707,206			1,813,563			1,404,696			533,006			1,937,702			-6	%
Gold (ounces)		18,780			780			19,560			21,251			587			21,838			-10	%
Lead (tonnes)		–			1,805			1,805			-			1,135			1,135			59	%
Zinc (tonnes)		–			1,643			1,643			-			1,257			1,257			31	%
Silver equivalent ounces		2,608,715			1,318,924			3,927,639			2,892,243			901,273			3,793,516			4	%
Revenue (000’s)
Silver revenue	$	17,271		$	10,944		$	28,215		$	24,129		$	9,016		$	33,145			-15	%
Gold revenue		24,020			985			25,005			27,432			755			28,187			-11	%
Lead revenue		-			3,904			3,904			-			2,741			2,741			42	%
Zinc revenue		-			4,497			4,497			-			3,853			3,853			17	%
Smelting and refining charges		(1,656	)		(531	)		(2,187	)		(2,195	)		(1,985	)		(4,180	)		-48	%
Total revenue	$	39,635		$	19,799		$	59,434		$	49,366		$	14,380		$	63,746			-7	%
Average realized metal prices and FX rates
Silver (per ounce)							$	15.56								$	17.11			-9	%
Gold (per ounce)							$	1,278								$	1,291			-1	%
Lead (per pound)							$	0.98								$	1.10			-11	%
Zinc (per pound)							$	1.24								$	1.39			-11	%
CAD/USD								1.297									1.294			0	%
MXN/USD								19.245									18.926			2	%

During the year ended December 31, 2018, the Company earned revenues of $59.4 million, compared to $63.7 million in 2017. The decrease in revenue relative to the prior year was primarily attributable to a decrease in realized metal prices for all metals ($4.0 million effect), and a decrease in metal sales volumes ($2.3 million effect). These were partly offset by lower smelting and refining charges, which are netted against revenue, due to more favourable revenue contract terms with customers for 2018 ($2.0 million effect).

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 23 

(000’s)		FY 2018			FY 2017			Change		% Change
Revenue	$	59,434		$	63,746		$	(4,312	)	-7	%
Production costs		47,414			41,752			5,662		14	%
Mine operating earnings before non-cash items 1		12,020			21,994			(9,974	)	-45	%
Amortization and depletion		3,462			3,878			(416	)	-11	%
Share-based compensation		373			427			(54	)	-13	%
Mine operating earnings		8,185			17,689			(9,504	)	-54	%
Mine operating earnings before non-cash items (% of revenue)		20	%		35	%
Mine operating earnings (% of revenue)		14	%		28	%
G&A expenses		6,389			7,822			(1,433	)	-18	%
EE&D expenses		13,053			9,524			3,529		37	%
Finance and other income (expense)		1,846			2,413			(567	)	-23	%
Tax expense		652			1,466			(814	)	-56	%
Net income (loss)	$	(10,063	)	$	1,290		$	(11,353	)	-880	%
Adjusted EBITDA1	$	(6,399	)	$	6,009		$	(12,408	)	-206	%

Production costs

Production costs for the year ended December 31, 2018 were $47.4 million, an increase of 14% over the same period in 2017. This was predominantly attributable to higher MXN denominated unit mining costs as a result of mining narrower veins at the GMC (which requires more waste material to be mined), along with minor rate increases for mining contractors (together a $7.8 million effect). This was mainly the case in the third quarter and the early part of the fourth quarter of 2018, when the Company undertook previously announced restructuring initiatives to reduce costs and began to realize unit cost reductions in the fourth quarter of 2018 relative to the third quarter of 2018. These factors were partly offset by the decrease in sales volumes primarily from silver and gold (together a $1.4 million effect), and the weakening of the MXN relative to the USD, which reduced production costs in USD, terms as these are predominantly incurred in MXN ($0.7 million effect).

Mine operating earnings

Mine operating earnings before non-cash items decreased by $10.0 million as revenue decreased by $4.3 million due to a decline in realized metal prices as compared to 2017, and production costs increased by $5.7 million due to increased waste to ore ratios.

Amortization and depletion decreased mainly due to the increase in the estimated useful life of GMC based on the mineral resource estimate update announced earlier in the year, partly offset by the decrease in useful life of Topia based on the accelerated production rate anticipated in 2019 and future years.

General and administrative expenses

G&A expenses decreased 18% compared to the same period in 2017 due to non-recurring expenses incurred in the comparative period related to strategic changes and initiatives to position the Company for future growth and development. These included expenses related to CEO succession, other management changes, and implementation of long-term incentive programs.

¹ The Company has included non-GAAP performance measures such as mine operating earnings before non-cash items, throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 24 

Exploration, evaluation, and development expenses

EE&D expenditures increased $3.5 million or 37% compared to the same period in 2017. As Coricancha was acquired on June 30, 2017, there were only care and maintenance expenditures for half a year of $2.9 million in 2017, compared to a full year’s expenditures of $7.1 million in 2018 comprising of care and maintenance expenditures and costs associated with the Bulk Sample Program. The Company will continue to expense project costs and ongoing care and maintenance associated with Coricancha until such time a formal decision is made to restart the mine. EE&D expenditures for the year ended December 31, 2018 also reflected $1.1 million of higher corporate development costs for the evaluation and negotiation of acquisition opportunities mainly related to the agreement to acquire Beadell. These factors were partly offset by a $1.4 million decrease in exploration expenses at Topia and San Ignacio, a $0.2 million decrease in changes in reclamation estimates recorded in EE&D, and a $0.1 million decrease in exploration expenses at Santa Rosa.

The cost of undertaking the closure plan (and any approved amendments) for the Coricancha legacy tailings are subject to an agreement with the prior owner of Coricancha to reimburse the Company for these costs (refer to discussion on ADVANCED PROJECTS / Legacy Tailings in this MD&A for further information). The Company has previously received full reimbursement of costs incurred. Furthermore, all permits are in place to restart Coricancha and the status of a decision from the MEM to modify the closure plan does not affect the permitting of the mine.

Finance and other income (expense)

Finance and other income (expense) primarily reflects interest income or expense and foreign exchange gains and losses. These were $1.8 million compared to $2.4 million in the same period in 2017. During the year ended December 31, 2018, the Company recorded a foreign exchange gain of $1.1 million, mainly due to the positive mark-to-market adjustment on the Company’s foreign exchange forward contracts outstanding as at December 31, 2018, and realized gains on the settlement of forward contracts during the year. This is compared to a foreign exchange gain of $2.3 million in the same period in 2017, which was also due to the realized gains on the settlement of forward contracts. The decrease was partly offset by a $0.7 million increase in interest income as a result of higher interest rates and higher cash balances.

Tax expense

Income tax expense decreased by $0.8 million, compared to the same period in 2017, which was predominantly attributable to lower Mexican special mining duties, partly offset by higher Mexican withholding tax liabilities.

Net income (loss)

The increase in net loss was primarily due to a $9.5 million decrease in mine operating earnings, a $3.5 million increase in EE&D expenses, and a $0.6 million net decrease in finance and other income. These factors were partly offset by a $1.4 million decrease in G&A expenses and a $0.8 million decrease in income tax expense.

Adjusted EBITDA

The decrease largely reflects a $10.0 million decrease in mine operating earnings before non-cash items, a $3.8 million increase in EE&D expenses before non-cash items (such as share based compensation and changes in estimate of reclamation provisions), and a $0.1 million decrease in other income. These factors were partly offset by a $1.5 million decrease in G&A expenses before non-cash items.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 25 

Three months ended December 31, 2018

Revenue

	Q4 2018									Q4 2017									%
	GMC			Topia			Total			GMC			Topia			Total			Change
Sales quantities
Silver (ounces)		273,503			181,643			455,146			341,069			175,009			516,078			-12	%
Gold (ounces)		4,062			200			4,262			5,576			207			5,783			-26	%
Lead (tonnes)		–			485			485			-			421			421			15	%
Zinc (tonnes)		–			446			446			-			438			438			2	%
Silver equivalent ounces		598,434			346,129			944,563			731,403			306,620			1,038,023			-9	%
Revenue (000’s)
Silver revenue	$	4,044		$	2,692		$	6,736		$	5,709		$	2,992		$	8,701			-23	%
Gold revenue		5,077			252			5,329			7,205			269			7,474			-29	%
Lead revenue		-			969			969			-			1,035			1,035			-6	%
Zinc revenue		-			1,149			1,149			-			1,429			1,429			-20	%
Smelting and refining charges		(402	)		(134	)		(536	)		(532	)		(723	)		(1,255	)		-57	%
Total revenue	$	8,719		$	4,928		$	13,647		$	12,382		$	5,002		$	17,384			-21	%
Average realized metal prices and FX rates
Silver (per ounce)							$	14.80								$	16.86			-12	%
Gold (per ounce)								1,250									1,292			-3	%
Lead (per pound)								0.91									1.11			-18	%
Zinc (per pound)								1.17									1.48			-21	%
USD/CAD								1.322									1.251			6	%
USD/MXN								19.855									18.953			5	%

Revenues were $13.6 million in the fourth quarter of 2018, compared to $11.7 million in the third quarter of 2018 and $17.4 million in the fourth quarter of 2017. The increase from the previous quarter was primarily due to higher sales volumes ($1.4 million effect) and higher metal prices ($0.6 million effect).

Compared to the fourth quarter of 2017, revenue decreased by $3.7 million or 21%, due to lower metal sales volume ($2.8 million effect) and a decrease in metal prices ($1.6 million effect) as detailed in the table above. These were partly offset by the lower smelting and refining charges, which are netted against revenue, due to more favourable revenue contract terms with customers for 2018 ($0.7 million effect).

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 26 

(000’s)		Q4 2018			Q4 2017			Change		%Change
Revenue	$	13,647		$	17,384		$	(3,737	)	-21	%
Production costs		11,630			12,422			(792	)	-6	%
Mine operating earnings before non-cash items1	$	2,017		$	4,962		$	(2,945	)	-59	%
Amortization and depletion		803			1,096			(293	)	-27	%
Share-based compensation		8			111			(103	)	-93	%
Mine operating earnings		1,206			3,755			(2,549	)	-68	%
Mine operating earnings before non-cash items (% of revenue)		15	%		29	%
Mine operating earnings (% of revenue)		9	%		22	%
G&A expenses	$	1,653		$	1,802		$	(149	)	-8	%
EE&D expenses		3,769			2,568			1,201		47	%
Finance and other income (expense)		757			(459	)		1,216		-265	%
Tax expense		100			844			(744	)	-88	%
Net income (loss)	$	(3,559	)	$	(1,918	)	$	(1,641	)	-86	%
Adjusted EBITDA1	$	(3,271	)	$	904		$	(4,175	)	-462	%

Production costs

Production costs for the fourth quarter of 2018 decreased by $0.8 million compared to the fourth quarter of 2017. The decrease was attributable to lower metal sales volumes ($1.9 million effect) and the weakening of the MXN to the USD which had the impact of decreasing production costs in USD terms ($0.5 million effect). These were partly offset by the higher MXN denominated mining costs as a result of mining narrower veins at the GMC (which requires more waste material to be mined), along with minor rate increases for mining contractors (together a $1.6 million effect).

Mine operating earnings

Mine operating earnings before non-cash items decreased by $2.9 million relative to the fourth quarter of 2017 as revenue decreased by $3.7 million, which was partly offset by the $0.8 million decrease in production costs.

Relative to the third quarter of 2018, mine operating earnings before non-cash items increased by $1.4 million mainly due to a $2.0 million increase in revenue, which was partly offset by a $0.6 million increase in production costs.

General and administrative expenses

G&A expenses for the fourth quarter of 2018 decreased by $0.1 million compared to the comparative period in 2017 mainly due to timing of expenditures.

Exploration, evaluation and development expenses

EE&D expenses increased by $1.2 million in the fourth quarter of 2018 compared to the same period in 2017 mainly due to a $1.6 million increase in spending at Coricancha for the Bulk Sample Program and a $0.3 million increase in corporate development costs for the evaluation and negotiation of acquisition opportunities mainly related to the agreement to acquire Beadell. These were partially offset by a $0.4 million reduction in exploration drilling at GMC and a $0.2 million decrease in changes in reclamation estimates recorded in EE&D.

¹ The Company has included the non-GAAP performance measures, cost of sales before non-cash items and mine operating earnings before non-cash items, throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 27 

Finance and other income (expense)

Finance and other income increased by $1.2 million in the fourth quarter compared to the same period in 2017. During the quarter ended December 31, 2018, the Company recorded a foreign exchange gain of $0.5 million mainly due to the positive mark-to-market adjustment on the Company’s foreign exchange forward contracts outstanding as at December 31, 2018. This is compared to a foreign exchange loss of $0.3 million recorded in the fourth quarter of 2017 mainly as a result of a decline in the USD value of foreign currencies held by the Company. The Company also earned $0.2 million additional interest income as a result of higher interest rates and higher cash balances. Accretion expense was also lower by $0.1 million.

Tax expense

Income tax expense decreased by $0.7 million in the fourth quarter, compared to the same period in 2017, which was predominantly attributable to lower Mexican special mining duties, partly offset by higher Mexican withholding tax liabilities.

Net income (loss)

The increase in net loss was primarily due to a $2.5 million decrease in mine operating earnings and a $1.2 million increase in EE&D expenses. These factors were partly offset by a $1.2 million net increase in finance and other income, a $0.1 million decrease in G&A expenses and a $0.7 million decrease in income tax expense.

Adjusted EBITDA

Adjusted EBITDA decreased by $4.2 million in the fourth quarter of 2018, compared to the same period in 2017. The decrease reflected a $2.9 million decline in mine operating earnings before non-cash items, and a $1.4 million increase in EE&D expenses before non-cash items (such as share based compensation and changes in estimate of reclamation provisions). These factors were partly offset by a $0.1 million decrease in G&A cash expenses and a $0.1 million increase in other income.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 28 

OUTLOOK

Great Panther expects to close the Acquisition of Beadell in early March. On January 29, 2019, Beadell issued 2019 production guidance of 145,000 to 155,000 gold ounces at an all-in sustaining cost of $1,000 to $1,100 per ounce. The Company will review Beadell’s guidance and expects to provide an update with the Company’s reporting for the first quarter of 2019. The Company’s focus for Beadell in 2019 will be integration, realization of cost synergies by rationalizing Beadell’s current Australian head office, and identifying and implementing cost-saving measures to optimize profitability of Tucano. Beadell’s operating team in Brazil will remain in place and there has already been a significant degree of coordination and integration with Great Panther’s head office through regularly scheduled meetings, regular communication, site visits and sharing of information and data. Great Panther also plans to immediately work with Beadell’s existing exploration team to develop a program aimed at capitalizing on Tucano’s significant exploration potential.

Great Panther will continue to evaluate its head office resources and needed skills and competencies to facilitate the integration of Tucano and ongoing oversight and management.  In this regard, the Company has recently added senior technical and senior administrative positions, both of which have been filled by Brazilian-Canadians who have professional qualifications and experience in the mining sector in Brazil.  The Company will also continue to assess its needs at the executive level.

As previously announced, the Company took steps in the second half of 2018 to realign operations at GMC to reduce unit costs and maximize mine operating-cash flow, with a modest reduction in production. The Company has undertaken a multi-mine optimization strategy under which the entire production for GMC during 2019 will be sourced from the lower cost San Ignacio Mine, enabling a focused exploration program for the Guanajuato Mine aimed at growing higher margin resources. In addition, a planned increase in the processing capacity from the Topia Mine in 2019 is expected to increase Topia’s production by approximately 25% compared to 2018.

For 2019, the Company expects production to be in the range of 3.7 to 4.0 million Ag eq oz. Cash cost per silver ounce guidance for 2019 is $5.00 to $6.50 and the AISC guidance range is $13.00 to $15.00.

Production and cash cost guidance	FY 2019 Guidance	FY 2018 Actual
Total silver equivalent ounces1	3,700,000  -  4,000,000		4,170,966
Cash cost2	$5.00  –  $6.50	$	8.93
AISC, excluding corporate G&A expenditures2	$10.00  –  $12.00	$	11.94
AISC2	$13.00  –  $15.00	$	15.63

It is cautioned that cash cost and AISC are very sensitive to the Mexican peso foreign exchange rate and metal prices through the computation of by-product credits.

The following provides the Company’s guidance for sustaining capital expenditures and EE&D expenses for the year ended December 31, 2019:

Capex and EE&D expense guidance	FY 2019 Guidance	FY 2018 Actual
Capital expenditures, excluding capital expenditures associated with Coricancha and Topia processing plant upgrades	$1.5 – $1.9 million	$1.9 million
EE&D – operating mines (excluding Coricancha)	$4.2 – $5.2 million	$3.5 million

In Peru, the Company will also continue to advance the development of the Coricancha Mine with the objective of setting a platform for production growth by 2020. While still in the evaluation stage, based upon historic production records, Coricancha has the potential to add 3 million Ag eq oz of annual production.

¹For 2019 guidance and FY 2018 Actual, Ag eq oz are calculated using a 80:1 Ag:Au ratio and ratios of 1:0.0636 and 1:0.0818 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations.

² Cash cost, AISC excluding corporate G&A expenditures and AISC are non-GAAP measures. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 29 

The BSP at Coricancha continues to advance on schedule following the announcement in May 2018 of the positive PEA. The Company expects to be able to make a decision by end of March 2019 on whether to commence the restart of Coricancha.

Based on current cash flow forecasts, the Company expects its cash and net working capital will be sufficient to fund the closing and integration of the acquisition of Beadell, fund Beadell’s capital and debt service needs, and fund the restart of Coricancha should the Company make a positive decision to restart the mine.

METAL PRICE SENSITIVITIES

The Company’s financial results are very sensitive to the price of silver and gold, and to a lesser extent, lead and zinc. The following table summarizes the effect of changes in the silver price on the Company’s 2019 revenue outlook, based on an assumed production of 3.7 million silver equivalent ounces, which represents the bottom of the Company’s production guidance range for 2019:

Revenue Sensitivity to Change in Silver Price

Silver price per ounce		$	11.50	$	13.50	$	15.50	$	17.50	$	19.50
GMC revenue	000’s	$	23,285	$	24,642	$	25,998	$	27,355	$	28,712
Topia revenue	000’s		19,828		21,775		23,722		25,669		27,616
Total revenue	000’s	$	43,113	$	46,417	$	49,720	$	53,024	$	56,328

Assumes gold price of $1,275/oz, zinc price of $1.15/lb, lead price of $1.00/lb, and production of 3.7 million Ag eq oz.

Revenue Sensitivity to Change in Gold Price

Gold price per ounce		$	1,075	$	1,175	$	1,275	$	1,375	$	1,475
GMC revenue	000’s	$	23,571	$	24,870	$	26,168	$	27,466	$	28,765
Topia revenue	000’s		23,721		23,843		23,965		24,087		24,209
Total revenue	000’s	$	47,292	$	48,713	$	50,133	$	51,553	$	52,974

Assumes silver price of $15.75/oz, zinc price of $1.15/lb, lead price of $1.00/lb, and production of 3.7 million Ag eq oz.

The Company’s cash cost is affected by changes in metal prices of the by-products of silver, specifically gold at GMC and lead, zinc and gold at Topia. The following tables summarize the effect of changes in prices of gold, lead and zinc on the Company’s 2019 estimated cash cost based on an assumed production of 3.7 million Ag eq oz and assumed cash cost of $5.75, which represent the bottom of the Company’s production guidance range and the middle of the cash cost guidance range for 2019, respectively.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 30 

Cash Cost: Sensitivity to Change in Gold Price

Gold price per ounce	$	1,075	$	1,175	$	1,275	$	1,375	$	1,475
Cash cost	$	7.66	$	6.80	$	5.94	$	5.08	$	4.22

Assumes silver price of $15.75/oz, zinc price of $1.15/lb, lead price of $1.00/lb, and production of 3.7 million Ag eq oz.

Cash Cost: Sensitivity to Change in Zinc Price

Zinc price per pound	$	0.95	$	1.05	$	1.15	$	1.25	$	1.35
Cash cost	$	6.44	$	6.19	$	5.94	$	5.69	$	5.44

Assumes gold price of $1,275/oz, silver price of $15.75/oz, lead price of $1.00/lb, and production of 3.7 million Ag eq oz.

Cash Cost: Sensitivity to Change in Lead Price

Lead price per pound	$	0.80	$	0.90	$	1.00	$	1.10	$	1.20
Cash cost	$	6.38	$	6.13	$	5.94	$	5.68	$	5.42

Assumes gold price of $1,275/oz, zinc price of $1.15/lb, silver price of $15.75/oz, and production of 3.7 million Ag eq oz.

LIQUIDITY AND CAPITAL RESOURCES

Net working capital including cash and cash equivalents

(000’s)		December 31, 2018		December 31, 2017		Change
Cash and cash equivalents	$	24,524	$	36,797	$	(12,273	)
Short-term deposits	$	26,057	$	20,091	$	5,966
Net working capital	$	61,851	$	65,965	$	(4,114	)

Cash and short-term deposits decreased by $6.3 million during 2018 primarily due to a $5.0 million loan advanced to Beadell in connection with the acquisition of the company, and $2.1 million in additions to mineral property, plant and equipment. These factors were partly offset by $0.3 million of cash generated by operating activities, $0.3 million in proceeds from the exercise of stock options and $0.1 million foreign exchange adjustment on cash balances.

Net working capital was $61.9 million as at December 31, 2018, a decrease of $4.1 million from December 31, 2017. The decrease was predominantly due to cash flow used in operating activities (before changes in non-cash working capital) of $6.7 million and additions to mineral property, plant and equipment of $2.1 million. These factors were partly offset by the reclassification of $1.9 million of Coricancha reimbursement rights on the legacy tailings reclamation work from long-term to current based on the estimated timing and amount of reclamation expenditures at year-end, a $1.2 million Peruvian value added tax refund, foreign exchange gains of $1.1 million, $0.3 million of stock option proceeds, and $0.2 million of other income.

Operating activities

For the year ended December 31, 2018, cash flows provided by operating activities amounted to $0.3 million, compared to $5.7 million in 2017. The $5.4 million decrease was primarily due to a reduction in mine operating earnings before non-cash items of $10.0 million (mainly due to lower realized metal prices and higher production costs), an increase in EE&D cash expenses of $3.8 million and a reduction in net realized foreign exchange gains and losses of $2.0 million. These factors were offset by a decrease in G&A cash expenses of $1.5 million, a net increase in non-cash net working capital items of $7.7 million, a decrease in income taxes paid of $0.5 million, an increase in net interest received of $0.5 million and an increase in other income of $0.2 million.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 31 

For the quarter ended December 31, 2018, cash outflows from operating activities amounted to $1.9 million, compared to cash flows of $4.0 million for the fourth quarter of 2017. The $5.9 million decrease was due primarily to the decrease in mine operating earnings before non-cash items of $2.9 million, a reduction in non-cash net working capital items of $1.5 million, an increase in EE&D cash expenses of $1.4 million and a reduction in net realized foreign exchange gains and losses of $0.3 million. These factors were partly offset by the decrease in G&A cash expenses of $0.1 million, and an increase in other income of $0.1 million.

Investing activities

The Company invests in short term deposits and similar instruments as part of its routine cash management procedures. As these instruments are acquired or mature at various times and periods, cash flows provided by or used in investing activities vary significantly from quarter to quarter.

Excluding movements in short term deposits, for the year ended December 31, 2018, the Company had net cash outflows from investing activities of $7.1 million, compared to $6.2 million during the year ended December 31, 2017. During the year ended December 31, 2018, the Company advanced $5.0 million to Beadell and invested $2.1 million in mineral properties, plant and equipment. During the year ended December 31, 2017, the Company invested $5.3 million in mineral properties, plant and equipment, and put in place a $1.2 million environmental bond at Coricancha. These were partly offset by proceeds from disposal of plant and equipment of $0.2 million and cash received upon the acquisition of Coricancha of $0.1 million.

Similarly, for the quarter ended December 31, 2018, the Company had net cash outflows from investing activities of $5.6 million, compared to $2.5 million during the comparative period in 2017. The Company advanced $5.0 million to Beadell and invested $0.6 million in mineral properties, plant and equipment, respectively. For the quarter ended December 31, 2017, the Company invested $1.3 million in mineral properties, plant and equipment and put in place a $1.2 million environmental bond at Coricancha.

Financing activities

For the year ended December 31, 2018, the Company generated $0.3 million of cash from the exercise of stock options, compared to $1.2 million during the comparative period in 2017.

There were minimal stock option exercises for both the quarter ended December 31, 2018 and December 31, 2017.

Trends in liquidity and capital resources

The Company anticipates that cash flows generated from mining activities, along with its current cash and other net working capital, will be sufficient to fund the Company’s operations without requiring any additional capital to meet its planned initiatives (including plans for Coricancha and the closing and integration of the Beadell acquisition, which is expected to close in the first week of March 2019), and to fund investment and exploration, evaluation, and development activities for the foreseeable future. However, this is highly dependent on metal prices and the ability of the Company to maintain cost and grade controls at its operations, and is subject to the Company’s plans and strategy.

Beadell has scheduled debt repayments of approximately $17 million in 2019, of which approximately $9.3 million is due in the first half of 2019 (after giving effect to the MACA Agreement). In addition, after closing the acquisition of Beadell, Beadell (as a subsidiary of Great Panther) will be required to make an offer to purchase its outstanding convertible debentures with a total principal value of $10 million. (Refer to the SIGNIFICANT EVENTS section for more information). The Company’s plans include seeking term debt facilities to refinance Beadell’s secured debt facilities and possibly its convertible debentures in the event the holders accept the offer to purchase.

The Company has stated its objective to grow by acquisition, and accordingly, will continue to evaluate opportunities to execute and complete additional acquisitions, and these may require additional capital.

The Company’s operating cash flows are very sensitive to the prices of silver and gold, and foreign exchange rate fluctuations, as well as fluctuations in ore grades. Consequently, any cash flow outlook the Company provides may vary significantly. Spending and capital investment plans may also be adjusted in response to changes in operating cash flow expectations. An increase in average silver and gold prices from current levels may result in an increase in planned expenditures and, conversely, weaker average silver prices and gold prices could result in a reduction of planned expenditures.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 32 

As of the date of this MD&A, the Company has no debt, other than trade and other payables.

The Company does not enter into any long-term hedging arrangements in respect of its metal production.

Contractual Obligations

(000’s)		Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	1,383	$	339	$	638	$	406	$	–
Drilling services		13		13		–		–		–
Equipment purchases		362		362		–		–		–
Reclamation and remediation (undiscounted)		38,831		4,633		11,824		6,556		15,818
Total	$	40,589	$	5,347	$	12,462	$	6,962	$	15,818

Under the terms of the acquisition agreement for Coricancha (the “Acquisition Agreement”), Nyrstar N.V. (the “Vendor”) agreed to indemnify the Company for up to $20.0 million on account of certain reclamation and remediation expenses incurred in connection with Coricancha, including certain reclamation and remediation obligations noted in the table above. As at December 31, 2018, the Company’s consolidated financial statements reflected a reimbursement right in the amount of $8.9 million due from the Vendor in respect of these reclamation and remediation obligations. Since closing the acquisition on June 30, 2017, the Company has received $1.8 million in reimbursements from the Vendor in respect of reclamation and remediation costs incurred by the Company at Coricancha.

Under the Acquisition Agreement, the Vendor also agreed to indemnify the Company for up to $4.0 million in respect of legal claims and fines and sanctions that the Company may be required to pay in connection with Coricancha. As at December 31, 2018, the Company had recorded a reimbursement right in the amount of $1.9 million recoverable from the Vendor in respect of certain fines and sanctions, and legal claims.

Off-Balance sheet arrangements

Other than as disclosed, the Company had no material off-balance sheet arrangements as at the date of this MD&A, that have, or are reasonably likely to have, a current or future effect on the financial performance or financial condition of the Company.

TRANSACTIONS WITH RELATED PARTIES

The Company had no material transactions with related parties, other than compensation for key management personnel. Refer to note 22 of the accompanying annual audited consolidated financial statements for the year ended December 31, 2018.

CRITICAL ACCOUNTING ESTIMATES

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are based on historical experience and other factors considered to be reasonable, and are reviewed on an ongoing basis. Actual results may differ from these estimates.

Refer to note 4 of the 2018 annual audited consolidated financial statements for a detailed discussion of the areas in which critical accounting estimates are made and where actual results may differ from the estimates under different assumptions and conditions and may materially affect financial results of its statement of financial position reported in future periods.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 33 

Significant new judgments during the year ended December 31, 2018, are those associated with (i) the determination of the point in time in which the Company transfers control of its metal concentrates to the customer, which affects both the amount and the timing of revenue recognized by the Company, and (ii) the possible outcome of the modification of the Coricancha legacy tailings remediation plan, which affects the reclamation and remediation costs for Coricancha.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

CHANGES IN ACCOUNTING POLICIES

The Company adopted two new accounting standards effective January 1, 2018: “IFRS 15 – Revenue from Contracts with Customers" and “IFRS 9 – Financial Instruments”, refer to note 3(q) of the 2018 annual audited consolidated financial statements. Refer to note 3(r) of the 2018 annual audited consolidated financial statements for a discussion of the accounting standards anticipated to be effective January 1, 2019 or later.

NEW ACCOUNTING STANDARDS

A new accounting standard applicable to the Company, IFRS 16 Leases, has an effective date of January 1, 2019. The new standard specifies how to recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a very low value.

Refer to note 3(r) of the 2018 annual audited consolidated financial statements for management’s transition plan and initial quantitative estimates of the effects on the consolidated financial statements of adopting this standard. In coming up with the estimates, the Company’s staff has completed training, and management has developed an implementation plan and built a database of existing agreements which may contain leases as defined in the new standard and completed the review and analysis of these contracts in accordance with the new standard.

FINANCIAL INSTRUMENTS

(000’s)		Fair value1	Basis of measurement	Associated risks
Cash and cash equivalents	$	24,524	Amortized cost	Credit, currency, interest rate
Short-term deposits	$	26,057	Amortized cost	Credit, interest rate
Marketable securities	$	1	Fair value through other comprehensive income (loss)	Exchange
Trade receivables	$	2,939	Amortized cost	Credit, commodity price
Loan receivable	$	5,048	Amortized cost	Credit
Other receivables	$	475	Amortized cost	Credit, currency
Derivative assets	$	738	Fair value through profit or loss	Credit, currency, interest rate
Restricted cash	$	1,237	Amortized cost	Credit, currency, interest rate
Trade and other payables	$	7,633	Amortized cost	Currency, liquidity

The Company is exposed in varying degrees to a few risks from financial instruments. Management’s close involvement in the operations allows for the identification of risks and variances from expectations. A discussion of the types of financial risks the Company is exposed to, and how such risks are managed by the Company, is provided in note 20 of the annual audited consolidated financial statements for the year ended December 31, 2018.

¹ As at December 31, 2018.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 34 

SECURITIES OUTSTANDING

As of the date of this MD&A, the Company had 169,957,674 common shares issued and outstanding. There were 7,201,714 options, 712,167 restricted share units and 251,400 deferred share units outstanding.

NON-GAAP MEASURES

The Company has included certain non-GAAP performance measures throughout this MD&A, including cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC, AISC per Ag eq oz, mine operating earnings before non- cash items, EBITDA and adjusted EBITDA each as defined in this section. The Company employs these measures internally to measure its operating and financial performance and to assist in business decision making. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and other stakeholders also use these non-GAAP measures as information to evaluate the Company’s operating and financial performance. As there are no standardized methods of calculating these non-GAAP measures, the Company’s methods may differ from those used by others and, therefore, the use of these measures may not be directly comparable to similarly titled measures used by others. Accordingly, these non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

EBITDA and Adjusted EBITDA

EBITDA provides an indication of the Company’s continuing capacity to generate income from operations before taking into account the Company’s financing decisions and costs of amortizing capital assets. Accordingly, EBITDA comprises net income (loss) excluding interest expense, interest income, amortization and depletion, and income taxes.

Adjusted EBITDA adjusts EBITDA to exclude share-based compensation expense, foreign exchange gains and losses, impairment charges, changes in reclamation estimates recorded in EE&D, and non-recurring items. Under IFRS, entities must reflect within compensation expense the cost of share-based compensation. In the Company’s circumstances, share-based compensation can involve significant amounts that will not be settled in cash but are settled by the issuance of shares in exchange. The Company discloses adjusted EBITDA to aid in understanding the results of the Company.

(000’s)		Q4 2018			Q4 2017			FY 2018			FY 2017
Income (loss) for the period	$	(3,559	)	$	(1,918	)	$	(10,063	)	$	1,290
Income tax expense		100			843			652			1,466
Interest income		(438	)		(205	)		(1,518	)		(808	)
Finance costs		251			413			917			962
Amortization of mineral properties, plant and equipment		836			1,120			3,573			3,954
EBITDA	$	(2,810	)	$	253		$	(6,439	)	$	6,864
Foreign exchange loss (gain)		(468	)		268			(1,067	)		(2,292	)
Share-based compensation		217			353			1,321			1,413
Changes in reclamation estimates recorded in EE&D		(210	)		30			(214	)		24
Adjusted EBITDA	$	(3,271	)	$	904		$	(6,399	)	$	6,009

Mine operating earnings before non-cash items

Mine operating earnings before non-cash items provides a measure of the Company’s mine operating earnings on a cash basis. This measure is provided to better assess the cash generation ability of the Company’s operations, before G&A expenses, EE&D expenses, share-based compensation, and amortization. A reconciliation of mine operating earnings is provided in the Results of Operations section.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 35 

Cost per tonne milled

The Company uses cost per tonne milled to manage and evaluate operating performance at each of its mines. Cost per tonne milled is calculated based on total production costs on a sales basis, adjusted for changes in inventory, to arrive at total production costs that relate to metal production during the period. These total production costs are then divided by the number of tonnes milled during the period.

Management believes that the Company’s ability to control cost per tonne milled is one of its key performance indicators of its operations. The Company believes this measure provides investors and analysts with useful information about its underlying cost of operations and how management controls those costs.

The following table reconciles cost per tonne milled to production costs, a component of cost of sales, for the year ended December 31, 2018 and 2017:

	GMC						Topia						Consolidated
(000’s, unless otherwise noted)		FY 2018			FY 2017			FY 2018			FY 2017			FY 2018			FY 2017
Production costs (sales basis)	$	33,679		$	31,308		$	13,735		$	10,444		$	47,414		$	41,752
Change in concentrate inventory		(1,192	)		(460	)		200			301			(992	)		(159	)
Selling costs		(312	)		(1,366	)		(656	)		(549	)		(968	)		(1,915	)
Production costs (production basis)	$	32,175		$	29,482		$	13,279		$	10,196		$	45,454		$	39,678
Tonnes milled, including custom milling		300,624			319,964			73,605			53,745			374,229			373,709
Cost per tonne milled	$	107		$	92		$	180		$	190		$	121		$	106

The following table reconciles cost per tonne milled to production costs, a component of cost of sales, for the three months ended December 31, 2018 and 2017:

	GMC						Topia						Consolidated
(000’s, unless otherwise noted)		Q4 2018			Q4 2017			Q4 2018			Q4 2017			Q4 2018			Q4 2017
Production costs (sales basis)	$	8,025		$	8,601		$	3,605		$	3,821		$	11,630		$	12,422
Change in concentrate inventory		(959	)		(262	)		(31	)		(245	)		(990	)		(507	)
Selling costs		(82	)		(356	)		(196	)		(186	)		(278	)		(542	)
Production costs (production basis)		6,984			7,983			3,378			3,390			10,362			11,373
Tonnes milled, including custom milling		70,387			80,896			18,883			17,500			89,270			98,396
Cost per tonne milled	$	99		$	99		$	179		$	194		$	116		$	116

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 36 

Cash cost

The Company uses cash cost to manage and evaluate operating performance at each of its mines. It is a widely- reported measure in the silver mining industry as a benchmark for performance, but does not have a standardized meaning. Cash cost is calculated based on the total cash operating costs with the deduction of revenues attributable to sales of by-product metals net of the respective smelting and refining charges. By-products consist of gold at GMC, and gold, lead and zinc at Topia.

Management believes that the Company’s ability to control cash cost is one of the key performance indicators for its operations. Having low cash cost facilitates profitability, even during times of declining commodity prices, provides more flexibility in responding to changing market conditions. In addition, a profitable operation results in the generation of positive cash flows, which then improve the Company’s financial condition. The Company believes this measure provides investors and analysts with useful information about the Company's underlying cash cost of operations and the impact of by-product revenue on the Company’s cost structure, and consequently, it is a relevant metric to use to understand the Company’s operating profitability and its ability to generate positive cash flow.

The Company’s primary business is silver production and its future development and current operations focus on maximizing returns from silver production, and other metal production is associated with the silver production process. Accordingly, gold, zinc and lead produced from operations are considered as by-products. As a result, the Company’s non-GAAP cost performance measures are disclosed on a per payable silver ounce basis. When deriving the production costs associated with an ounce of silver, the Company includes by-product credits from gold, zinc and lead sales that are associated with the silver production process, thereby allowing management and other stakeholders to assess the net costs of silver production.

Cash cost and the associated by-product credits are computed based on sales during the period as opposed to a production basis. As such, the amount of the by-product credit may not directly correlate to the production reported for the period. Similarly, the cost per tonne milled during the period may not directly correlate to the cash cost and cash cost per Ag eq oz reported for the same period due to differences between production and sales volumes. Furthermore, the determination of cash cost per Ag eq oz differs from the determination of cash cost.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 37 

The following table reconciles cash cost to production costs for the year ended December 31, 2018 and 2017:

(000’s, unless otherwise noted)	GMC						Topia						Consolidated
	FY 2018			FY 2017			FY 2018			FY 2017			FY 2018			FY 2017
Production costs	$	33,679		$	31,308		$	13,735		$	10,444		$	47,414		$	41,752
Smelting and refining charges		1,656			2,195			531			1,985			2,187			4,180
Revenue from custom milling		–			–			–			–			–			–
Cash operating costs		35,335			33,503			14,266			12,429		$	49,601		$	45,932
Gross by-product revenue
Gold by-product revenue		(24,020	)		(27,432	)		(985	)		(755	)		(25,005	)		(28,187	)
Lead by-product revenue		–			–			(3,904	)		(2,741	)		(3,904	)		(2,741	)
Zinc by-product revenue		–			–			(4,497	)		(3,853	)		(4,497	)		(3,853	)
Cash operating costs, net of by-product revenue	$	11,315		$	6,071		$	4,880		$	5,080		$	16,195		$	11,151
Payable silver ounces sold		1,106,357			1,404,696			707,206			533,006			1,813,563			1,937,702
Cash cost	$	10.23		$	4.32		$	6.90		$	9.53		$	8.93		$	5.76

The following table reconciles cash cost to production costs for the three months ended December 31, 2018 and 2017:

(000’s, unless otherwise noted)	GMC						Topia						Consolidated
	Q4 2018			Q4 2017			Q4 2018			Q4 2017			Q4 2018			Q4 2017
Production costs	$	8,025		$	8,601		$	3,605		$	3,821		$	11,630		$	12,422
Smelting and refining charges		402			532			134			723			536			1,255
Revenue from custom milling		–			–			–			–			–			–
Cash operating costs	$	8,427		$	9,133		$	3,739		$	4,544		$	12,166		$	13,677
Gross by-product revenue
Gold by-product revenue		(5,077	)		(7,205	)		(252	)		(269	)		(5,329	)		(7,474	)
Lead by-product revenue		–			–			(969	)		(1,035	)		(969	)		(1,035	)
Zinc by-product revenue		–			–			(1,149	)		(1,429	)		(1,149	)		(1,429	)
Cash operating costs, net of by-product revenue	$	3,350		$	1,928		$	1,369		$	1,811		$	4,719		$	3,739
Payable silver ounces sold		273,503			341,069			181,643			175,009			455,146			516,078
Cash cost	$	12.25		$	5.65		$	7.54		$	10.35		$	10.37		$	7.25

Cash cost per Ag eq oz

Cash cost per Ag eq oz is calculated based on the total cash operating costs divided by silver equivalent ounces sold. The cash cost per Ag eq oz calculation does not deduct revenues attributable to sales of by-product metals from the costs associated with metal production process, thereby allowing management and other stakeholders to assess the total costs associated with all metal production. Management believes that cash cost per Ag eq oz provides investors and analysts with useful information about its underlying cash cost of operations as it is not influenced by fluctuations in metal prices.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 38 

The following table reconciles cash cost per Ag eq oz to production costs for the year ended December 31, 2018 and 2017:

	GMC				Topia				Consolidated
(000’s, unless otherwise noted)	FY 2018		FY 2017		FY 2018		FY 2017		FY 2018		FY 2017
Production costs	$	33,679	$	31,308	$	13,735	$	10,444	$	47,414	$	41,752
Smelting and refining charges		1,656		2,195		531		1,985		2,187		4,180
Cash operating costs	$	35,335	$	33,503	$	14,266	$	12,429	$	49,601	$	45,932
Silver equivalent ounces sold		2,608,715		2,892,243		1,318,924		901,273		3,927,639		3,793,516
Cash cost per Ag eq oz	$	13.54	$	11.58	$	10.82	$	13.79	$	12.63	$	12.11

The following table reconciles cash cost per Ag eq oz to production costs for the three months ended December 31, 2018 and 2017:

(000’s, unless otherwise noted)	GMC				Topia				Consolidated
	Q4 2018		Q4 2017		Q4 2018		Q4 2017		Q4 2018		Q4 2017
Production costs	$	8,025	$	8,601	$	3,605	$	3,821	$	11,630	$	12,422
Smelting and refining charges		402		532		134		723		536		1,255
Cash operating costs	$	8,427	$	9,133	$	3,739	$	4,544	$	12,166	$	13,677
Silver equivalent ounces sold		598,434		731,403		346,129		306,620		944,563		1,038,023
Cash cost per Ag eq oz	$	14.08	$	12.49	$	10.80	$	14.82	$	12.88	$	13.18

All-in sustaining cost (AISC)

AISC has been calculated based on World Gold Council (“WGC”) guidance released in 2013 and updated in 2018. The WGC is not a regulatory organization and does not have the authority to develop accounting standards for disclosure requirements. The Company believes that the disclosure of this measure provides a broader measure of the cost of producing an ounce of silver at its operations as this measure includes sustaining capital and EE&D expenditures, G&A costs, and other costs not commonly included in the cost of production and therefore not included in cash cost.

AISC starts with cash cost net of by-product revenues and adds G&A expenditures inclusive of share-based compensation, accretion of reclamation provisions, sustaining EE&D expenses, and sustaining capital expenditures. Sustaining expenditures are those costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output. Excluded are non-sustaining capital expenditures, which result in a material increase in the life of assets, materially increase resources or reserves, productive capacity, or future earning potential, or which result in significant improvements in recovery or grade. Management believes that AISC represents the total sustainable costs of producing silver from current operations, and provides additional information of the Company’s operational performance and ability to generate cash flows.

Expenses incurred in respect of Coricancha, El Horcón, Santa Rosa, and other exploration projects were considered non-sustaining.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 39 

The following table reconciles cash operating costs, net of by-product revenue, to AISC for the year ended December 31, 2018 and 2017:

	GMC				Topia				Corporate				Consolidated
(000’s, unless otherwise noted)	FY 2018		FY 2017		FY 2018		FY 2017		FY 2018		FY 2017		FY 2018		FY 2017
Cash operating costs, net of by-product revenue1	$	11,315	$	6,071	$	4,880	$	5,080	$	–	$	–	$	16,195	$	11,151
G&A costs		–		–		–		–		5,338		6,818		5,338		6,818
Share-based compensation		–		–		–		–		1,321		1,413		1,321		1,413
Accretion		71		91		43		69		–		–		114		160
Sustaining EE&D costs		3,172		4,598		298		527		25		105		3,495		5,230
Sustaining capital expenditures		1,087		2,122		790		2,307		–		–		1,877		4,429
All-in sustaining costs	$	15,645	$	12,882	$	6,011	$	7,983	$	6,684	$	8,336	$	28,340	$	29,201
Payable silver ounces sold		1,106,357		1,404,696		707,206		533,006		n/a		n/a		1,813,563		1,937,702
AISC	$	14.14	$	9.17	$	8.50	$	14.98		n/a		n/a	$	15.63	$	15.07

The following table reconciles cash operating costs, net of by-product revenue, to AISC for the three months ended December 31, 2018 and 2017:

	GMC				Topia				Corporate				Consolidated
(000’s, unless otherwise noted)	Q4 2018		Q4 2017		Q4 2018		Q4 2017		Q4 2018		Q4 2017		Q4 2018		Q4 2017
Cash operating costs, net of by-product revenue 1	$	3,350	$	1,928	$	1,369	$	1,811	$	–	$	–	$	4,719	$	3,739
G&A costs		–		–		–		–		1,455		1,556		1,455		1,556
Share-based compensation		–		–		–		–		217		353		217		353
Accretion		22		45		9		34		–		–		31		79
Sustaining EE&D costs		313		1,081		130		27		6		98		449		1,206
Sustaining capital expenditures		289		488		150		175		–		–		439		663
All-in sustaining costs	$	3,974	$	3,542	$	1,658	$	2,047	$	1,678	$	2,007	$	7,310	$	7,596
Payable silver ounces sold		273,503		341,069		181,643		175,009		n/a		n/a		455,146		516,078
AISC	$	14.53	$	10.38	$	9.13	$	11.70		n/a		n/a	$	16.06	$	14.72

AISC excluding corporate G&A expenditures

AISC excluding corporate G&A expenditures reflects the AISC at the Company’s operating mines. The calculation starts with cash cost net of by-product revenues and adds accretion of reclamation provisions, sustaining EE&D expenses, and sustaining capital expenditures for the operating mines. Sustaining expenditures are those costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output.

¹ Cash operating costs, net of by-product revenue, are reconciled to the Company’s consolidated financial statements in the cash cost table.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 40 

The following table reconciles cash operating costs, net of by-product revenue, to AISC excluding corporate G&A expenditures for the year ended December 31, 2018 and 2017:

	GMC				Topia				Consolidated
(000’s, unless otherwise noted)	FY 2018		FY 2017		FY 2018		FY 2017		FY 2018		FY 2017
Cash operating costs, net of by-product revenue1	$	11,315	$	6,071	$	4,880	$	5,080	$	16,195	$	11,151
Accretion		71		91		43		69		114		160
Sustaining EE&D costs		3,172		4,598		298		527		3,470		5,125
Sustaining capital expenditures		1,087		2,122		790		2,307		1,877		4,429
All-in sustaining costs	$	15,645	$	12,882	$	6,011	$	7,983	$	21,656	$	20,865
Payable silver ounces sold		1,106,357		1,404,696		707,206		533,006		1,813,563		1,937,702
AISC excluding corporate G&A expenditures	$	14.14	$	9.17	$	8.50	$	14.98	$	11.94	$	10.77

The following table reconciles cash operating costs, net of by-product revenue, to AISC excluding corporate G&A expenditures for the three months ended December 31, 2018 and 2017:

	GMC				Topia				Consolidated
(000’s, unless otherwise noted)	Q4 2018		Q4 2017		Q4 2018		Q4 2017		Q4 2018		Q4 2017
Cash operating costs, net of by-product revenue 1	$	3,350	$	1,928	$	1,369	$	1,811	$	4,719	$	3,739
Accretion		22		45		9		34		31		79
Sustaining EE&D costs		313		1,081		130		27		443		1,108
Sustaining capital expenditures		289		488		150		175		439		663
All-in sustaining costs	$	3,974	$	3,542	$	1,658	$	2,047	$	5,632	$	5,589
Payable silver ounces sold		273,503		341,069		181,643		175,009		455,146		516,078
AISC excluding corporate G&A expenditures	$	14.53	$	10.38	$	9.13	$	11.70	$	12.37	$	10.83

AISC per Ag eq oz

AISC per Ag eq oz starts with operating cash cost and adds G&A expenditures inclusive of share-based compensation, accretion of reclamation provisions, sustaining EE&D expenses, and sustaining capital expenditures. The Company believes that the disclosure of this measure provides a broader measure of the cost of all metal production at its operations, as measured by silver equivalent ounces, as the cost metric includes sustaining capital and EE&D expenditures, G&A costs, and other costs not commonly included in the cost of production and therefore not included in cash cost per Ag eq oz.

¹ Cash operating costs, net of by-product revenue, are reconciled to the Company’s consoidated financial statements in the cash cost table.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 41 

The following table reconciles cash operating costs, net of by-product revenue, to AISC for the year ended December 31, 2018 and 2017:

	GMC				Topia				Corporate				Consolidated
(000’s, unless otherwise noted)	FY 2018		FY 2017		FY 2018		FY 2017		FY 2018		FY 2017		FY 2018		FY 2017
Cash operating costs1	$	35,335	$	33,503	$	14,266	$	12,429	$	–	$	–	$	49,601	$	45,932
G&A costs		–		–		–		–		5,338		6,818		5,338		6,818
Share-based compensation		–		–		–		–		1,321		1,413		1,321		1,413
Accretion		71		91		43		69		–		–		114		160
Sustaining EE&D costs		3,172		4,598		298		527		25		105		3,495		5,230
Sustaining capital expenditures		1,087		2,122		790		2,307		–		–		1,877		4,429
All-in sustaining costs	$	39,665	$	40,314	$	15,397	$	15,332	$	6,684	$	8,336	$	61,746	$	63,982
Silver equivalent ounces sold		2,608,715		2,892,243		1,318,924		901,273		n/a		n/a		3,927,639		3,793,516
AISC per Ag eq oz	$	15.20	$	13.94	$	11.67	$	17.01		n/a		n/a	$	15.72	$	16.87

The following table reconciles cash operating costs to AISC per Ag eq oz for the three months ended December 31, 2018 and 2017:

	GMC				Topia				Corporate				Consolidated
(000’s, unless otherwise noted)	Q4 2018		Q4 2017		Q4 2018		Q4 2017		Q4 2018		Q4 2017		Q4 2018		Q4 2017
Cash operating costs1	$	8,427	$	9,133	$	3,739	$	4,544	$	–	$	–	$	12,166	$	13,677
G&A costs		–		–		–		–		1,455		1,556		1,455		1,556
Share-based compensation		–		–		–		–		217		353		217		353
Accretion		22		45		9		34		–		–		31		79
Sustaining EE&D costs		313		1,081		130		27		6		98		449		1,206
Sustaining capital expenditures		289		488		150		175		–		–		439		663
All-in sustaining costs	$	9,051	$	10,747	$	4,028	$	4,780	$	1,678	$	2,007	$	14,757	$	17,534
Silver equivalent ounces sold		598,434		731,403		346,129		306,620		n/a		n/a		944,563		1,038,023
AISC per Ag eq oz	$	15.13	$	14.69	$	11.64	$	15.59		n/a		n/a	$	15.62	$	16.89

INTERNAL CONTROLS OVER FINANCIAL REPORTING

Disclosure controls and procedures within the Company have been designed to provide reasonable assurance that all relevant information is identified to its President and Chief Executive Officer (“CEO”), its Chief Financial Officer (“CFO”) to ensure appropriate and timely decisions are made regarding public disclosure.

Internal controls over financial reporting have been designed by management under the supervision of, and with the participation of the Company's CEO and CFO, to provide reasonable assurance regarding the reliability of the Company’s financial reporting and its preparation of financial statements for external purposes in accordance with IFRS.

¹ Cash operating costs are reconciled to the Company’s financial statements in the cash cost per Ag eq oz table.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 42 

During the three months ended September 30, 2018, the Company determined that a material weakness in internal control over financial reporting existed as a result of misstatements identified by the Company’s auditors during their interim review of the September 30, 2018 interim financial statements. The misstatements were corrected in the September 30, 2018 interim financial statements and there is no material effect on previously issued financial statements. The control weakness related to the ineffective operation of control activities designed to identify material errors in the application of IFRS for changes in the reclamation and remediation provision and reimbursement rights. As at the date of this MD&A, the Company has remediated this matter, which included implementing enhanced review activities over the application of IFRS in these areas as part of the financial close process. Other than described above, there have been no changes that materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial preparation and presentation.

Management's Report on Disclosure Controls and Procedures

Management, under the supervision of and with the participation of the Company's CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures and concluded, as at December 31, 2018, that such disclosure controls and procedures were effective.

Management's Report on Internal Controls Over Financial Reporting

Management, under the supervision of and with the participation of the Company’s CEO and CFO, evaluated the effectiveness of the Company’s internal controls over financial reporting. In making this evaluation, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commissions (“COSO”) in «Internal Control - Integrated Framework (2013)». Based on that evaluation, management and the CEO and CFO have concluded that, as at December 31, 2018, the Company’s internal controls over financial reporting were effective.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this document constitute “forward-looking statements” within the meaning of the United States "Private Securities Litigation Reform Act" of 1995 and “forward-looking information” within Canadian securities laws (collectively, “forward-looking statements”). All statements, other than statements of historical fact, addressing activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the words “anticipates”, “believes”, “expects”, “may”, “likely”, “plans”, “intends”, “expects”, “may”, “forecast”, “project”, “budgets”, “potential”, and “outlook”, or similar words, or statements that certain events or conditions “may”, “might”, “could”, “can”, “would”, or “will” occur. Forward-looking statements reflect the Company’s current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

In particular, this MD&A includes forward-looking statements, principally under the section titled "Outlook", but also elsewhere in this document relating to estimates, forecasts, and statements as to management’s expectations, opinions and assumptions with respect to the future production of silver, gold, lead and zinc; profit, operating costs and cash flows; grade improvements; sales volume and selling prices of products; capital and exploration expenditures, plans, timing, progress, and expectations for the development of the Company’s mines and projects; the timing of production and the cash and total costs of production; sensitivity of earnings to changes in commodity prices and exchange rates; the impact of foreign currency exchange rates; expenditures to increase or determine reserves and resources; sufficiency of available capital resources; title to claims; expansion and acquisition plans; and the future plans and expectations for the Company’s properties and operations. Examples of specific information in this MD&A that may constitute forward-looking statements are:

Regarding Beadell:

· Expectation that the acquisition of Beadell will be completed in early March 2019;

· Expectations regarding the timing of updating the 2019 outlook and guidance to include Tucano;

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 43 

· Expectations regarding the exploration plans for Tucano;

Regarding GMC:

· The compilation and submission of technical information to CONAGUA, and CONAGUA’s review of such information is expected to continue;

· Expectations that the current tailings footprint at GMC can be maintained and can support operations at GMC until at least 2021;

· Expectations that permits associated with the use and expansion of the TSF at GMC will be granted in due course and in favourable terms, with no suspension of GMC operations;

Regarding Topia:

· Expectations that permits associated with the use of the TSF at Topia will continue to be granted in due course, with no suspension of Topia operations;

· Expectations regarding the completion of the Phase II TSF at Topia;

· Expectations regrading increasing the processing capacity from Topia in 2019;

· Expectations that any potential gaps in existing compliance associated with the ongoing environmental review of Topia’s operations will be capable of being addressed through a mitigation plan;

· The expectation that any mitigation measures that may arise from the PROFEPA audit of Topia will extend through 2019 and beyond;

Regarding Coricancha:

· The expectation that pending proposals for modification of an approved closure plan for Coricancha will conclude with the approval of the authorities, which will also resolve any related fines or penalties;

· The Company’s plans for Coricancha, including further evaluations of the current mine and processing infrastructure, mine rehabilitation and development in preparation for underground drilling and environmental studies and the results of the planned technical, economic and environmental studies;

· Expectations regarding the outcome of Coricancha’s Bulk Sample Program;

· Expectations that the Company is anticipating to be able to make a decision by the end of March 2019 to commence the restart of Coricancha;

· Expectations regarding the costs to restart Coricancha;

· Expectations regarding the reclamation process at Coricancha;

Regarding general corporate matters:

· Guidance provided in the "Outlook" section of this MD&A, such as silver production, cash cost, AISC, capital expenditures, and EE&D expenditures;

· Expectations that cash flows from operations along with current net working capital will be sufficient to fund capital investment and development programs for the foreseeable future;

· Expectations regarding access to additional capital to fund additional expansion or development plans, or to undertake an acquisition; and

· Expectations in respect of permitting and development activities.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 44 

These forward-looking statements are necessarily based on a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, as described below. These assumptions made by the Company in preparing the forward looking information contained in this MD&A, which may prove to be incorrect, include, but are not limited to, general business and economic conditions; the supply and demand for, deliveries of, and the level and volatility of prices of, silver, gold, lead, zinc, and copper; expected Canadian dollar, MXN, Peruvian soles and USD exchange rates; the timing of the receipt of regulatory and governmental approvals for development projects and other operations; costs of production, and production and productivity levels; estimated future capital expenditures and cash flows; the continuing availability of water and power resources for operations; the accuracy of the interpretation and assumptions used in calculating reserve and resource estimates (including with respect to size, grade and recoverability); the accuracy of the information included or implied in the various independently produced and published technical reports; the geological, operational and price assumptions on which these technical reports are based; conditions in the financial markets; the ability to attract and retain skilled staff; the ability to procure equipment and operating supplies and that there are no material unanticipated variations in the cost of energy or supplies; the ability to secure contracts for the sale of the Company’s products (metals concentrates); the execution and outcome of current or future exploration activities; that current financial resources will be sufficient for planned activities and to complete further exploration programs; the possibility of project delays and cost overruns, or unanticipated excessive operating costs and expenses; the Company’s ability to maintain adequate internal control over financial reporting, and disclosure controls and procedures; the ability of contractors to perform their contractual obligations; operations not being disrupted by issues such as mechanical failures, labour or social disturbances, illegal occupations and adverse weather conditions; that financial resources will be sufficient to fund new acquisitions, if any.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, changes in commodity prices; changes in foreign currency exchange rates; acts of foreign governments; political risk and social unrest; uncertainties related to title to the Company’s mineral properties and the surface rights thereon, including the Company’s ability to acquire, or economically acquire, the surface rights to certain of the Company’s exploration and development projects; unanticipated operational difficulties due to adverse weather conditions; failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters; failure of counterparties to perform their contractual obligations; delays in obtaining necessary permits for extension of operations; an unfavourable decision by the MEM with respect to the proposed modification to the Coricancha reclamation plan; adverse results of the technical, economic and environmental studies to be completed for Coricancha; inability to maintain or obtain permits for operations; deterioration of general economic conditions, and other risks described herein or in the Company’s most recent Form 40-F/AIF.

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this MD&A. The Company will update forward-looking statements and information if and when, and to the extent required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Further information can be found in the section entitled "Description of the Business – Risk Factors" in the most recent Form 40-F/AIF on file with the SEC and Canadian provincial securities regulatory authorities. Readers are advised to carefully review and consider the risk factors identified in the Form 40-F/AIF for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. It is recommended that prospective investors consult the more complete discussion of the Company’s business, financial condition and prospects that is included in the Form 40-F/AIF.

CAUTIONARY NOTE TO U.S. INVESTORS

This MD&A has been prepared in accordance with Canada securities regulations, which differs from the securities regulations of the United States. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are used in accordance with Canadian NI 43-101, however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all the mineral deposits in these categories will ever be converted into reserves. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other advanced economic studies. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable.

GREAT PANTHER SILVER LIMITED Management’s Discussion & Analysis Page 45 

EX-99.4

Exhibit 99.4

CERTIFICATION

I, James M. Bannantine, certify that:

(1)	I have reviewed this Annual Report on Form 40-F of Great Panther Mining Limited for the year ended December 31, 2018.
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report.
(4)	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting.
(5)	The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the issuer’s auditors and the audit committee of issuer’s board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: March 19, 2019

By:	/s/ James M. Bannantine
Name:	James M. Bannantine
Title:	Chief Executive Officer

EX-99.5

Exhibit 99.5

CERTIFICATION

I, Jim Zadra, certify that:

(1)	I have reviewed this Annual Report on Form 40-F of Great Panther Mining Limited for the year ended December 31, 2018.
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report.
(4)	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting.
(5)	The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the issuer’s auditors and the audit committee of issuer’s board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: March 19, 2019

By:	/s/ Jim Zadra
Name:	Jim Zadra
Title:	Chief Financial Officer

EX-99.6

Exhibit 99.6

CERTIFICATION
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, James M. Bannantine, Chief Executive Officer of Great Panther Mining Limited (the “Company”), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(i) the Annual Report on Form 40-F of the Company for the fiscal year ended December 31, 2018 (the “Annual Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ James M. Bannantine
Name:	James M. Bannantine
Title:	Chief Executive Officer
Date:	March 19, 2019

EX-99.7

Exhibit 99.7

CERTIFICATION
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Jim Zadra, Chief Financial Officer of Great Panther Mining Limited (the “Company”), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(i) the Annual Report on Form 40-F of the Company for the fiscal year ended December 31, 2018 (the “Annual Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Jim Zadra
Name:	Jim Zadra
Title:	Chief Financial Officer
Date:	March 19, 2019

EX-99.8

Exhibit 99.8

KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone Fax Internet (604) 691-3000 (604) 691-3031 www.kpmg.ca

Consent of Independent Registered Public Accounting Firm

We consent to the use of our reports, each dated February 28, 2019, with respect to the consolidated financial statements of Great Panther Silver Limited (the “Company”) as at and for the years ended December 31, 2018 and 2017 and the effectiveness of internal control over financial reporting included in this annual report on Form 40-F dated March 20, 2019. Our report on the consolidated financial statements refers to changes to accounting policies for revenue recognition and financial instruments in 2018 due to the adoption of IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments.

We also consent to the incorporation by reference of such reports in the Registration Statement on Form F-10 (No. 333-214201) of the Company.

KPMG LLP

Chartered Professional Accountants

March 20, 2019

Vancouver, Canada

EX-99.9

Exhibit 99.9

CONSENT OF ROBERT F. BROWN

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcon and Santa Rosa Projects dated February 20, 2017; and

· NI 43-101 Report on the Topia Mine Mineral Resource Estimates Topia Mine Mineral Resource Estimation as of July 31, 2018 dated February 28, 2019

and to references to the Technical Reports, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 , as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019

/s/ Robert F. Brown

Robert F. Brown, P.Eng.

EX-99.10

Exhibit 99.10

CONSENT OF RONALD TURNER

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the "Technical Report"):

· Technical Report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex”, dated July 13, 2018.

in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”).

Dated the 15^th day of March, 2019

/s/ Ronald Turner

Ronald Turner, P. Geo.

EX-99.11

Exhibit 99.11

CONSENT OF DANIEL A. SAINT DON

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the "Technical Report"):

· Technical Report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex”, dated July 13, 2018.

in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”).

Dated the 15^th day of March, 2019

/s/ Daniel A. Saint Don

Daniel A. Saint Don, P.Eng.

EX-99.12

Exhibit 99.12

CONSENT OF JEFFREY L. WOODS

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex”, dated July 13, 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019

/s/ Jeffrey L. Woods

Jeffrey L. Woods, SME, MMSA

EX-99.13

Exhibit 99.13

CONSENT OF MATTHEW C. WUNDER

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine and San Ignacio Mine, Guanajuato State, Mexico”, dated February 28, 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ Matthew C. Wunder

Matthew C. Wunder, P.Geo.

EX-99.14

Exhibit 99.14

CONSENT OF BRIAN R WOLFE

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F 

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ Brian R Wolfe

Brian R Wolfe, BSc(Hons), PGrad Cert, MAIG

EX-99.15

Exhibit 99.15

CONSENT OF GARY METHVEN

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ Gary Methven

Gary Methven, P.Eng.

EX-99.16

Exhibit 99.16

CONSENT OF JUAN JOSE MORENO DELLEPIANE

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ JUAN JOSE MORENO DELLEPIANE

JUAN JOSE MORENO DELLEPIANE MIEAust, CPEng.

EX-99.17

Exhibit 99.17

CONSENT OF NIGEL SPICER

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ NIGEL SPICER

NIGEL SPICER CEng.

EX-99.18

Exhibit 99.18

CONSENT OF RAY H WALTON

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ RAYMOND HENRY WALTON

RAYMOND HENRY WALTON

EX-99.19

Exhibit 99.19

CONSENT OF RUY LACOURT RODRIGUES

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ Ruy Lacourt Rodrigues

RUY LACOURT RODRIGUES

Consultant Mining Engineer

Registered Member of the Society for Mining,

Metallurgy and Exploration, Inc. (SME 4172669RM)

EX-99.20

Exhibit 99.20

CONSENT OF MARCELO ANTONIO BATELOCHI

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Limited (the “Company”)
	Annual Report on Form 40-F
	Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

• Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/  MARCELO ANTONIO BATELOCHI

MARCELO ANTONIO BATELOCHI

MAUSIMM (CP) Nb 205477

EX-99.21

Exhibit 99.21

CONSENT OF PETER O’BRYAN

To: United States Securities and Exchange Commission

Re: Great Panther Mining Limited (the “Company”)

Annual Report on Form 40-F

Consent of Expert

This consent is provided in connection with the Company’s Annual Report on Form 40-F for the year ended December 31, 2018 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2018 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2018 (the “MD&A”).

I hereby consent to the use of my name in connection with reference to my involvement in the preparation of the following technical reports (the "Technical Reports"):

· Technical Report entitled “Mineral Resource and Reserve Update for the Tucano Gold Mine, Amapa, Brazil”, dated 31 October 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10, as amended (SEC File No. 333-214201) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 15^th day of March, 2019.

/s/ Peter R O’Bryan

PETER R O/BRYAN BE (Mining) MEngSc MAusIMM (CP)

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Document And Entity Information	12 Months Ended
	Dec. 31, 2018 shares
Document Information [Line Items]
Document Type	40-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Registrant Name	Great Panther Silver Ltd
Entity Central Index Key	0001300050
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Trading Symbol	GPL
Entity Common Stock, Shares Outstanding	0
Entity Emerging Growth Company	false

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 24,524	$ 36,797
Short-term deposits	26,057	20,091
Trade and other receivables (note 5)	8,887	14,780
Inventories (note 6(a))	4,828	5,294
Loan receivable (note 7)	5,048	0
Reimbursement rights (note 10)	6,385	4,446
Derivative assets (note 12)	738	0
Other current assets	504	401
Total current assets	76,971	81,809
Non-current assets:
Restricted cash (note 9(a))	1,237	1,234
Inventories – non-current (note 6(b))	1,420	1,580
Reimbursement rights (note 10)	4,470	6,588
Mineral properties, plant and equipment (note 8)	13,391	14,966
Exploration and evaluation assets (note 9)	15,065	15,633
Deferred tax assets (note 17)	222	70
Total Assets	112,776	121,880
Current liabilities:
Trade payables and accrued liabilities (note 11)	10,647	11,313
Derivative liabilities (note 12)	0	85
Reclamation and remediation provision – current (note 13)	4,473	4,446
Total current liabilities	15,120	15,844
Non-current liabilities:
Reclamation and remediation provision (note 13)	22,947	22,965
Deferred tax liabilities (note 17)	2,053	1,930
Total liabilities	40,120	40,739
Shareholders' equity:
Share capital (note 14)	130,912	130,201
Reserves	19,829	18,962
Deficit	(78,085)	(68,022)
Total Equity	72,656	81,141
Total Liabilities and Stockholders Equity	$ 112,776	$ 121,880

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CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue (notes 3(q) and 16)	$ 59,434	$ 63,746
Cost of sales	51,249	46,057
Mine operating earnings	8,185	17,689
General and administrative expenses	6,389	7,822
Expense arising from exploration for and evaluation of mineral resources	13,053	9,524
Finance and other income (expense)
Interest income	1,518	808
Finance costs	(20)	(171)
Accretion expense	(897)	(791)
Foreign exchange gain	1,067	2,292
Other income	178	275
Total Finance and other (expense) income	1,846	2,413
Income (loss) before income taxes	(9,411)	2,756
Income tax expense (note 17)	652	1,466
Net income (loss) for the year	$ (10,063)	$ 1,290
Earnings per share [abstract]
Earnings (loss) per share – basic and diluted (note 15)	$ (0.06)	$ 0.01
Cost Of Sale [Member]
Production costs	$ 47,414	$ 41,752
Amortization and depletion	3,462	3,878
Share-based compensation	373	427
General and administrative expenses [Member]
Administrative expenses	5,338	6,818
Amortization and depletion	111	76
Share-based compensation	940	928
Exploration, evaluation and development expenses [Member]
Exploration and evaluation expenses (note 24)	11,329	7,475
Mine development costs	1,716	1,991
Share-based compensation	$ 8	$ 58

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net income (loss) for the year	$ (10,063)	$ 1,290
Other comprehensive income (loss) ("OCI"), net of tax
Foreign currency translation	(15)	(11)
Change in fair value of financial assets designated as fair value through OCI, net of tax	(1)	(6)
Total other comprehensive income (loss), net of tax	(16)	(17)
Total comprehensive income (loss) for the year	$ (10,079)	$ 1,273

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Issued capital [member]	Reserve of share-based payments [member]	Reserve of exchange differences on translation [member]	At fair value [member]	Capital reserve [member]	Retained earnings [member]
Beginning Balance at Dec. 31, 2016	$ 77,288	$ 128,485	$ 15,086	$ 3,204	$ (175)	$ 18,115	$ (69,312)
Beginning Balance (shares) at Dec. 31, 2016		166,938
Increase (decrease) through exercise of options, equity	1,167	$ 1,716	(549)			(549)
Share options exercised (shares)		1,445
Share-based compensation	1,413		1,413			1,413
Comprehensive income (loss)	1,273			(11)	(6)	(17)	1,290
Ending Balance at Dec. 31, 2017	81,141	$ 130,201	15,950	3,193	(181)	18,962	(68,022)
Ending Balance (shares) at Dec. 31, 2017		168,383
Increase (decrease) through exercise of options, equity	349	$ 505	(156)			(156)
Share options exercised (shares)		590
Restricted and deferred share units settled	(76)	$ 206	(282)			(282)
Restricted and deferred share units settled (shares)		192
Share-based compensation	1,321		1,321			1,321
Comprehensive income (loss)	(10,079)			(15)	(1)	(16)	(10,063)
Ending Balance at Dec. 31, 2018	$ 72,656	$ 130,912	$ 16,833	$ 3,178	$ (182)	$ 19,829	$ (78,085)
Ending Balance (shares) at Dec. 31, 2018		169,165

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income (loss) for the year	$ (10,063)	$ 1,290
Items not involving cash:
Amortization and depletion	3,573	3,954
Unrealized foreign exchange gain	(926)	(159)
Income tax expense	652	1,466
Share-based compensation	1,321	1,413
Other non-cash items (note 23)	(774)	(39)
Interest received, classified as operating activities	1,185	765
Interest paid	(38)	(134)
Income taxes paid	(1,652)	(2,187)
Cash flows from (used in) operations before changes in working capital	(6,722)	6,369
Changes in non-cash working capital:
Trade and other receivables	6,357	(3,688)
Inventories	510	355
Other current assets	(105)	135
Trade payables and accrued liabilities	287	2,532
Net cash provided by operating activities	327	5,703
Cash flows from (used in) investing activities [abstract]
Investments in short-term deposits, net	(5,965)	(5,071)
Loan advanced to Beadell (note 7)	(5,000)	0
Additions to mineral properties, plant and equipment	(2,069)	(5,265)
Cash received upon acquisition of Coricancha (note 9(a))	0	105
Cash restricted for Coricancha environmental bond (note 9(a))	0	(1,234)
Other	0	186
Net cash used in investing activities	(13,034)	(11,279)
Cash flows from (used in) financing activities [abstract]
Proceeds from exercise of options	349	1,207
Net cash from financing activities	349	1,207
Effect of exchange rate changes on cash and cash equivalents	85	(476)
Decrease in cash and cash equivalents	(12,273)	(4,845)
Cash and cash equivalents, beginning of year	36,797	41,642
Cash and cash equivalents, end of year	$ 24,524	$ 36,797

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NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2018

NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

Great Panther Silver Limited (the “Company” or “Great Panther”) is a public company which is listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE American trading under the symbol GPL and is incorporated and domiciled in Canada. The Company’s registered and records office is located at 1330 – 200 Granville Street, Vancouver, BC.

The Company’s wholly-owned mining operations in Mexico are the Topia Mine (“Topia”), and the Guanajuato Mine Complex (“GMC”) which comprises the Company’s Guanajuato Mine, the San Ignacio Mine (“San Ignacio”), and the Cata processing plant. The Topia Mine is located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico, and produces concentrates containing silver, gold, lead and zinc. The GMC produces silver and gold concentrate and is located in central Mexico approximately 30 kilometres from the Guanajuato International Airport.

In June 2017, Great Panther acquired the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead-zinc mine and 600 tonnes per day processing facility, located in the central Andes of Peru, approximately 90 kilometres east of Lima, and has been on care and maintenance since August 2013 (note 9(a)). The Company filed a positive Preliminary Economic Assessment on Coricancha in July 2018, and is undertaking a trial stope and bulk sample program (the “Bulk Sample Program” or “BSP”) in order to further de-risk the project. Following the completion of the BSP, the Company expects to be able to make a decision by the end of March 2019 on whether to commence the restart of Coricancha.

On September 23, 2018, the Company announced the signing of a scheme implementation deed (the "Implementation Deed") pursuant to which the Company has agreed to acquire all of the issued ordinary shares of Beadell Resources Limited (“Beadell”), a gold mining company listed on the Australian Securities Exchange and which operates the 100% owned Tucano Gold Mine (“Tucano”) in Amapá state, northern Brazil. On February 11 and 12, 2019, respectively, both the Company’s and Beadell’s shareholders approved the scheme. On February 15, 2019, the transaction was approved by the Supreme Court of Western Australia. Closing of the transaction is expected the first week of March 2019 following completion of customary closing requirements. Note 21(b) provides additional details of the transaction.

The Company also owns several exploration properties: El Horcón, Santa Rosa, and Plomo in Mexico; and Argosy in Canada. The El Horcón property is located 100 kilometres by road northwest of Guanajuato, Santa Rosa is located 15 kilometres northeast of Guanajuato, and the Plomo property is located in Sonora, Mexico. The Argosy property is located in the Red Lake Mining District in northwestern Ontario, Canada.

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BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2018

BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

These consolidated financial statements have been prepared by management of the Company in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). On February 28, 2019, the Company's Board of Directors approved these consolidated financial statements for issuance.

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

3. SIGNIFICANT ACCOUNTING POLICIES

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements.

(a) Basis of consolidation

These consolidated financial statements include the accounts of the Company. All material intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation.

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and has the ability to affect those returns through its power over the investee.

Great Panther Silver Limited is the ultimate parent entity of the group. At December 31, 2018, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

Name	Location	Ownership	Principal Activity
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Metálicos de Durango S.A. de C.V.	Mexico	100%	Mining services company
Minera de Villa Seca S.A. de C.V.	Mexico	100%	Mining services company
Coboro Minerales de México S.A. de C.V.	Mexico	100%	Exploration company
Great Panther Coricancha S.A.	Peru	100%	Exploration company
Great Panther Silver Peru S.A.C.	Peru	100%	Exploration company
Cangold Peru S.A.C.	Peru	100%	Exploration company
Great Panther Finance Canada Limited	Canada	100%	Financing company
Cangold Limited	Canada	100%	Exploration company
GP Finance International S.a.r.l.	Luxembourg	100%	Financing company

(b) Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis except for the following items in the statement of financial position:

 Derivative financial instruments are measured at fair value;

 Financial instruments at fair value through profit or loss are measured at fair value; and

 Financial assets at fair value through other comprehensive income are measured at fair value.

(c) Foreign currency translation

These consolidated financial statements are presented in US dollars which is the Canadian parent company’s presentation currency and functional currency. The functional currency of eight of the Company’s subsidiaries is also the US dollars. The functional currency of two of the Company’s Mexican subsidiaries is the Mexican peso.

(i) Transactions and balances

Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in net income.

(ii) Translation of subsidiary results into the presentation currency

The operating results and statements of financial position of the Company’s subsidiaries which have a functional currency that differs from the Company’s presentation currency are translated into the presentation currency as follows:

 Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;

 Income and expenses for each statement of comprehensive income are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and

 All resulting exchange differences are recognized as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are recognized in net income as part of the gain or loss on sale.

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of 90 days or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Transaction costs are expensed when incurred. Cash and cash equivalents are designated as financial assets at amortized cost.

(e) Inventories

Inventories consist of:

 Ore stockpiles and concentrate inventories which are stated at the lower of weighted average cost and net realizable value. Costs include production costs and amortization and depletion directly attributable to the inventory production process. Net realizable value is the expected selling price for the finished product less the costs to put the product into saleable form and delivery to the selling location.

 Materials and supplies inventory, which includes the cost of consumables used in operations are stated at the lower of weighted average cost and replacement cost which approximates net realizable value. Major spare parts and standby equipment are included in property, plant, and equipment when they are expected to be used over more than one period, if they can only be used in connection with an item of property, plant and equipment.

 Silver bullion coins and bars are recorded at lower of cost and net realizable value.

(f) Mineral properties, plant and equipment

(i) Mineral properties

Mine development costs are capitalized if management determines that there is sufficient evidence to support probability of generating positive economic returns in the future. A mineral resource is considered to have economic potential when the technical feasibility and commercial viability of extraction of the mineral resource is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management determines whether the following conditions have been met: there is a probable future benefit that will contribute to future cash inflows; the Company can obtain the benefit and control access to it; and the transaction or event giving rise to the benefit has already occurred.

In the event that the Company does not have sufficient evidence to support the probability of generating positive economic returns in the future, mine development costs are expensed to profit or loss. The Company expenses mine development costs for the San Ignacio Mine. In September 2015, the Company commenced expensing mine development costs for the Guanajuato Mine when the published Measured and Indicated Resources for the Guanajuato Mine represented less than twelve months of remaining production. Mine development costs incurred at the GMC includes expenditures associated with accessing mineral resources and gaining further information regarding the ore body, whether by means of ramp development, drilling or sampling.

Producing mineral properties acquired through business acquisitions are recognized at fair value on the acquisition date. Where applicable, the estimated cost of mine reclamation and remediation for the property is included in the cost of mineral properties.

(ii) Plant and equipment

Plant and equipment is originally recorded at cost at the time of construction, purchase, or acquisition, and is subsequently measured at cost less accumulated amortization and impairment. Cost includes all costs required to bring the plant and equipment into a condition and location where it is capable of operating according to its intended use.

Costs incurred for major overhaul of existing equipment or infrastructure are capitalized as plant and equipment and are subject to amortization once they are commissioned. Costs associated with routine maintenance and repairs are charged to operations as incurred.

(iii) Amortization and depletion

Plant and equipment is amortized using the straight-line method over the shorter of the estimated remaining life of the mine and the estimated remaining useful life of the asset. All other equipment, buildings and furniture and fixtures which do not relate directly to the mining operations are amortized over the useful life of the asset. Land is not amortized.

The following amortization rates are used by the Company for plant, equipment, buildings and furniture and fixtures which do not relate specifically to mining activities:

Computers	straight line over estimated useful life of 3 years
Furniture	straight line over estimated useful life of 5 years
Office	straight line over estimated useful life of 5 years
Software	straight line over estimated useful life of 3 years
Leasehold improvements	straight line over term of the lease

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in profit or loss.

(g) Exploration and evaluation assets

(i) Exploration properties

Exploration properties represent properties for which the Company has not yet performed sufficient exploration work to determine whether significant mineralization exists. Exploration properties are carried at the cost of acquisition and included in exploration and evaluation assets. Exploration expenditures incurred on such properties are expensed as incurred as exploration expenditures in profit or loss. Examples of exploration expenditures that are expensed under this policy include topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; and sampling. The Company considers its Coricancha, Santa Rosa, El Horcón, Plomo and Argosy projects to be in this category as at December 31, 2018, and consequently, expenses all costs associated with these projects as they are incurred.

(ii) Evaluation properties

Evaluation properties represent properties for which the Company has identified a mineral resource of such quantity and grade or quality that it has reasonable prospects for economic extraction. A mineral resource is considered to have reasonable prospects for economic extraction when the Company has sufficient information to determine that extraction is viable and feasible at expected long-term metal prices. Expenditures made in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource are capitalized and included in exploration and evaluation assets. Evaluation expenditures include the costs of drilling, sampling and other costs related to defining and delineating the mineral deposit.

When the technical feasibility and commercial viability of the extraction of mineral resources associated with the Company’s evaluation properties are demonstrable and management has made a decision to proceed with development, the capitalized costs associated with evaluation assets are reclassified from exploration and evaluation assets to mineral properties. They are tested for impairment at that time.

(iii) Amortization and depletion

Exploration and evaluation assets are not subject to depletion or amortization, but rather are tested for impairment when circumstances indicate that the carrying value may not be recoverable.

(h) Leased assets

Leases in which the Company assumes substantially all risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value and the present value of the minimum lease payments at inception of the lease. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases are operating leases and are recognized on a straight-line basis in the Company’s statement of comprehensive income.

(i) Impairment of non-financial assets

Exploration and evaluation assets are tested for impairment when circumstances indicate that the carrying value may not be recoverable. When facts and circumstances suggest that the carrying amount of an asset exceeds its recoverable amount, the Company performs an impairment test by comparing the recoverable amount to the carrying amount of the relevant exploration and evaluation property. When the carrying value exceeds the recoverable amount of the relevant exploration and evaluation property, an impairment charge is recorded and the property is written down to its recoverable amount. In addition, exploration and evaluation assets are tested for impairment at the date they are transferred to mineral properties, plant and equipment.

The Company’s mineral properties, plant and equipment are reviewed for any indication of impairment at each financial reporting date or at any time if an indicator of impairment is considered to exist. If any such indicators exist, an estimate of the recoverable amount is undertaken, being the higher of an asset’s fair value less costs of disposal and the asset’s value in use. If the asset’s carrying amount exceeds its recoverable amount then an impairment loss is recognized in net income or loss for the period, and the carrying value of the asset on the statement of financial position is reduced to its recoverable amount. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value of mineral properties is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, discounted by an appropriate pre-tax discount rate to arrive at a net present value.

Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Value in use is determined by applying assumptions specific to the Company’s continued use which includes future development. As such, these assumptions may differ from those used in calculating fair value.

In testing for indicators of impairment and performing impairment calculations, assets are grouped into cash-generating units, which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. The estimates of future discounted cash flows are subject to risks and uncertainties including estimated production, grades, recoveries, future metals prices, discount rates, exchange rates and operating costs.

Non-financial assets other than goodwill that have suffered an impairment are evaluated for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not been recorded.

(j) Share-based compensation

Equity-settled share-based compensation arrangements such as the Company’s stock option plan, restricted share unit plan, and deferred share unit plan are measured at fair value at the date of grant and recorded within equity. The fair value at grant date of all share-based compensation is recognized as compensation expense over the vesting period, with a corresponding credit to shareholders’ equity. The amount recognized as an expense is adjusted to reflect share options forfeited. The Company estimates the fair value of share options granted using the Black-Scholes option pricing model.

(k) Revenue recognition

The Company recognizes revenue from contracts with customers for the sale of metal concentrates at the point in time when it transfers control of the concentrates over to the customer, which occurs upon delivery, typically at a third party warehouse designated by the customer. Revenue is measured based on the market metal prices expected at time of settlement and estimates of the mineral content (by way of weights and assays), both of which are subject to adjustment until the final settlement date. At the end of each reporting period, the amounts receivable are marked to market using the most up-to-date market prices for the settlement. These variations between the sales price recorded at the initial recognition date and the actual final sales price recorded at the settlement date are caused by changes in market prices. The settlement receivable is recorded at fair value each period until final settlement occurs, with changes in fair value recorded as a component of revenue.

An adjustment is also made when the final mineral content is known, which is recognized in revenue. Revenue is also recorded net of treatment and refining charges of the counterparties under the terms of the relevant sales agreements.

(l) Reclamation and remediation provisions

The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes the cost of future reclamation and remediation as a liability when: the Company has a legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and a reasonable estimate of the obligation can be made. The liability is measured initially by discounting expected costs to the net present value using pre-tax rates and risk assumptions specific to the liability. The resulting cost is capitalized to the carrying value of the related assets, or expensed to profit or loss where there is no carrying value of the related assets. In subsequent periods, the liability is adjusted for accretion of the discount with the offsetting amount charged to the statement of comprehensive income as finance cost. Any change in the amount or timing of the underlying cash flows is adjusted to the carrying value of the liability, with the offsetting amount recorded as an adjustment to the reclamation and remediation provision cost included in mineral properties or exploration, evaluation and development expenses. Any amount charged to the carrying value of assets is depreciated over the remaining life of the relevant assets.

It is reasonably possible that the ultimate cost of remediation and reclamation could change in the future due to uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities, changes in remediation technology and changes in discount rates. The Company reviews its reclamation and remediation provision at least annually and as evidence becomes available indicating that its expected reclamation and remediation costs may have changed. Any such changes in costs could materially impact the future amounts recorded as reclamation and remediation provision.

(m) Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables, as well as derivative instruments.

(i) Classification

The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss (“FVTPL”), or fair value through other comprehensive income (loss) (“FVOCI”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

 it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

 its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

 it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

 its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

(ii) Measurement

Initial measurement

On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL	These assets are subsequently measured at fair value.  Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method.  The amortized cost is reduced by impairment losses.  Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss.  Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value.  Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.  Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value.  Interest income is calculated using the effective interest rate method, foreign exchange gains and losses and impairment are recognized in profit or loss.  Other net gains and losses are recognized in OCI.  On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVOCI, the Company applies the expected credit loss model. On adoption of the expected credit loss model there was no material adjustment.

(n) Income taxes

Income tax is recognized in net income or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized directly in equity.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date.

Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences), and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to be in effect when the temporary differences are likely to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is included in net income in the period in which the change is substantively enacted. The amount of deferred tax assets recognized is limited to the amount that is, in management’s estimation, probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset (i) when there is a legally enforceable right to set off current tax assets against current tax liabilities, (ii) when they relate to income taxes levied by the same taxation authority, and (iii) the Company intends to settle its current tax assets and liabilities on a net basis.

(o) Earnings per share

Earnings per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted earnings per share. Under this method, dilution is calculated based upon the net number of common shares issued should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price during the period. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed in a manner similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from restricted and deferred stock units and the assumed exercise of share options and warrants, if dilutive.

(p) Segment reporting

The Company has identified operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the executive management team (the chief operating decision maker – “CODM”) in assessing performance and in determining allocation of resources. The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures such as net property, plant and equipment, as well as operating results. All operating segments’ operating results are reviewed regularly by the Company’s senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The Company has determined operating segments based on this information.

Segment results that are reported to senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are comprised mainly of corporate office expenses.

(q) Accounting standards issued and adopted

IFRS 15, Revenue from Contracts with Customers

In May 2014, the IASB issued a new IFRS 15 Revenue from Contracts with Customers (“IFRS 15”), which is effective for annual periods beginning on or after January 1, 2018, with earlier application permitted. The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have been introduced, which may affect the amount or timing of revenue recognized.

The Company adopted IFRS 15 on January 1, 2018, and applied this standard using the cumulative effect method. Under this method, the cumulative effect of applying IFRS 15 was recognized as of January 1, 2018 in opening retained earnings. The comparative information was not restated and continues to be reported under the old standard, IAS 18. The Company determined that the cumulative effect of applying IFRS 15 as of January 1, 2018 was $nil, as the point in time for the initial recognition of revenue of the Company's then-effective contracts with customers remained the same upon adoption of IFRS 15. Therefore, the Company did not change the recognition of revenue for any incomplete contracts with customers outstanding as at January 1, 2018.

The Company enters into contracts with customers for the sale of metal concentrates, typically of a one year duration.

As a result of the adoption of IFRS 15, the Company has changed its accounting policy for revenue recognition, which is set out in Note 3(k).

In the comparative period prior to the adoption of IFRS 15, the Company recognized revenue from sale of concentrates when it was probable that the economic benefits associated with the transaction would flow to the Company, the risks and rewards of ownership were transferred to the customer, and the amount of revenue could be reliably measured.

The adoption of IFRS 15 did not have a material effect on the consolidated financial statements at the date of adoption.

IFRS 9, Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments (“IFRS 9”) which replaces IAS 39 Financial Instruments: Recognition and Measurement, and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. New disclosure requirements are also required. IFRS 9 is effective for annual periods beginning on or after January 1, 2018.

The Company adopted this standard effective January 1, 2018. IFRS 9 allows for an exemption from restating prior periods in respect of the standard’s classification and measurement requirements. The Company has chosen to apply this exemption upon initial adoption, although it was determined that the adoption of IFRS 9 had no impact on the comparative period’s consolidated financial statements.

Upon the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments as detailed in Note 3(m).

The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. The adoption of IFRS 9 has no quantitative impact on the Company’s financial instruments as at January 1, 2018. However, it has an impact on the classification of the Company’s financial instruments compared to the old standard IAS 39 as follows:

	Original classification	New classification
	IAS 39	IFRS 9
Financial Assets:
Cash and cash equivalents	Loans and receivables	Amortized cost
Short-term deposits	Loans and receivables	Amortized cost
Marketable securities	Available-for-sale	FVOCI
Trade accounts receivable	Loans and receivables	Amortized cost
Other receivables	Loans and receivables	Amortized cost
Loan receivable	Loans and receivables	Amortized cost
Derivative assets	FVTPL	FVTPL
Restricted cash	Loans and receivables	Amortized cost
Financial Liabilities:
Trade and other payables	Other liabilities	Amortized cost
Derivative liabilities	FVTPL	FVTPL

(r) Accounting standards issued but not yet adopted

IFRS 16, Leases

In January 2016, the IASB issued IFRS 16 Leases (“IFRS 16”), which replaces IAS 17 Leases, and is effective for annual periods beginning on or after January 1, 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees: leases of ’low-value’ assets; and short-term leases. For those assets determined to meet the definition of a lease, at the commencement date, a lessee will recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. IFRS 16 also requires lessees to make more extensive disclosures than under IAS 17.

In transitioning to IFRS 16, a lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain reliefs. The Company will apply IFRS 16 on January 1, 2019 using the modified retrospective approach, which means the cumulative impact of adoption will be recognized as at January 1, 2019 and the comparatives will not be restated. The Company will elect to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low-value.

In 2018, the Company continued to progress its detailed impact assessment and implementation project of IFRS 16. Much of 2018 was spent focusing on reviewing contracts, evaluating the accounting impacts and identifying where key policy decisions were required. Work completed by the Company to date indicates IFRS 16 is expected to have a material effect on the consolidated financial statements by increasing the Company’s recognized assets and liabilities.

Based on the Company’s current assessment of the expected impact of IFRS 16, the Company expects that the adoption will result in the recognition of additional right of use assets and lease liabilities of approximately $1,000 to $1,300. These are related to the Company’s land easement and office leases.

The Company does not expect a material impact to the Consolidated Statements of Comprehensive Income (Loss) or the Consolidated Statements of Cash Flows. However, compared with the existing accounting for operating leases, the classification of expenses and cash flows will be impacted.

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SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

12 Months Ended

Dec. 31, 2018

SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Estimates are based on historical experience and other factors considered to be reasonable, and are reviewed on an ongoing basis. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The Company has identified the following areas where significant estimates, assumptions and judgments are made and where actual results may differ from the estimates under different assumptions and conditions and may materially affect financial results of the Company reported in future periods.

(a) Resource estimation

The accuracy of resource estimates is a function of the quantity and quality of available data and assumptions made and judgments used in the geological and engineering interpretation, and may be subject to revision based on various factors. Changes in resource estimates may impact the carrying value of mineral property, plant and equipment, the calculation of amortization and depletion, the capitalization of mine development costs, and the timing of cash flows related to reclamation and remediation provision.

(b) Useful lives of mineral properties, plant and equipment

The Company's mineral properties are depleted using the straight-line method over the estimated remaining life of the mine. The Company's plant and equipment are amortized over the shorter of the estimated remaining life of the mine and the estimated remaining useful lives of the asset.

The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, mineral resource estimates, and management’s intent to operate the property. The estimated remaining life of the producing mineral property is used to calculate amortization and depletion expense, assess impairment charges and the carrying values of assets, and for forecasting the timing of the payment of reclamation and remediation costs.

There are numerous uncertainties inherent in the estimation of the remaining lives of the producing mineral properties, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, or production costs may change the economic status of the resources, estimates of production from areas not included in the National Instrument 43-101 (“NI 43-101”) reports, and management’s intent to operate the property, and may ultimately have a material impact on the estimated remaining lives of the properties.

(c) Reclamation and remediation provision

The amounts recorded for reclamation and remediation provisions are based on estimates prepared by third party environmental specialists, if available, or by persons within the Company who have the relevant skills and experience. These estimates are based on remediation activities required by environmental laws, the expected timing of cash flows, and the pre-tax risk free interest rates on which the estimated cash flows have been discounted. These estimates also include an assumption of the rate at which costs may inflate in future periods. Actual results could differ from these estimates. The estimates require extensive judgment about the nature, cost and timing of the work to be completed, and may change with future changes to costs, environmental laws and regulations and remediation practices.

(d) Review of asset carrying values and assessment of impairment

The Company reviews each asset or cash generating unit at each reporting date to determine whether there are any indicators of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating unit is measured at the higher of fair value less costs to sell and value in use.

The determination of fair value less costs of disposal and value in use requires management to make estimates and assumptions about expected production and sales volumes, metal prices, ore tonnage and grades, recoveries, operating costs, reclamation and remediation costs, future capital expenditures and appropriate discount rates for future cash flows. The estimates and assumptions are subject to risk and uncertainty, and as such there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in profit or loss.

(e) Revenue from metal concentrate sales

The Company recognizes revenue from the sale of metal concentrates when the customer obtains control of the concentrates, which occurs upon delivery at the customer's designated warehouse. The determination of the point in time in which the Company transfers control of the metal concentrates to the customers for revenue recognition requires significant judgment. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically 5 business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

(f) Income taxes and recoverability of deferred tax assets

In assessing the probability of realizing income tax assets, the Company makes estimates related to expected future taxable income, potential tax planning opportunities, estimated timing of reversals of temporary differences, and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. Where applicable tax laws and regulations are unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur which may materially affect the amounts of income tax assets recognized. In addition, future changes in tax laws could limit the Company’s ability to realize the benefits from deferred tax assets.

(g) Determination of functional currencies

The determination of an entity’s functional currency is a matter of judgment based on an assessment of the specific facts and circumstances relevant to determining the primary economic environment of each individual entity within the group. The Company reconsiders the functional currencies used when there is a change in events or conditions considered in determining the primary economic environment of each entity.

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TRADE AND OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2018

TRADE AND OTHER RECEIVABLES

5. TRADE AND OTHER RECEIVABLES

	December 31, 2018		December 31, 2017
Trade receivables	$	2,939	$	7,679
Value added tax receivable		5,473		4,998
Other		475		2,103
	$	8,887	$	14,780

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INVENTORIES

12 Months Ended

Dec. 31, 2018

INVENTORIES

6. INVENTORIES

(a) Inventories – current

	December 31, 2018		December 31, 2017
Concentrate	$	1,094	$	2,179
Ore stockpile		913		715
Materials and supplies		2,818		2,396
Silver bullion		3		4
	$	4,828	$	5,294

Inventories are recorded at net realizable value.

During the year ended December 31, 2018, the amount of inventory recognized as cost of sales was $45,921 (2017 – $41,208), which includes production costs and amortization and depletion directly attributable to the inventory production process.

(b) Inventories – non-current

Non-current inventories arise from the acquisition of Coricancha (note 9(a)) and consist of materials and supplies of $1,420 as of December 31, 2018 (December 31, 2017 – $1,580).

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LOAN RECEIVABLE

12 Months Ended

Dec. 31, 2018

Loan receivable [Abstract]

LOAN RECEIVABLE

7. Loan receivable

On December 5, 2018, the Company entered into a loan agreement (the “Loan Agreement”) pursuant to which the Company agreed to advance Beadell and its subsidiary, Beadell Brasil Ltda. (“Beadell Brasil”), as joint and several borrowers, a non-revolving term loan in the principal amount of $5,000 (the “Loan”), for their general working capital requirements. The key terms of the Loan Agreement were as follows:

 Maturity date: January 15, 2019, which could be extended by mutual agreement for an additional 30-day period as required;

 Interest rate: 14% per year until and including January 15, 2019, and 18% per year from the day after January 15, 2019 if the Loan was extended;

 Interest payment: accrues daily, payable monthly in arrears on the 1st business day of each calendar month or, if earlier, on the date of repayment in full of the Loan.

The Loan plus accrued interest was to be paid on the Maturity date. Additionally, Beadell was required to prepay any outstanding principal balance of the Loan with the full amount of any proceeds of PIS (Programas de Integração Social e de Formação do Patrimônio do Servidor Público) and COFINS (Contribuição para o Financiamento da Seguridade Social) tax refunds, immediately upon receipt of such proceeds.

Subsequent to the reporting period, the Company received partial repayment of $3,000 of the principal amount advanced and payment of accrued interest of $69. The Company also agreed to extend the maturity date of the remaining outstanding principal of $2,000 to March 18, 2019, with the same terms and conditions as the original Loan Agreement.

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MINERAL PROPERTIES, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

MINERAL PROPERTIES, PLANT AND EQUIPMENT

8. MINERAL PROPERTIES, PLANT AND EQUIPMENT

	Mineral properties			Plant and equipment			Land and buildings			Furniture, fixtures and equipment			Software		Total
Cost
Balance, January 1, 2018	$	36,083		$	34,070		$	2,460		$	2,963		$	1,628	$	77,204
Additions		–			1,514			148			407			–		2,069
Change in remediation provision		(17	)		(127	)		–			–			–		(144	)
Disposals		–			(273	)		(35	)		(11	)		–		(319	)
Balance, December 31, 2018	$	36,066		$	35,184		$	2,573		$	3,359		$	1,628	$	78,810
Accumulated depreciation
Balance, January 1, 2018	$	31,435		$	25,413		$	1,539		$	2,383		$	1,468	$	62,238
Amortization and depletion		616			2,448			114			229			52		3,459
Disposals		–			(268	)		–			(10	)		–		(278	)
Balance, December 31, 2018	$	32,051		$	27,593		$	1,653		$	2,602		$	1,520	$	65,419
Carrying value, December 31, 2018	$	4,015		$	7,591		$	920		$	757		$	108	$	13,391
Cost
Balance, January 1, 2017	$	35,909		$	30,157		$	2,333		$	2,670		$	1,478	$	72,547
Additions		–			4,003			127			291			150		4,571
Change in remediation provision		174			(82	)		–			–			–		92
Disposals		–			(8	)		–			(3	)		–		(11	)
Foreign exchange		–			–			–			5			–		5
Balance, December 31, 2017	$	36,083		$	34,070		$	2,460		$	2,963		$	1,628	$	77,204
Accumulated depreciation
Balance, January 1, 2017	$	30,893		$	22,445		$	1,424		$	2,211		$	1,456	$	58,429
Amortization and depletion		542			2,975			115			173			12		3,817
Disposals		–			(7	)		–			(4	)		–		(11	)
Foreign exchange		–			–			–			3			–		3
Balance, December 31, 2017	$	31,435		$	25,413		$	1,539		$	2,383		$	1,468	$	62,238
Carrying value, December 31, 2017	$	4,648		$	8,657		$	921		$	580		$	160	$	14,966

(a) Changes in estimate

(i)  Updated mineral resource estimate for 2017

On February 21, 2017, the Company provided an update on the Mineral Resource for the GMC, following which management reviewed the remaining useful life of the GMC, effective August 31, 2016. The estimate of the useful life of the GMC remained unchanged from the previous estimate.

(ii) Updated mineral resource estimate for 2018 

On January 25, 2018, the Company provided an update on the Mineral Resource for the GMC, effective August 31, 2017, following which management reviewed the remaining useful life of the GMC. The estimate of the useful life of the GMC was determined to be 4.3 years (an increase from the previous estimate of 1.3 years) as at October 1, 2017. As a result, the depreciation recorded during the year ended December 31, 2017 was approximately $284 less than would have been recorded prior to the change in estimate.

(iii)  Updated mineral resource estimate for 2019 

On January 29, 2019, the Company provided an update on the Mineral Resource for Topia, effective July 31, 2018, following which management reviewed the remaining useful life of Topia. The estimate of the useful life of Topia was determined to be 5.3  years (a decrease from the previous estimate of 7.8  years) as at October 1, 2018. As a result, the depreciation recorded during the year ended December 31, 2018 was approximately $230 more than would have been recorded prior to the change in estimate.

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EXPLORATION AND EVALUATION ASSETS

12 Months Ended

Dec. 31, 2018

EXPLORATION AND EVALUATION ASSETS

9. EXPLORATION AND EVALUATION ASSETS

	Santa Rosa Property		El Horcón Property		Coricancha			Total
Balance, January 1, 2017	$	988	$	1,124	$	–		$	2,112
Acquisition costs (note 9(a))		–		–		13,623			13,623
Costs incurred subsequent to acquisition		–		–		31			31
Change in reclamation and remediation provision		–		–		(133	)		(133	)
Balance, December 31, 2017	$	988	$	1,124	$	13,521		$	15,633
Change in reclamation and remediation provision		–		–		(568	)		(568	)
Balance, December 31, 2018	$	988	$	1,124	$	12,953		$	15,065

(a) Acquisition of Coricancha Mine Complex

On June 30, 2017, the Company acquired 100% of the outstanding common shares (the "Acquisition") of the Nyrstar subsidiary which owned Coricancha. Under the terms of the share purchase agreement, the purchase price comprised (i) $100 payable upon closing, and (ii) earn-out consideration of up to $10,000. Under the earn-out, Nyrstar may receive 15% of the free cash flow generated by Coricancha during the five-year period after which the mine is cumulative free cash flow positive from June 30, 2017. The Company attributed a fair value of nil to the contingent consideration, as it is not considered to be reliably determinable.

Pursuant to the Acquisition, Nyrstar agreed to:

(i) Maintain a remediation bond (in the amount of $9,737) for Coricancha until at least June 30, 2020. Should the Company make a decision to permanently close Coricancha prior to June 30, 2020, the bond will be used to pay for remediation costs and obligations. If the Company has not made a decision to permanently close Coricancha by June 30, 2020, the Company will assume the obligation to maintain the required bond, and shall release Nyrstar from these obligations;

(ii) Pay for the cost of movement and reclamation of certain legacy tailings facilities (the “Legacy Tailings”) should the regulatory authorities require these to be moved, up to a maximum of $20,000; and,

(iii) Satisfy on a timely basis all fines or sanctions that arise before or after closing resulting from activities or ownership of Coricancha for the period prior to June 30, 2017, up to a maximum of $4,000.

The Company recognized a reclamation and remediation provision of $23,767, including $9,502 related to the Legacy Tailings. At the Acquisition date, the Company estimated that approximately $4,757 of the cost associated with the Legacy Tailings would be incurred within twelve months and presented this amount as a current liability. At the Acquisition Date, the present value of the reclamation and remediation obligations was based on the following estimates (estimated total cash flows ‒ $34,659; expected settlement ‒ years 2017 to 2047; weighted average risk-free rate ‒ 5.36%)

At the Acquisition date, the Company recorded reimbursement rights totaling $11,168, in respect of:

 the reclamation of the Legacy Tailings in the amount of $9,502, as Nyrstar has indemnified the Company for the cost associated with this reclamation work of up to $20,000, see (ii) above,

 provisions recognized by Coricancha in regard to fines and sanction in the amount of $1,666, as Nyrstar has indemnified the Company for the cost associated with fees and sanctions of up to $4,000, see (iii) above.

The Acquisition was accounted for as an asset purchase, as it did not meet the definition of a business under IFRS 3 Business Combinations.

As of the date of the Acquisition, the Company incurred consideration and recognized its interest in exploration and evaluation assets and net working capital of Coricancha as follows:

Consideration:
Cash consideration payable	$	100
Professional and other fees incurred		76
Consideration	$	176
Net assets purchased:
Cash	$	105
Trade and other receivables		24
Other current assets		10
Inventories (note 6(b))		1,622
Reimbursement rights		11,168
Exploration and evaluation assets		13,623
Trade and other accounts payables		(2,609	)
Reclamation and remediation provision – current		(4,757	)
Reclamation and remediation provision – non-current		(19,010	)
Net assets purchased:	$	176

Under the terms of the Acquisition, the Company was required to fund an environmental bond related to the Coricancha remediation plan in the amount of $1,234. This guarantee was funded by the Company during the fourth quarter of 2017 and is presented as restricted cash on the Statement of Financial Position.

Restricted cash	December 31, 2018		December 31, 2017
Funding of a reclamation bond in respect of Coricancha	$	1,237	$	1,234

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REIMBURSEMENT RIGHTS

12 Months Ended

Dec. 31, 2018

REIMBURSEMENT RIGHTS

10. REIMBURSEMENT RIGHTS

	December 31, 2018			December 31, 2017
Legacy tailings reclamation and remediation	$	8,943		$	8,904
Legal claims		1,528			1,507
Fines and sanctions		384			623
		10,855			11,034
Less: current portion		(6,385	)		(4,446	)
Reimbursement rights – non-current portion	$	4,470		$	6,588

As described in note 9(a) above, pursuant to the acquisition of Coricancha, Nyrstar agreed to:

 pay for the cost of movement and reclamation of certain legacy tailings facilities (the “Legacy Tailings”) should the regulatory authorities require these to be moved, up to a maximum of $20,000; and,

 pay for all fines or sanctions that arise before or after closing resulting from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4,000.

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TRADE PAYABLES AND ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2018

TRADE PAYABLES AND ACCRUED LIABILITIES

11. TRADE PAYABLES AND ACCRUED LIABILITIES

	December 31, 2018		December 31, 2017
Trade payables	$	6,259	$	6,243
Accrued liabilities		2,774		2,919
Taxes payable		240		1,025
Other payables		1,374		1,126
	$	10,647	$	11,313

Accrued liabilities includes Coricancha-related claims payable of $1,912 (December 31, 2017 ‒ $2,130), which are recoverable from Nyrstar and are included in the reimbursement right asset (note 10). While the precise timing of settlement is uncertain, such amounts are presented as current liabilities because settlement could be within twelve months of the reporting date.

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DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2018

DERIVATIVE INSTRUMENTS

12. DERIVATIVE INSTRUMENTS

A significant portion of the Company’s capital, exploration, operating and administrative expenditures are incurred in Mexican pesos (“MXN”), while revenues from the sale of concentrates are denominated in US dollars (“USD”). The fluctuation of the USD in relation to the MXN, consequently, impacts the reported financial performance of the Company. To manage the Company’s exposure to changes in the USD/MXN exchange rate, the Company entered into forward contracts to purchase MXN in exchange for USD at various rates and maturity dates.

As at December 31, 2018, forward contracts for the purchase of MXN 345 million (December 31, 2017 – MXN 110 million), in exchange for USD at various pre-determined rates ranging from MXN 20.35/USD to MXN 21.17/USD, at various maturity dates until June 4, 2019, were outstanding. The fair value of these outstanding foreign currency forward contracts resulted in an asset of $738 at December 31, 2018 (December 31, 2017 – liability of $85).

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RECLAMATION AND REMEDIATION PROVISION

12 Months Ended

Dec. 31, 2018

RECLAMATION AND REMEDIATION PROVISION

13. RECLAMATION AND REMEDIATION PROVISION

The Company’s reclamation and remediation provision relates to site restoration, clean-up, ongoing treatment, and monitoring at the GMC and Topia mines in Mexico, and the Coricancha project in Peru.

	December 31, 2018						December 31, 2017
	Total		Current		Non-current		Total		Current		Non-current
GMC	$	1,986	$	–	$	1,986	$	2,258	$	–	$	2,258
Topia		1,514		–		1,514		1,486		–		1,486
Coricancha		23,920		4,473		19,447		23,667		4,446		19,221
	$	27,420	$	4,473	$	22,947	$	27,411	$	4,446	$	22,965

	2018			2017
Balance, January 1	$	27,411		$	3,466
Coricancha acquisition (note 9(a))		–			23,767
Change in estimates		(888	)		(16	)
Accretion		897			791
Reclamation work performed		–			(597	)
Reclamation and remediation provision, December 31	$	27,420		$	27,411

In 2018, a decrease to the total change in estimate of $214 (2017 – increase of $24) associated with the GMC was expensed to exploration, evaluation and development expenses.

The reclamation and remediation provision for the GMC and Topia operations is based on the following assumptions:

	2018			2017
Total estimated cash flows	$	3,684		$	3,938
Expected settlement of obligations (years)		2021 – 2044			2023 – 2047
Weighted average risk-free rate (discount rate)
GMC		2.7	%		2.3	%
Topia		2.8	%		2.5	%

A 1% change in the discount rate while holding the other assumptions constant would decrease or increase the provision by $370.

The reclamation and remediation provision for Coricancha is based on the following assumptions:

	2018			2017
Total estimated cash flows	$	33,941		$	34,061
Expected settlement of obligations (years)		2019 – 2047			2018 – 2047
Weighted average risk-free rate (discount rate)		5.4	%		4.8	%

A 1% change in the discount rate would decrease or increase the provision by $1,159 while holding the other assumptions constant.

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SHARE CAPITAL

12 Months Ended

Dec. 31, 2018

SHARE CAPITAL

14. SHARE CAPITAL

(a) Authorized share capital

The Company has an unlimited number of common shares without par value authorized for issue. The Company has an unlimited number of Class A and Class B preferred shares without par value authorized for issue. Each class can be issuable in series. No preferred shares have ever been issued.

(b) Share options

In June 2017, upon approval by shareholders, the Company adopted an Omnibus Incentive Plan (the “Omnibus Plan”) to supplement and eventually replace the then-existing stock option plan (the "2016 Plan"). Pursuant to the Omnibus Plan, the Company may grant stock options (“Options”), restricted share units (“RSUs”), performance based restricted share units (“PSUs”), and deferred share units (“DSUs”) to eligible employees, officers, directors, or consultants. The maximum number of common shares that the Company may issue is limited to 10% of the outstanding common shares, less the number of stock options already outstanding pursuant to the 2016 Plan and the Omnibus Plan, less twice the number of common shares counted as RSU, PSU, and DSU awards. There are additional limits with respect to insiders, individual grants, annual grants, and the number of which may be awarded to non-executive directors.

Options granted under the 2016 Plan will remain outstanding and be governed by the terms of the 2016 Plan. Options granted after the adoption of the Omnibus Plan will be governed by the Omnibus Plan.

Pursuant to the Omnibus Plan, options are non-transferable. The exercise price of options shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than 10 years after the date of grant and will cease to be exercisable three months following the termination of the participant’s employment or engagement.

Pursuant to the 2016 Plan, options are non-transferable, subject to permitted transferees, and the aggregate may not exceed 10% of the outstanding shares at the time of an option grant and the aggregate to any one person may not exceed 5% of the outstanding shares. The exercise price of options is determined by the Board of Directors but shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than 5 years after the date of grant and cease to be exercisable 90 days following the termination of the participant’s employment or engagement.

	2018					2017
	Options (000’s)			Weighted average exercise price		Options (000’s)			Weighted average exercise price
Outstanding, beginning of year		8,237		C$	1.22		9,049		C$	1.18
Granted		1,810			1.59		1,101			1.63
Forfeited/Expired		(1,134	)		1.71		(468	)		1.71
Exercised		(591	)		0.76		(1,445	)		1.08
Outstanding, end of year		8,322		C$	1.27		8,237		C$	1.22
Exercisable, end of year		6,461		C$	1.15		5,448		C$	1.08

Exercise price	Options outstanding (000’s)		Weighted average remaining contractual life (years)		Options exercisable (000’s)
C$0.65		1,897		1.43		1,897
C$0.71		1,376		1.95		1,376
C$0.86		250		0.84		250
C$1.31		1,153		0.49		1,153
C$1.57		336		4.09		121
C$1.60		1,262		4.45		200
C$1.63		684		3.44		363
C$2.00		8		0.05		8
C$2.16		435		2.99		310
C$2.19		917		2.44		783
		8,318		2.29		6,461

During the year ended December 31, 2018, the Company recorded share-based compensation expense relating to share options of $611 (2017 – $1,124).

The weighted average fair value of options granted during the year ended December 31, 2018 was C$0.66 (2017 – C$0.69). The fair value of options granted was determined using the following weighted average assumptions at the time of the grant using the Black Scholes option pricing model:

	2018			2017
Risk-free interest rate		1.95	%		0.79	%
Expected life (years)		2.89			2.63
Annualized volatility		62	%		68	%
Forfeiture rate		14	%		13	%

The annualized volatility assumption is based on the historical and implied volatility of the Company’s common share price. The risk-free interest rate assumption is based on yield curves on government bonds with a remaining term equal to the expected life of the options.

(c) Restricted share units ("RSUs") and deferred share units ("DSUs")

DSUs are awards to participants for office, directorship, or employment, which settle upon termination of service of the participant. Vesting conditions for DSUs are set by the Board. Upon settlement, DSUs entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. The choice of settlement method is at the Company's sole discretion. Timing of settlement after vesting occurs at the discretion of the participant, and can be any time between the date of termination of service of the participant and December 15th of the following calendar year. The DSUs granted to date have vested immediately.

RSUs are awards for service which upon vesting and settlement entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. Vesting conditions for RSUs are set by the Board but cannot exceed three years. The choice of settlement method is at the Company's sole discretion. The RSUs granted to date vest in several tranches over three years. An estimated forfeiture rate of 15% was used in the determination of fair value for the purposes of computing share based compensation expense in the consolidated financial statements.

PSUs are a subset of RSUs, but PSUs have one or more performance conditions. PSUs may only be settled through the issuance of common shares. No PSUs have been granted to date.

The fair values of the DSUs and RSUs granted to employees and directors have been estimated by reference to the fair value on the grant date of the equity instruments granted. The Company has no history of paying dividends, and consequently, no amounts in respect of dividends were included in the estimates of fair value of the equity instruments granted.

The following table summarizes information about the DSUs outstanding at December 31, 2018 and 2017:

	2018					2017
	Number of units			Weighted average grant date fair value (C$/unit)		Number of units		Weighted average grant date fair value (C$/unit)
Balance at January 1		89,200		C$	1.59		–	C$	–
Granted		183,000			1.59		89,200		1.59
Settled		(20,800	)		1.62		–		–
Outstanding at December 31		251,400		C$	1.59		89,200	C$	1.59

The following table summarizes information about the RSUs outstanding at December 31, 2018 and 2017:

	2018					2017
	Number of units			Weighted average grant date fair value (C$/unit)		Number of units			Weighted average grant date fair value (C$/unit)
Balance at January 1		476,600		C$	1.61		–		C$	–
Granted		585,200			1.59		483,000			1.61
Settled		(170,799	)		1.61		–			–
Cancelled		(157,334	)		1.61		(6,400	)		1.65
Outstanding at December 31		733,667		C$	1.59		476,600		C$	1.61

During the year ended December 31, 2018, the Company recorded share-based compensation expense relating to RSUs and DSUs of $710 (2017 – $289).

(d) Share purchase warrants

As part of the Company’s July 2016 financing, the Company issued 9,343,750 share purchase warrants. Each warrant entitled the holder thereof to purchase one common share at a price of $2.25 per share until January 12, 2018. The fair value per share purchase warrant was determined to be $0.43, using the following weighted average assumptions at the time of the issuance using the Black Scholes option pricing model:

Share price at measurement date	C$	1.47
Risk-free interest rate		0.69	%
Expected life (years)		1.5
Annualized volatility		88	%

All share purchase warrants expired unexercised on January 12, 2018 (December 31, 2017 – 9,343,750 outstanding).

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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2018

EARNINGS PER SHARE

15. EARNINGS PER SHARE

	2018			2017
Income (loss) attributable to equity owners	$	(10,063	)	$	1,290
Weighted average number of shares (000's)		168,888			167,966
Earnings (loss) per share ‒ basic	$	(0.06	)	$	0.01

	2018			2017
Adjusted income (loss) attributable to equity owners	$	(10,063	)	$	1,290
Weighted average number of shares (000's)		168,888			167,966
Incremental shares from options		–			3,066
Incremental shares from warrants		–			–
Incremental shares from RSUs and DSUs		–			275
Weighted average diluted number of shares (000's)		168,888			171,307
Earnings (loss) per share ‒ diluted	$	(0.06	)	$	0.01

Anti-dilutive share purchase options have not been included in the diluted earnings per share calculation.

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REVENUE

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements [Abstract]

REVENUE

16. Revenue

The initial application of IFRS 15 on the Company’s revenue from contracts with customers is described in Note 3(q). The effect was determined to be $nil as of January 1, 2018.

The Company recognizes revenue from the sale of metal concentrates when the customer obtains control of the concentrates, which occurs upon delivery at the customer's designated warehouse. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically 5 business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

	2018			2017
Silver	$	28,344		$	33,181
Gold		24,962			27,485
Lead		3,982			2,690
Zinc		4,605			3,798
Smelting and refining charges		(2,186	)		(4,180	)
Revenue from contracts with customers	$	59,707		$	62,974
Changes in fair value from provisional pricing		(273	)		772
Total revenue	$	59,434		$	63,746

The amount of revenue recognized in the year ended December 31, 2018 from performance obligations satisfied (or partially satisfied) in the previous year ended December 31, 2017, due to the current period settlement of metal concentrate revenue recognized in prior periods, was $362. At December 31, 2018, the Company had $5,860 in revenue subject to provisional pricing.

For the years ended December 31, 2018 and 2017, the Company had revenue contracts with three customers (2017 - three customers) that accounted for the majority of the total revenues as follows:

Customer	Geographical Market	2018		2017
Customer A	Mexico (Guanajuato)	$	18,601	$	–
Customer B	Mexico (Guanajuato)		18,779		–
Customer C	Mexico (Topia)		19,780		–
Customer D	Mexico (Guanajuato)		2,065		24,805
Customer E	Mexico (Guanajuato)		190		24,433
Customer F	Mexico (Topia)		19		14,508
		$	59,434	$	63,746

The trade accounts receivable balance of $2,939 at December 31, 2018 (December 31, 2017 – $7,679) relates to Customers A, B, and C.

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INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES

17. INCOME TAXES

(a) Income tax expense

	2018			2017
Current expense:
Income tax	$	164		$	135
Special mining duty		98			1,041
Withholding tax		427			427
		689			1,603
Deferred tax expense (recovery):
Income tax		(56	)		28
Special mining duty		(357	)		(270	)
Withholding tax		376			105
		(37	)		(137	)
Income tax expense	$	652		$	1,466

The reconciliation of income taxes calculated at the Canadian statutory tax rate to the income tax expense shown in these consolidated financial statements is as follows:

	2018			2017
Net income (loss) before tax	$	(9,411	)	$	2,756
Canadian statutory income tax rate		27	%		26	%
Anticipated income tax at statutory rate	$	(2,541	)	$	717
Permanent differences		190			340
Differences between Canadian and foreign tax rates		(269	)		143
Change in estimate		194			802
Effect of changes in statutory tax rates		–			(228	)
Inflation adjustment		(141	)		(537	)
Impact of foreign exchange on local currencies		975			316
Change in deferred tax assets not recognized		1,746			(955	)
Mining taxes and duties		(156	)		778
Withholding taxes		803			532
Utilization of foreign tax credits		(149	)		(138	)
Other items		–			(304	)
Income tax expense	$	652		$	1,466
Effective tax rate		-7	%		53	%

(b) Deferred income tax assets and liabilities

The significant components of deferred tax assets and liabilities are:

	December 31, 2018			December 31, ‎         2017
Deferred income tax assets	$	126		$	70
Deferred income tax liabilities		(2,053	)		(1,677	)
Deferred special mining duty asset (liabilities)		96			(253	)
	$	(1,831	)	$	(1,860	)

The following temporary differences and tax losses give rise to deferred income tax assets and liabilities:

	December 31, 2018			December 31, 2017
Tax losses carried forward	$	1,399		$	1,855
Provision for reclamation and remediation		262			281
Withholding tax liability		(2,053	)		(1,677	)
Property, plant and equipment		(1,754	)		(2,576	)
Prepaid expenses		(28	)		(18	)
Other deductible temporary differences		343			275
Net deferred income tax liabilities	$	(1,831	)	$	(1,860	)

Losses expire as follows:

		2018			2017
Type of losses	Country	Expiry dates	Amount		Expiry dates	Amount
Non-capital losses	Canada	2026 to 2038	$	2,822	2026 to 2037	$	4,834
	Mexico	2019 to 2027	$	16,557	2018 to 2026	$	10,225
	Peru	indefinite	$	66,462	indefinite	$	65,031
Capital losses	Canada	indefinite	$	1,196	indefinite	$	1,196

(i) Unrecognized deferred tax assets:

The Company recognizes tax benefits on losses or other deductible amounts where it is probable the deferred tax assets will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax assets are recognized consist of the following amounts:

	December 31, 2018		December 31, 2017
Tax losses carried forward	$	25,305	$	15,643
Property, plant and equipment		8,919		4,908
Other deductible temporary differences		42,653		40,038
Unrecognized temporary differences	$	76,877	$	60,589

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2018

FAIR VALUE MEASUREMENTS

18. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (interest rate, yield curves), or inputs that are derived principally from or corroborated observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

The following sets up the methods and assumptions used to estimate the fair value of Level 2 and Level 3 financial instruments.

Financial asset or liability	Methods and assumptions used to estimate fair value
Trade receivables	Trade receivables arising from the sales of metal concentrates are subject to provisional pricing, and the final selling price is adjusted at the end of quotational period.  We mark these to market at each reporting date based on a quoted forward price.  The Company’s trade receivables are valued using quoted market prices on the London Metal Exchange (“LME”).
Loan receivable	The Company’s loan receivable is comprised of a short-term non-revolving term (Note 7).  Due to its short-term nature, the fair value of the loan approximates its carrying value at initial recognition.
Derivative instruments	The Company's derivative assets and derivative liabilities are comprised of forward exchange contracts.  The fair value of the Company's forward exchange contracts are determined using forward exchange rates at each reporting date.

During the years ended December 31, 2018, and 2017, there were no transfers of amounts between Level 1, Level 2, and Level 3 of the fair value hierarchy. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not measured at fair value is not presented if the carrying amount is a reasonable approximation of fair value.

The Company’s financial instruments include cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables and derivative instruments. The carrying values of cash and cash equivalents, short-term deposits, trade and other receivables, loan receivable and trade and other payables approximate their fair values due to the short-term nature of the items.

In evaluating fair value information, considerable judgment is required to interpret the market data used to develop the estimates. The use of different market assumptions and valuation techniques may have a material effect on the estimated fair value amounts.

The following table summarizes the Company’s financial instruments as at December 31, 2018:

	Fair value through OCI		Fair value through P&L		Amortized cost		Total		Fair value hierarchy
Financial Assets
Cash and cash equivalents	$	–	$	–	$	24,524	$	24,524	n/a
Short-term deposits		–		–		26,057		26,057	n/a
Marketable securities		1		–		–		1	Level 1
Trade receivables		–		–		2,939		2,939	Level 2
Loan receivable		–		–		5,048		5,048	Level 2
Other receivables		–		–		475		475	n/a
Derivative assets		–		738		–		738	Level 2
Restricted cash		–		–		1,237		1,237	n/a
Financial Liabilities
Trade and other payables	$	–	$	–	$	7,633	$	7,633	n/a

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CAPITAL MANAGEMENT

12 Months Ended

Dec. 31, 2018

CAPITAL MANAGEMENT

19. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to:

 ensure there are adequate capital resources to support the Company’s ability to continue as a going concern;

 maintain adequate levels of cash to support the acquisition, exploration and development of mineral properties, exploration and evaluation assets, and the operation of producing mines;

 maintain investor, creditor and market confidence to sustain future development of the business; and

 provide returns to shareholders and benefits for other stakeholders.

In assessing the capital structure of the Company, management includes in its assessment the components of shareholders’ equity and debt, net of cash and cash equivalents and short-term deposits. The Topia Mine and the GMC mines are in production, but exploration and development activities are also performed at these and other exploration properties in order to identify further resources. Additionally, the Company is undertaking exploration and development activities at Coricancha, which has been on care and maintenance since August 2013, in order to make a decision about whether or not to bring the property into commercial production. The Company plans to use existing cash, as well as funds from future sales of concentrates to fund operations, development and exploration activities.

The Company manages its capital in a manner that provides sufficient funding for operational activities. Annual capital and operating expenditure budgets, and rolling forecasts, are used to determine the necessary capital requirements. These budgets are approved by management and the Board of Directors and updated for changes in the underlying assumptions, economic conditions and risk characteristics of the underlying assets, as necessary. The Company will continue to focus on internally generated cash flow to minimize its reliance on equity and debt financing. However, the Company may also raise cash through the offering of its share capital, in order to meet longer term objectives.

The Company’s capital structure is dependent on expected business growth and changes in the business environment. As at December 31, 2018, the Company was not subject to externally imposed capital requirements.

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FINANCIAL RISK MANAGEMENT

12 Months Ended

Dec. 31, 2018

FINANCIAL RISK MANAGEMENT

20. FINANCIAL RISK MANAGEMENT

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

The Company is exposed to certain financial risks, including credit risk, liquidity risk, and market risks such as currency risk, interest rate risk, and commodity price risk.

(a) Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's exposures to credit risk arise from our cash and short-term investments, trade accounts receivable, and loan receivable. Lesser exposures arise from our holdings of marketable securities, and from other receivables.

The risk is assessed by performing an aging analysis of our trade receivables, and through the review of credit ratings of the counterparties with which we do business.

We manage such credit risks by diversifying our bank deposits, and placing our funds only in large Canadian and Mexican financial institutions. Our investments are subject to internal investment guidelines and they mature at various dates but rarely in excess of one year.

All of our concentrate sales are to large international metals trading companies and/or smelters which have done business in Mexico for many years. The Company typically receives provisional payments, within days after delivery, of up to 95% of the value of each shipment. The Company historically has not had difficulty collecting receivables from its customers, nor have customers defaulted on any payments.

The aging of trade receivables from concentrate sales is as follows:

	December 31, 2018			December 31, 2017
0 to 30 days	$	2,572		$	4,154
31 to 60 days		455			801
61 to 90 days		(99	)		2,170
over 90 days		11			554
	$	2,939		$	7,679

The loan receivable is comprised of a loan advance to Beadell, the entity that the Company has agreed to acquire (note 7 and 21(b)), to support its general working capital requirements. The Company managed its credit risk exposure by requiring Beadell to prepay any outstanding principal balance of the loan with the full amount of any proceeds of PIS (Programas de Integração Social e de Formação do Patrimônio do Servidor Público) and COFINS (Contribuição para o Financiamento da Seguridade Social) tax refunds, immediately upon receipt of such proceeds.

There has been no notable change in the Company's approach to credit risk management since the prior year.

(b) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's exposure to liquidity risk arises from its trade and other payables. We regularly prepare rolling cash flows to identify and assess such liquidity risks.

We manage our liquidity risk by preparing annual budgets for approval by the Board and preparing cash flow and liquidity forecasts on a quarterly basis.

There has been no notable change in the Company's approach to liquidity risk management since the prior year.

(c) Currency risk

Currency risk is the risk that foreign exchange rates will fluctuate significantly from expectations. The Company's exposure to currency risk arises from its operations in Canada, Mexico and Peru, where payments to vendors and employees are often in local currency, yet substantially all of the Company's revenues are realized in US dollars. Further, the Company holds a portion of its cash in currencies other the US dollar.

To manage this risk, the Company holds as small of an amount as practical in foreign currencies. To mitigate the Company’s exposure to changes in the Mexican peso, the Company may and has entered into forward currency contracts as it deems prudent. There are limits on the extent of such contracts, in excess of which Board approval is required.

There has been no notable change in the Company's approach to foreign currency risk management since the prior year.

For financial instruments denominated in foreign currencies as at December 31, 2018, a 10% change in the prevailing exchange rates as at December 31, 2018, with all other variables held constant, would have the following impact on the Company’s earnings:

Change in net income arising from:	Canadian dollars			Mexican pesos			Peruvian soles
10% appreciation of the USD against the currency	$	(38	)	$	(2,206	)	$	214
10% depreciation of the USD against the currency	$	62		$	2,345		$	(213	)

The closing exchange rates for December 31, 2018 of MXN/USD of 19.657 (2017: 19.735), PEN/USD of 3.370 (2017: 3.244) and CAD/USD of 1.365 (2017: 1.259) were used in the above analysis.

(d) Interest rate risk

Interest rate risk is the possibility that change in market interest rates will affect future cash flows. The Company is exposed to interest rate risk on its short-term deposits and cash and cash equivalents. The Company’s approach is to invest cash in savings accounts and guaranteed investment certificates at fixed and floating rates of interest over varying maturities. We manage this risk by monitoring changes in interest rates and by maintaining a relatively short duration for the Company's portfolio of cash equivalent securities. Many of these instruments can be immediately redeemed and those of a fixed term do not exceed one year.

There has been no notable change in the Company's approach to interest rate risk management since the prior year.

For interest-bearing financial instruments as at December 31, 2018, an increase or decrease in interest rate of 1% applied would increase or decrease net income and comprehensive income by $89.

(e) Commodity price risk

The Company is subject to risk from fluctuations in the market prices of silver, gold, lead and zinc. Such fluctuations directly affect the Company's reported revenues.

The profitability of the Company’s operations is highly correlated to the market prices of these metals, as is the ability of the Company to develop its mineral properties and exploration and evaluation assets. The value of trade receivables at the reporting date also depends on changes in metal prices until finalization of sales prices per the contractual quotational period.

If metal prices decline for a prolonged period below the cost of production of the Company's mines, it may not be economically feasible to continue production.

The Company has a stated policy that it will not engage in long-term hedging of silver prices.

There has been no notable change in the Company's approach to commodity price risk management since the prior year.

For provisionally priced trade receivables, a 10% change in the prevailing commodity prices as at December 31, 2018, with all other variables held constant, would have the following impact on the Company’s earnings:

	10% change in silver		10% change in gold		10% change in lead		10% change in zinc
Change in net income	$	740	$	566	$	123	$	111

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

COMMITMENTS AND CONTINGENCIES

21. COMMITMENTS AND CONTINGENCIES

(a) Commitments

As of December 31, 2018, the Company had the following commitments:

	Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	1,124	$	275	$	550	$	299	$	–
Drilling services		146		146		–		–		–
Equipment purchases		362		362		–		–		–
Total commitments	$	1,632	$	783	$	550	$	299	$	–

(b) Pending acquisition 

On September 23, 2018, the Company announced that it had entered into an Implementation Deed with Beadell, pursuant to which it had agreed to acquire all of the issued ordinary shares of Beadell by means of a Beadell scheme of arrangement ("Scheme") under the Australian Corporations Act 2001. Upon completion of the transaction, existing Beadell and Great Panther shareholders are expected to own approximately 38% and 62%, respectively, of the combined company.

The Scheme received approval by a simple majority of the Company’s shareholders present in person or by proxy at a special meeting of shareholders on February 11, 2019, as well as by the TSX.

On February 12, 2019 the Scheme received the approval of Beadell shareholders present and voting at the meeting of Beadell shareholders, which required approval by at least 75% of the number of votes cast, and 50%. The Scheme was subsequently approved by the Australian Court on February 15, 2019.

Completion of the transaction is subject to customary conditions for a transaction of this nature and receipt of applicable regulatory, third-party and other creditor approvals and consents on terms satisfactory to the Company as may be required to effect and complete the transaction. To date, all closing conditions have been met or waived by the Company and completion is expected in early March.  

Pursuant to the Implementation Deed and Scheme:

 Beadell shareholders will receive 0.0619 of the Company’s common shares for each Beadell ordinary share held (the “Exchange Ratio”). Based on the estimated number of Beadell shares outstanding at the time the Implementation Deed was entered into, the Company expects to issue up to 105,588,208  common shares of the Company to Beadell Shareholders at the implementation of the Scheme (including up to 1,993,346 common shares to be issued as consideration for Beadell shares issuable upon exercise or exchange of outstanding Beadell Options and Beadell Performance Rights).

 Additional common shares of the Company may be issued in connection with Beadell's options and performance rights. Beadell options and performance rights must (unless the requirement is waived) have been vested and exercised in exchange for Beadell ordinary shares or have been terminated.

 Under concurrent arrangements, each Beadell warrant holder will receive a number of Company share purchase warrants equal to the number of their Beadell warrants multiplied by the Exchange Ratio at a price adjusted in accordance with the Exchange Ratio, and otherwise on the same terms and conditions as the original warrant.

(c) Contingencies 

(i) GMC

Tailings storage

In February 2016, the Mexican national water authority, Comisión Nacional del Agua ("CONAGUA"), required that the Company make formal applications for permits associated with the occupation and construction of the tailings storage facility ("TSF") at the GMC. The Company filed its applications, and the authorities conducted an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. CONAGUA responded in February 2019 requesting additional technical information. The Company is currently reviewing the request and will provide its response in due course.

Additional water use permits

Since the February 2016 correspondence with CONAGUA, the Company has also determined through its own undertakings, that additional CONAGUA permits may be needed in connection with water discharge and water use at the GMC TSF and at its San Ignacio Mine. The Company is assessing technical options and is confirming if additional water use permits are required. The Company believes that it will be able to address or mitigate the need for any necessary water discharge and use permits without any impact to its operations, but cannot provide complete assurance that there is no risk in this regard.

Amendment to Environmental Impact Statement related to expansion of existing tailings dam

In July 2017, the Company submitted to the Mexican environmental permitting authority, Secretaría del Medio Ambiente y Recursos Naturales ("SEMARNAT"), an amendment to the Environmental Impact Statement (“EIS”) requesting an expansion of the existing tailings dam, and subsequently provided further information to the SEMARNAT as requested. This is under review by the regulator, and if approved, will satisfy a requirement by CONAGUA for the processing of permits noted above.

The Company believes its current tailings footprint can be maintained and can support operations at the GMC until at least 2021. Based on its meetings and other communication with CONAGUA, the Company believes that it will be able to obtain all the above noted permits, with no suspension of operations at the GMC. However, the Company cannot assure that the tailings permits will be obtained or renewed on reasonable terms, or at all. Delays or a failure to obtain such required permits, or the issuance of permits on unfavourable terms or the expiry, revocation or failure by the Company to comply with the terms of any such permits, if obtained, could limit the ability of the Company to expand the tailings facility and could adversely affect the Company’s ability to continue operating at the GMC. In either case, the Company’s results of operations could be adversely affected.

Wastewater discharge at San Ignacio

In June 2016, the Company filed a request for authorization to discharge wastewater in San Ignacio. The authority conducted a technical visit in November 2016. In April 2018, the authority requested additional information, which the Company promptly submitted. As of the date of this document, the resolution is pending. The Company is also preparing requests for similar permits for other areas of the Company's operation.

(ii) Coricancha 

Coricancha has been on care and maintenance since August 2013 and was operated by a number of previous companies before that date. It is subject to oversight by the Organismo de Evaluación y Fiscalización Ambiental ("OEFA"), the Peruvian public agency responsible for environmental assessment and inspection, and by the Organismo Supervisor de la Inversión en Energía y Minería ("OSINERGMIN"), which is the Peruvian regulatory body with oversight responsibility over energy and mining companies.

Fines and sanctions

Nyrstar N.V. (“Nyrstar”), the previous owner of Coricancha, has agreed to reimburse the Company for all fines or sanctions that resulted from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4,000. Accordingly, a reimbursement right in the amount of $1,528 has been recorded in respect of the following fines or sanctions:

 $1,351 for fines and sanctions which may be levied by OSINERGMIN. In addition, there are open administrative and judicial proceedings by OSINERGMIN, the outcomes of which are not yet readily determinable.

 $177 for fines and sanctions to be levied by OEFA. In addition, there are open administrative and judicial proceedings by OEFA, the outcomes of which are not yet readily determinable.

The Company has accrued for and recorded a further reimbursement right of $384 for certain civil lawsuits filed by individuals and former suppliers.

Legacy tailings facilities

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the Ministry of Energy and Mines (the “MEM”), the relevant regulatory body. In addition, as part of the purchase of Coricancha completed in June 2017, the Company has an agreement with Nyrstar for the reimbursement of the cost of these reclamation activities. The Company is seeking approval of a modification to a remediation plan from MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. Concurrently, the Company has undertaken various legal measures to protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities which may be initiated as a result of the change in timing of reclamation under the proposed plan. Although the Company has all necessary permits to restart Coricancha, if this matter is not resolved favourably, it may impact the Company’s stated plans and objectives for Coricancha.

(iii) Topia

Reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF, have led to a broader review by the Mexican environmental compliance authority, the Procuraduría Federal de Protección al Ambiente ("PROFEPA"), and by the Company of all of Topia operations’ permitting status and environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, the Topia Mine has been accepted into a voluntary environmental audit program supported by PROFEPA. The audit commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings and has until January 2020 to complete this. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates will be submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program further reviews will not lead to future suspensions of operations.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2018

RELATED PARTY TRANSACTIONS

22. RELATED PARTY TRANSACTIONS

The Company's related parties include:

Related party	Nature of the relationship
Key management personnel	Officers and directors of the Company
Platoro Resource Corp. (“Platoro”)	Platoro is a private company controlled by a director of the Company. Platoro provided geological and investor relations services to the Company. These transactions occurred in the normal course of business, and were conducted on terms substantially similar to arm’s length transactions.

(a) Services

The Company entered into the following related party transactions:

	2018		2017
Consulting services provided by Platoro	$	22	$	11

(b) Key management compensation

Key management personnel includes the Company’s Directors, President and Chief Executive Officer, Chief Financial Officer, and vice presidents. The amounts owing to key management personnel are included in trade and other payables. The Company is committed to making severance payments amounting to approximately $1,800 to certain officers and management in the event of a change in control of the Company.

Compensation to key management personnel consisted of the following:

	2018		2017
Salaries and benefits	$	1,894	$	2,514
Directors’ fees		417		320
Share-based compensation		1,033		889
	$	3,344	$	3,723

Directors fees for the year ended December 31, 2018 include $77 for special committee fees (2017 – $23).

(c) Balances outstanding at the Reporting Date:

	December 31, 2018		December 31, 2017
Payable to Platoro	$	–	$	11

These amounts owing were included in trade payables.

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SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2018

SUPPLEMENTAL CASH FLOW INFORMATION

23. SUPPLEMENTAL CASH FLOW INFORMATION

Other non-cash items are comprised of the following:

	2018			2017
Accretion	$	897		$	791
Change in reclamation and remediation provision		(214	)		24
Interest income		(1,518	)		(808	)
Interest expense		20			171
Loss (gain) on disposal of fixed assets		41			(217	)
	$	(774	)	$	(39	)

The non-cash investing and financing activities of the Company include the following:

	2018			2017
Change in reclamation and remediation provision included within mineral properties and plant and equipment, exploration and evaluation assets	$	(713	)	$	40
Change in trade payables related to mineral properties, plant and equipment		–			96
	$	(713	)	$	136

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OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2018

OPERATING SEGMENTS

24. OPERATING SEGMENTS

The Company’s operations are all within the mining sector, consisting of two operating segments both of which are located in Mexico, plus one segment associated with Coricancha, one Exploration segment and one Corporate segment. Due to diversities in geography and production processes, the Company operates the GMC and the Topia Mine separately, with separate budgeting and evaluation of results of operations and exploration activities. The Coricancha segment contains the net assets associated with Coricancha and the cost of its exploration, evaluation and development activities are separately budgeted and reported. The Corporate segment provides financial, human resources and technical support to the two mining operations and Coricancha. The GMC operation produces silver and gold in concentrate, and the Topia operation produces silver, gold, lead and zinc in concentrate, for refining off site. The Exploration segment includes the Company’s exploration and evaluation assets at Santa Rosa, El Horcón, Plomo and Argosy.

	Operations
	GMC		Topia		Coricancha			Exploration			Corporate			Total
2018
Revenue	$	39,635	$	19,799	$	–		$	–		$	–		$	59,434
Exploration and evaluation expenses		1,456		298		7,101			243			2,231			11,329
Income (loss) before income taxes		1,028		3,922		(7,103	)		(3,032	)		(4,226	)		(9,411	)
Net income (loss)		1,120		3,981		(7,103	)		(3,032	)		(5,029	)		(10,063	)
Additions to non-current assets		959		773		(536	)		–			–			1,196
As at December 31, 2018
Total assets	$	7,990	$	12,813	$	27,538		$	2,427		$	62,008		$	112,776
Total liabilities	$	5,995	$	2,395	$	27,278		$	–		$	4,452		$	40,120
2017
Revenue	$	49,366	$	14,380	$	–		$	–		$	–		$	63,746
Exploration and evaluation expenses		2,606		528		2,875			407			1,059			7,475
Income (loss) before income taxes		10,865		1,843		(2,260	)		(1,491	)		(6,201	)		2,756
Net income (loss)		9,997		1,777		(2,260	)		(1,491	)		(6,733	)		1,290
Additions to non-current assets		2,122		2,307		15,194			–			–			19,623
As at December 31, 2017
Total assets	$	13,887	$	14,102	$	30,050		$	2,568		$	61,273		$	121,880
Total liabilities	$	5,867	$	2,260	$	27,189		$	54		$	5,369		$	40,739

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

Basis of consolidation

(a) Basis of consolidation

These consolidated financial statements include the accounts of the Company. All material intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation.

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and has the ability to affect those returns through its power over the investee.

Great Panther Silver Limited is the ultimate parent entity of the group. At December 31, 2018, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

Name	Location	Ownership	Principal Activity
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Metálicos de Durango S.A. de C.V.	Mexico	100%	Mining services company
Minera de Villa Seca S.A. de C.V.	Mexico	100%	Mining services company
Coboro Minerales de México S.A. de C.V.	Mexico	100%	Exploration company
Great Panther Coricancha S.A.	Peru	100%	Exploration company
Great Panther Silver Peru S.A.C.	Peru	100%	Exploration company
Cangold Peru S.A.C.	Peru	100%	Exploration company
Great Panther Finance Canada Limited	Canada	100%	Financing company
Cangold Limited	Canada	100%	Exploration company
GP Finance International S.a.r.l.	Luxembourg	100%	Financing company

Basis of measurement

(b) Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis except for the following items in the statement of financial position:

 Derivative financial instruments are measured at fair value;

 Financial instruments at fair value through profit or loss are measured at fair value; and

 Financial assets at fair value through other comprehensive income are measured at fair value.

Foreign currency translation

(c) Foreign currency translation

These consolidated financial statements are presented in US dollars which is the Canadian parent company’s presentation currency and functional currency. The functional currency of eight of the Company’s subsidiaries is also the US dollars. The functional currency of two of the Company’s Mexican subsidiaries is the Mexican peso.

(i) Transactions and balances

Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in net income.

(ii) Translation of subsidiary results into the presentation currency

The operating results and statements of financial position of the Company’s subsidiaries which have a functional currency that differs from the Company’s presentation currency are translated into the presentation currency as follows:

 Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;

 Income and expenses for each statement of comprehensive income are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and

 All resulting exchange differences are recognized as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are recognized in net income as part of the gain or loss on sale.

Cash and cash equivalents

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of 90 days or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Transaction costs are expensed when incurred. Cash and cash equivalents are designated as financial assets at amortized cost.

Inventories

(e) Inventories

Inventories consist of:

 Ore stockpiles and concentrate inventories which are stated at the lower of weighted average cost and net realizable value. Costs include production costs and amortization and depletion directly attributable to the inventory production process. Net realizable value is the expected selling price for the finished product less the costs to put the product into saleable form and delivery to the selling location.

 Materials and supplies inventory, which includes the cost of consumables used in operations are stated at the lower of weighted average cost and replacement cost which approximates net realizable value. Major spare parts and standby equipment are included in property, plant, and equipment when they are expected to be used over more than one period, if they can only be used in connection with an item of property, plant and equipment.

 Silver bullion coins and bars are recorded at lower of cost and net realizable value.

Mineral properties, plant and equipment

(f) Mineral properties, plant and equipment

(i) Mineral properties

Mine development costs are capitalized if management determines that there is sufficient evidence to support probability of generating positive economic returns in the future. A mineral resource is considered to have economic potential when the technical feasibility and commercial viability of extraction of the mineral resource is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management determines whether the following conditions have been met: there is a probable future benefit that will contribute to future cash inflows; the Company can obtain the benefit and control access to it; and the transaction or event giving rise to the benefit has already occurred.

In the event that the Company does not have sufficient evidence to support the probability of generating positive economic returns in the future, mine development costs are expensed to profit or loss. The Company expenses mine development costs for the San Ignacio Mine. In September 2015, the Company commenced expensing mine development costs for the Guanajuato Mine when the published Measured and Indicated Resources for the Guanajuato Mine represented less than twelve months of remaining production. Mine development costs incurred at the GMC includes expenditures associated with accessing mineral resources and gaining further information regarding the ore body, whether by means of ramp development, drilling or sampling.

Producing mineral properties acquired through business acquisitions are recognized at fair value on the acquisition date. Where applicable, the estimated cost of mine reclamation and remediation for the property is included in the cost of mineral properties.

(ii) Plant and equipment

Plant and equipment is originally recorded at cost at the time of construction, purchase, or acquisition, and is subsequently measured at cost less accumulated amortization and impairment. Cost includes all costs required to bring the plant and equipment into a condition and location where it is capable of operating according to its intended use.

Costs incurred for major overhaul of existing equipment or infrastructure are capitalized as plant and equipment and are subject to amortization once they are commissioned. Costs associated with routine maintenance and repairs are charged to operations as incurred.

(iii) Amortization and depletion

Plant and equipment is amortized using the straight-line method over the shorter of the estimated remaining life of the mine and the estimated remaining useful life of the asset. All other equipment, buildings and furniture and fixtures which do not relate directly to the mining operations are amortized over the useful life of the asset. Land is not amortized.

The following amortization rates are used by the Company for plant, equipment, buildings and furniture and fixtures which do not relate specifically to mining activities:

Computers	straight line over estimated useful life of 3 years
Furniture	straight line over estimated useful life of 5 years
Office	straight line over estimated useful life of 5 years
Software	straight line over estimated useful life of 3 years
Leasehold improvements	straight line over term of the lease

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in profit or loss.

Exploration and evaluation assets

(g) Exploration and evaluation assets

(i) Exploration properties

Exploration properties represent properties for which the Company has not yet performed sufficient exploration work to determine whether significant mineralization exists. Exploration properties are carried at the cost of acquisition and included in exploration and evaluation assets. Exploration expenditures incurred on such properties are expensed as incurred as exploration expenditures in profit or loss. Examples of exploration expenditures that are expensed under this policy include topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; and sampling. The Company considers its Coricancha, Santa Rosa, El Horcón, Plomo and Argosy projects to be in this category as at December 31, 2018, and consequently, expenses all costs associated with these projects as they are incurred.

(ii) Evaluation properties

Evaluation properties represent properties for which the Company has identified a mineral resource of such quantity and grade or quality that it has reasonable prospects for economic extraction. A mineral resource is considered to have reasonable prospects for economic extraction when the Company has sufficient information to determine that extraction is viable and feasible at expected long-term metal prices. Expenditures made in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource are capitalized and included in exploration and evaluation assets. Evaluation expenditures include the costs of drilling, sampling and other costs related to defining and delineating the mineral deposit.

When the technical feasibility and commercial viability of the extraction of mineral resources associated with the Company’s evaluation properties are demonstrable and management has made a decision to proceed with development, the capitalized costs associated with evaluation assets are reclassified from exploration and evaluation assets to mineral properties. They are tested for impairment at that time.

(iii) Amortization and depletion

Exploration and evaluation assets are not subject to depletion or amortization, but rather are tested for impairment when circumstances indicate that the carrying value may not be recoverable.

Leased assets

(h) Leased assets

Leases in which the Company assumes substantially all risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value and the present value of the minimum lease payments at inception of the lease. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases are operating leases and are recognized on a straight-line basis in the Company’s statement of comprehensive income.

Impairment of non-financial assets

(i) Impairment of non-financial assets

Exploration and evaluation assets are tested for impairment when circumstances indicate that the carrying value may not be recoverable. When facts and circumstances suggest that the carrying amount of an asset exceeds its recoverable amount, the Company performs an impairment test by comparing the recoverable amount to the carrying amount of the relevant exploration and evaluation property. When the carrying value exceeds the recoverable amount of the relevant exploration and evaluation property, an impairment charge is recorded and the property is written down to its recoverable amount. In addition, exploration and evaluation assets are tested for impairment at the date they are transferred to mineral properties, plant and equipment.

The Company’s mineral properties, plant and equipment are reviewed for any indication of impairment at each financial reporting date or at any time if an indicator of impairment is considered to exist. If any such indicators exist, an estimate of the recoverable amount is undertaken, being the higher of an asset’s fair value less costs of disposal and the asset’s value in use. If the asset’s carrying amount exceeds its recoverable amount then an impairment loss is recognized in net income or loss for the period, and the carrying value of the asset on the statement of financial position is reduced to its recoverable amount. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value of mineral properties is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, discounted by an appropriate pre-tax discount rate to arrive at a net present value.

Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Value in use is determined by applying assumptions specific to the Company’s continued use which includes future development. As such, these assumptions may differ from those used in calculating fair value.

In testing for indicators of impairment and performing impairment calculations, assets are grouped into cash-generating units, which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. The estimates of future discounted cash flows are subject to risks and uncertainties including estimated production, grades, recoveries, future metals prices, discount rates, exchange rates and operating costs.

Non-financial assets other than goodwill that have suffered an impairment are evaluated for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not been recorded.

Share-based compensation

(j) Share-based compensation

Equity-settled share-based compensation arrangements such as the Company’s stock option plan, restricted share unit plan, and deferred share unit plan are measured at fair value at the date of grant and recorded within equity. The fair value at grant date of all share-based compensation is recognized as compensation expense over the vesting period, with a corresponding credit to shareholders’ equity. The amount recognized as an expense is adjusted to reflect share options forfeited. The Company estimates the fair value of share options granted using the Black-Scholes option pricing model.

Revenue recognition

(k) Revenue recognition

The Company recognizes revenue from contracts with customers for the sale of metal concentrates at the point in time when it transfers control of the concentrates over to the customer, which occurs upon delivery, typically at a third party warehouse designated by the customer. Revenue is measured based on the market metal prices expected at time of settlement and estimates of the mineral content (by way of weights and assays), both of which are subject to adjustment until the final settlement date. At the end of each reporting period, the amounts receivable are marked to market using the most up-to-date market prices for the settlement. These variations between the sales price recorded at the initial recognition date and the actual final sales price recorded at the settlement date are caused by changes in market prices. The settlement receivable is recorded at fair value each period until final settlement occurs, with changes in fair value recorded as a component of revenue.

An adjustment is also made when the final mineral content is known, which is recognized in revenue. Revenue is also recorded net of treatment and refining charges of the counterparties under the terms of the relevant sales agreements.

Reclamation and remediation provisions

(l) Reclamation and remediation provisions

The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes the cost of future reclamation and remediation as a liability when: the Company has a legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and a reasonable estimate of the obligation can be made. The liability is measured initially by discounting expected costs to the net present value using pre-tax rates and risk assumptions specific to the liability. The resulting cost is capitalized to the carrying value of the related assets, or expensed to profit or loss where there is no carrying value of the related assets. In subsequent periods, the liability is adjusted for accretion of the discount with the offsetting amount charged to the statement of comprehensive income as finance cost. Any change in the amount or timing of the underlying cash flows is adjusted to the carrying value of the liability, with the offsetting amount recorded as an adjustment to the reclamation and remediation provision cost included in mineral properties or exploration, evaluation and development expenses. Any amount charged to the carrying value of assets is depreciated over the remaining life of the relevant assets.

It is reasonably possible that the ultimate cost of remediation and reclamation could change in the future due to uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities, changes in remediation technology and changes in discount rates. The Company reviews its reclamation and remediation provision at least annually and as evidence becomes available indicating that its expected reclamation and remediation costs may have changed. Any such changes in costs could materially impact the future amounts recorded as reclamation and remediation provision.

Financial instruments

(m) Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables, as well as derivative instruments.

(i) Classification

The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss (“FVTPL”), or fair value through other comprehensive income (loss) (“FVOCI”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

 it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

 its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

 it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

 its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

(ii) Measurement

Initial measurement

On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL	These assets are subsequently measured at fair value.  Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method.  The amortized cost is reduced by impairment losses.  Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss.  Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value.  Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.  Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value.  Interest income is calculated using the effective interest rate method, foreign exchange gains and losses and impairment are recognized in profit or loss.  Other net gains and losses are recognized in OCI.  On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVOCI, the Company applies the expected credit loss model. On adoption of the expected credit loss model there was no material adjustment.

Income taxes

(n) Income taxes

Income tax is recognized in net income or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized directly in equity.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date.

Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences), and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to be in effect when the temporary differences are likely to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is included in net income in the period in which the change is substantively enacted. The amount of deferred tax assets recognized is limited to the amount that is, in management’s estimation, probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset (i) when there is a legally enforceable right to set off current tax assets against current tax liabilities, (ii) when they relate to income taxes levied by the same taxation authority, and (iii) the Company intends to settle its current tax assets and liabilities on a net basis.

Earnings per share

(o) Earnings per share

Earnings per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted earnings per share. Under this method, dilution is calculated based upon the net number of common shares issued should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price during the period. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed in a manner similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from restricted and deferred stock units and the assumed exercise of share options and warrants, if dilutive.

Segment reporting

(p) Segment reporting

The Company has identified operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the executive management team (the chief operating decision maker – “CODM”) in assessing performance and in determining allocation of resources. The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures such as net property, plant and equipment, as well as operating results. All operating segments’ operating results are reviewed regularly by the Company’s senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The Company has determined operating segments based on this information.

Segment results that are reported to senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are comprised mainly of corporate office expenses.

Accounting standards issued and adopted

(q) Accounting standards issued and adopted

IFRS 15, Revenue from Contracts with Customers

In May 2014, the IASB issued a new IFRS 15 Revenue from Contracts with Customers (“IFRS 15”), which is effective for annual periods beginning on or after January 1, 2018, with earlier application permitted. The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. New estimates and judgmental thresholds have been introduced, which may affect the amount or timing of revenue recognized.

The Company adopted IFRS 15 on January 1, 2018, and applied this standard using the cumulative effect method. Under this method, the cumulative effect of applying IFRS 15 was recognized as of January 1, 2018 in opening retained earnings. The comparative information was not restated and continues to be reported under the old standard, IAS 18. The Company determined that the cumulative effect of applying IFRS 15 as of January 1, 2018 was $nil, as the point in time for the initial recognition of revenue of the Company's then-effective contracts with customers remained the same upon adoption of IFRS 15. Therefore, the Company did not change the recognition of revenue for any incomplete contracts with customers outstanding as at January 1, 2018.

The Company enters into contracts with customers for the sale of metal concentrates, typically of a one year duration.

As a result of the adoption of IFRS 15, the Company has changed its accounting policy for revenue recognition, which is set out in Note 3(k).

In the comparative period prior to the adoption of IFRS 15, the Company recognized revenue from sale of concentrates when it was probable that the economic benefits associated with the transaction would flow to the Company, the risks and rewards of ownership were transferred to the customer, and the amount of revenue could be reliably measured.

The adoption of IFRS 15 did not have a material effect on the consolidated financial statements at the date of adoption.

IFRS 9, Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments (“IFRS 9”) which replaces IAS 39 Financial Instruments: Recognition and Measurement, and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. New disclosure requirements are also required. IFRS 9 is effective for annual periods beginning on or after January 1, 2018.

The Company adopted this standard effective January 1, 2018. IFRS 9 allows for an exemption from restating prior periods in respect of the standard’s classification and measurement requirements. The Company has chosen to apply this exemption upon initial adoption, although it was determined that the adoption of IFRS 9 had no impact on the comparative period’s consolidated financial statements.

Upon the adoption of IFRS 9, the Company has changed its accounting policy for financial instruments as detailed in Note 3(m).

The Company completed a detailed assessment of its financial assets and liabilities as at January 1, 2018. The adoption of IFRS 9 has no quantitative impact on the Company’s financial instruments as at January 1, 2018. However, it has an impact on the classification of the Company’s financial instruments compared to the old standard IAS 39 as follows:

	Original classification	New classification
	IAS 39	IFRS 9
Financial Assets:
Cash and cash equivalents	Loans and receivables	Amortized cost
Short-term deposits	Loans and receivables	Amortized cost
Marketable securities	Available-for-sale	FVOCI
Trade accounts receivable	Loans and receivables	Amortized cost
Other receivables	Loans and receivables	Amortized cost
Loan receivable	Loans and receivables	Amortized cost
Derivative assets	FVTPL	FVTPL
Restricted cash	Loans and receivables	Amortized cost
Financial Liabilities:
Trade and other payables	Other liabilities	Amortized cost
Derivative liabilities	FVTPL	FVTPL

Accounting standards issued but not yet adopted

(r) Accounting standards issued but not yet adopted

IFRS 16, Leases

In January 2016, the IASB issued IFRS 16 Leases (“IFRS 16”), which replaces IAS 17 Leases, and is effective for annual periods beginning on or after January 1, 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees: leases of ’low-value’ assets; and short-term leases. For those assets determined to meet the definition of a lease, at the commencement date, a lessee will recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. IFRS 16 also requires lessees to make more extensive disclosures than under IAS 17.

In transitioning to IFRS 16, a lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain reliefs. The Company will apply IFRS 16 on January 1, 2019 using the modified retrospective approach, which means the cumulative impact of adoption will be recognized as at January 1, 2019 and the comparatives will not be restated. The Company will elect to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low-value.

In 2018, the Company continued to progress its detailed impact assessment and implementation project of IFRS 16. Much of 2018 was spent focusing on reviewing contracts, evaluating the accounting impacts and identifying where key policy decisions were required. Work completed by the Company to date indicates IFRS 16 is expected to have a material effect on the consolidated financial statements by increasing the Company’s recognized assets and liabilities.

Based on the Company’s current assessment of the expected impact of IFRS 16, the Company expects that the adoption will result in the recognition of additional right of use assets and lease liabilities of approximately $1,000 to $1,300. These are related to the Company’s land easement and office leases.

The Company does not expect a material impact to the Consolidated Statements of Comprehensive Income (Loss) or the Consolidated Statements of Cash Flows. However, compared with the existing accounting for operating leases, the classification of expenses and cash flows will be impacted.

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of subsidiaries

Name	Location	Ownership	Principal Activity
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Metálicos de Durango S.A. de C.V.	Mexico	100%	Mining services company
Minera de Villa Seca S.A. de C.V.	Mexico	100%	Mining services company
Coboro Minerales de México S.A. de C.V.	Mexico	100%	Exploration company
Great Panther Coricancha S.A.	Peru	100%	Exploration company
Great Panther Silver Peru S.A.C.	Peru	100%	Exploration company
Cangold Peru S.A.C.	Peru	100%	Exploration company
Great Panther Finance Canada Limited	Canada	100%	Financing company
Cangold Limited	Canada	100%	Exploration company
GP Finance International S.a.r.l.	Luxembourg	100%	Financing company

Disclosure of detailed information about estimated useful life or depreciation rate

Computers	straight line over estimated useful life of 3 years
Furniture	straight line over estimated useful life of 5 years
Office	straight line over estimated useful life of 5 years
Software	straight line over estimated useful life of 3 years
Leasehold improvements	straight line over term of the lease

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TRADE AND OTHER RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about trade and other receivables

	December 31, 2018		December 31, 2017
Trade receivables	$	2,939	$	7,679
Value added tax receivable		5,473		4,998
Other		475		2,103
	$	8,887	$	14,780

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about inventories

	December 31, 2018		December 31, 2017
Concentrate	$	1,094	$	2,179
Ore stockpile		913		715
Materials and supplies		2,818		2,396
Silver bullion		3		4
	$	4,828	$	5,294

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about property, plant and equipment

	Mineral properties			Plant and equipment			Land and buildings			Furniture, fixtures and equipment			Software		Total
Cost
Balance, January 1, 2018	$	36,083		$	34,070		$	2,460		$	2,963		$	1,628	$	77,204
Additions		–			1,514			148			407			–		2,069
Change in remediation provision		(17	)		(127	)		–			–			–		(144	)
Disposals		–			(273	)		(35	)		(11	)		–		(319	)
Balance, December 31, 2018	$	36,066		$	35,184		$	2,573		$	3,359		$	1,628	$	78,810
Accumulated depreciation
Balance, January 1, 2018	$	31,435		$	25,413		$	1,539		$	2,383		$	1,468	$	62,238
Amortization and depletion		616			2,448			114			229			52		3,459
Disposals		–			(268	)		–			(10	)		–		(278	)
Balance, December 31, 2018	$	32,051		$	27,593		$	1,653		$	2,602		$	1,520	$	65,419
Carrying value, December 31, 2018	$	4,015		$	7,591		$	920		$	757		$	108	$	13,391
Cost
Balance, January 1, 2017	$	35,909		$	30,157		$	2,333		$	2,670		$	1,478	$	72,547
Additions		–			4,003			127			291			150		4,571
Change in remediation provision		174			(82	)		–			–			–		92
Disposals		–			(8	)		–			(3	)		–		(11	)
Foreign exchange		–			–			–			5			–		5
Balance, December 31, 2017	$	36,083		$	34,070		$	2,460		$	2,963		$	1,628	$	77,204
Accumulated depreciation
Balance, January 1, 2017	$	30,893		$	22,445		$	1,424		$	2,211		$	1,456	$	58,429
Amortization and depletion		542			2,975			115			173			12		3,817
Disposals		–			(7	)		–			(4	)		–		(11	)
Foreign exchange		–			–			–			3			–		3
Balance, December 31, 2017	$	31,435		$	25,413		$	1,539		$	2,383		$	1,468	$	62,238
Carrying value, December 31, 2017	$	4,648		$	8,657		$	921		$	580		$	160	$	14,966

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EXPLORATION AND EVALUATION ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about exploration and evaluation expenditure

	Santa Rosa Property		El Horcón Property		Coricancha			Total
Balance, January 1, 2017	$	988	$	1,124	$	–		$	2,112
Acquisition costs (note 9(a))		–		–		13,623			13,623
Costs incurred subsequent to acquisition		–		–		31			31
Change in reclamation and remediation provision		–		–		(133	)		(133	)
Balance, December 31, 2017	$	988	$	1,124	$	13,521		$	15,633
Change in reclamation and remediation provision		–		–		(568	)		(568	)
Balance, December 31, 2018	$	988	$	1,124	$	12,953		$	15,065

Disclosure of detailed information about business combinations

Consideration:
Cash consideration payable	$	100
Professional and other fees incurred		76
Consideration	$	176
Net assets purchased:
Cash	$	105
Trade and other receivables		24
Other current assets		10
Inventories (note 6(b))		1,622
Reimbursement rights		11,168
Exploration and evaluation assets		13,623
Trade and other accounts payables		(2,609	)
Reclamation and remediation provision – current		(4,757	)
Reclamation and remediation provision – non-current		(19,010	)
Net assets purchased:	$	176

Disclosure of restricted cash and cash equivalents

Restricted cash	December 31, 2018		December 31, 2017
Funding of a reclamation bond in respect of Coricancha	$	1,237	$	1,234

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REIMBURSEMENT RIGHTS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about reimbursement rights

	December 31, 2018			December 31, 2017
Legacy tailings reclamation and remediation	$	8,943		$	8,904
Legal claims		1,528			1,507
Fines and sanctions		384			623
		10,855			11,034
Less: current portion		(6,385	)		(4,446	)
Reimbursement rights – non-current portion	$	4,470		$	6,588

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TRADE PAYABLES AND ACCRUED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of accrued expenses and other liabilities

	December 31, 2018		December 31, 2017
Trade payables	$	6,259	$	6,243
Accrued liabilities		2,774		2,919
Taxes payable		240		1,025
Other payables		1,374		1,126
	$	10,647	$	11,313

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RECLAMATION AND REMEDIATION PROVISION (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about reclamation and remediation provision, by site

	December 31, 2018						December 31, 2017
	Total		Current		Non-current		Total		Current		Non-current
GMC	$	1,986	$	–	$	1,986	$	2,258	$	–	$	2,258
Topia		1,514		–		1,514		1,486		–		1,486
Coricancha		23,920		4,473		19,447		23,667		4,446		19,221
	$	27,420	$	4,473	$	22,947	$	27,411	$	4,446	$	22,965

Disclosure of detailed information about reclamation and remediation provision

	2018			2017
Balance, January 1	$	27,411		$	3,466
Coricancha acquisition (note 9(a))		–			23,767
Change in estimates		(888	)		(16	)
Accretion		897			791
Reclamation work performed		–			(597	)
Reclamation and remediation provision, December 31	$	27,420		$	27,411

Disclosure of detailed information about assumptions of reclamation and remediation provision

	2018			2017
Total estimated cash flows	$	3,684		$	3,938
Expected settlement of obligations (years)		2021 – 2044			2023 – 2047
Weighted average risk-free rate (discount rate)
GMC		2.7	%		2.3	%
Topia		2.8	%		2.5	%

Coricancha Mining Complex [Member]

Disclosure of detailed information about assumptions of reclamation and remediation provision

	2018			2017
Total estimated cash flows	$	33,941		$	34,061
Expected settlement of obligations (years)		2019 – 2047			2018 – 2047
Weighted average risk-free rate (discount rate)		5.4	%		4.8	%

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SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of number and weighted average exercise prices of share options

	2018					2017
	Options (000’s)			Weighted average exercise price		Options (000’s)			Weighted average exercise price
Outstanding, beginning of year		8,237		C$	1.22		9,049		C$	1.18
Granted		1,810			1.59		1,101			1.63
Forfeited/Expired		(1,134	)		1.71		(468	)		1.71
Exercised		(591	)		0.76		(1,445	)		1.08
Outstanding, end of year		8,322		C$	1.27		8,237		C$	1.22
Exercisable, end of year		6,461		C$	1.15		5,448		C$	1.08

Disclosure of range of exercise prices of outstanding share options

Exercise price	Options outstanding (000’s)		Weighted average remaining contractual life (years)		Options exercisable (000’s)
C$0.65		1,897		1.43		1,897
C$0.71		1,376		1.95		1,376
C$0.86		250		0.84		250
C$1.31		1,153		0.49		1,153
C$1.57		336		4.09		121
C$1.60		1,262		4.45		200
C$1.63		684		3.44		363
C$2.00		8		0.05		8
C$2.16		435		2.99		310
C$2.19		917		2.44		783
		8,318		2.29		6,461

Disclosure of detailed information about options, valuation assumptions

	2018			2017
Risk-free interest rate		1.95	%		0.79	%
Expected life (years)		2.89			2.63
Annualized volatility		62	%		68	%
Forfeiture rate		14	%		13	%

Disclosure of detailed information about warrants, valuation assumptions

Share price at measurement date	C$	1.47
Risk-free interest rate		0.69	%
Expected life (years)		1.5
Annualized volatility		88	%

Deferred share units [Member]

Disclosure of number and weighted average exercise prices of share options

	2018					2017
	Number of units			Weighted average grant date fair value (C$/unit)		Number of units		Weighted average grant date fair value (C$/unit)
Balance at January 1		89,200		C$	1.59		–	C$	–
Granted		183,000			1.59		89,200		1.59
Settled		(20,800	)		1.62		–		–
Outstanding at December 31		251,400		C$	1.59		89,200	C$	1.59

Restricted share units [Member]

Disclosure of number and weighted average exercise prices of share options

	2018					2017
	Number of units			Weighted average grant date fair value (C$/unit)		Number of units			Weighted average grant date fair value (C$/unit)
Balance at January 1		476,600		C$	1.61		–		C$	–
Granted		585,200			1.59		483,000			1.61
Settled		(170,799	)		1.61		–			–
Cancelled		(157,334	)		1.61		(6,400	)		1.65
Outstanding at December 31		733,667		C$	1.59		476,600		C$	1.61

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EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

Earnings per shar

	2018			2017
Income (loss) attributable to equity owners	$	(10,063	)	$	1,290
Weighted average number of shares (000's)		168,888			167,966
Earnings (loss) per share ‒ basic	$	(0.06	)	$	0.01

	2018			2017
Adjusted income (loss) attributable to equity owners	$	(10,063	)	$	1,290
Weighted average number of shares (000's)		168,888			167,966
Incremental shares from options		–			3,066
Incremental shares from warrants		–			–
Incremental shares from RSUs and DSUs		–			275
Weighted average diluted number of shares (000's)		168,888			171,307
Earnings (loss) per share ‒ diluted	$	(0.06	)	$	0.01

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REVENUE (Tables)

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements [Abstract]

Disclosure of disaggregation of revenue from contracts with customers

	2018			2017
Silver	$	28,344		$	33,181
Gold		24,962			27,485
Lead		3,982			2,690
Zinc		4,605			3,798
Smelting and refining charges		(2,186	)		(4,180	)
Revenue from contracts with customers	$	59,707		$	62,974
Changes in fair value from provisional pricing		(273	)		772
Total revenue	$	59,434		$	63,746

Schedule of Revenue by Major Customers by Reporting Segments

Customer	Geographical Market	2018		2017
Customer A	Mexico (Guanajuato)	$	18,601	$	–
Customer B	Mexico (Guanajuato)		18,779		–
Customer C	Mexico (Topia)		19,780		–
Customer D	Mexico (Guanajuato)		2,065		24,805
Customer E	Mexico (Guanajuato)		190		24,433
Customer F	Mexico (Topia)		19		14,508
		$	59,434	$	63,746

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about effective income tax expense recovery

	2018			2017
Current expense:
Income tax	$	164		$	135
Special mining duty		98			1,041
Withholding tax		427			427
		689			1,603
Deferred tax expense (recovery):
Income tax		(56	)		28
Special mining duty		(357	)		(270	)
Withholding tax		376			105
		(37	)		(137	)
Income tax expense	$	652		$	1,466

Disclosure of detailed information about reconciliation of income taxes computed as statutory tax rate

	2018			2017
Net income (loss) before tax	$	(9,411	)	$	2,756
Canadian statutory income tax rate		27	%		26	%
Anticipated income tax at statutory rate	$	(2,541	)	$	717
Permanent differences		190			340
Differences between Canadian and foreign tax rates		(269	)		143
Change in estimate		194			802
Effect of changes in statutory tax rates		–			(228	)
Inflation adjustment		(141	)		(537	)
Impact of foreign exchange on local currencies		975			316
Change in deferred tax assets not recognized		1,746			(955	)
Mining taxes and duties		(156	)		778
Withholding taxes		803			532
Utilization of foreign tax credits		(149	)		(138	)
Other items		–			(304	)
Income tax expense	$	652		$	1,466
Effective tax rate		-7	%		53	%

Disclosure of deferred taxes

	December 31, 2018			December 31, ‎         2017
Deferred income tax assets	$	126		$	70
Deferred income tax liabilities		(2,053	)		(1,677	)
Deferred special mining duty asset (liabilities)		96			(253	)
	$	(1,831	)	$	(1,860	)

Disclosure of temporary difference, unused tax losses and unused tax credits

	December 31, 2018			December 31, 2017
Tax losses carried forward	$	1,399		$	1,855
Provision for reclamation and remediation		262			281
Withholding tax liability		(2,053	)		(1,677	)
Property, plant and equipment		(1,754	)		(2,576	)
Prepaid expenses		(28	)		(18	)
Other deductible temporary differences		343			275
Net deferred income tax liabilities	$	(1,831	)	$	(1,860	)

Disclosure of unused tax losses

		2018			2017
Type of losses	Country	Expiry dates	Amount		Expiry dates	Amount
Non-capital losses	Canada	2026 to 2038	$	2,822	2026 to 2037	$	4,834
	Mexico	2019 to 2027	$	16,557	2018 to 2026	$	10,225
	Peru	indefinite	$	66,462	indefinite	$	65,031
Capital losses	Canada	indefinite	$	1,196	indefinite	$	1,196

Disclosure of detailed information about temporary differences of unrecognized deferred tax assets

	December 31, 2018		December 31, 2017
Tax losses carried forward	$	25,305	$	15,643
Property, plant and equipment		8,919		4,908
Other deductible temporary differences		42,653		40,038
Unrecognized temporary differences	$	76,877	$	60,589

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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about financial instruments

	Fair value through OCI		Fair value through P&L		Amortized cost		Total		Fair value hierarchy
Financial Assets
Cash and cash equivalents	$	–	$	–	$	24,524	$	24,524	n/a
Short-term deposits		–		–		26,057		26,057	n/a
Marketable securities		1		–		–		1	Level 1
Trade receivables		–		–		2,939		2,939	Level 2
Loan receivable		–		–		5,048		5,048	Level 2
Other receivables		–		–		475		475	n/a
Derivative assets		–		738		–		738	Level 2
Restricted cash		–		–		1,237		1,237	n/a
Financial Liabilities
Trade and other payables	$	–	$	–	$	7,633	$	7,633	n/a

XML

FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of credit risk exposure

	December 31, 2018			December 31, 2017
0 to 30 days	$	2,572		$	4,154
31 to 60 days		455			801
61 to 90 days		(99	)		2,170
over 90 days		11			554
	$	2,939		$	7,679

Disclosure of detailed information about foreign currency risk

Change in net income arising from:	Canadian dollars			Mexican pesos			Peruvian soles
10% appreciation of the USD against the currency	$	(38	)	$	(2,206	)	$	214
10% depreciation of the USD against the currency	$	62		$	2,345		$	(213	)

Disclosure of detailed information about commodity price risk

	10% change in silver		10% change in gold		10% change in lead		10% change in zinc
Change in net income	$	740	$	566	$	123	$	111

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COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of commitments

	Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	1,124	$	275	$	550	$	299	$	–
Drilling services		146		146		–		–		–
Equipment purchases		362		362		–		–		–
Total commitments	$	1,632	$	783	$	550	$	299	$	–

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RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about related party transactions

	2018		2017
Consulting services provided by Platoro	$	22	$	11

Disclosure of information about key management personnel

	2018		2017
Salaries and benefits	$	1,894	$	2,514
Directors’ fees		417		320
Share-based compensation		1,033		889
	$	3,344	$	3,723

Disclosure of balances outstanding to related parties

	December 31, 2018		December 31, 2017
Payable to Platoro	$	–	$	11

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about supplemental cash flow information

	2018			2017
Accretion	$	897		$	791
Change in reclamation and remediation provision		(214	)		24
Interest income		(1,518	)		(808	)
Interest expense		20			171
Loss (gain) on disposal of fixed assets		41			(217	)
	$	(774	)	$	(39	)

Disclosure of detailed information about non cash transactions

	2018			2017
Change in reclamation and remediation provision included within mineral properties and plant and equipment, exploration and evaluation assets	$	(713	)	$	40
Change in trade payables related to mineral properties, plant and equipment		–			96
	$	(713	)	$	136

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OPERATING SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about entity reportable segments, assets and liabilities

	Operations
	GMC		Topia		Coricancha			Exploration			Corporate			Total
2018
Revenue	$	39,635	$	19,799	$	–		$	–		$	–		$	59,434
Exploration and evaluation expenses		1,456		298		7,101			243			2,231			11,329
Income (loss) before income taxes		1,028		3,922		(7,103	)		(3,032	)		(4,226	)		(9,411	)
Net income (loss)		1,120		3,981		(7,103	)		(3,032	)		(5,029	)		(10,063	)
Additions to non-current assets		959		773		(536	)		–			–			1,196
As at December 31, 2018
Total assets	$	7,990	$	12,813	$	27,538		$	2,427		$	62,008		$	112,776
Total liabilities	$	5,995	$	2,395	$	27,278		$	–		$	4,452		$	40,120
2017
Revenue	$	49,366	$	14,380	$	–		$	–		$	–		$	63,746
Exploration and evaluation expenses		2,606		528		2,875			407			1,059			7,475
Income (loss) before income taxes		10,865		1,843		(2,260	)		(1,491	)		(6,201	)		2,756
Net income (loss)		9,997		1,777		(2,260	)		(1,491	)		(6,733	)		1,290
Additions to non-current assets		2,122		2,307		15,194			–			–			19,623
As at December 31, 2017
Total assets	$	13,887	$	14,102	$	30,050		$	2,568		$	61,273		$	121,880
Total liabilities	$	5,867	$	2,260	$	27,189		$	54		$	5,369		$	40,739

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NATURE OF OPERATIONS (Narrative) (Details)	Sep. 23, 2018
Beadell Resources Limited Member [Member]
Percentage of voting equity interests acquired	100.00%

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SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2018
Mineral Mexicana el Rosario, S.A. de C.V. [Member]
Proportion of ownership interest in subsidiary	100.00%
Metalicos de Durango, S.A. de C.V. [Member]
Proportion of ownership interest in subsidiary	100.00%
Minera de Villa Seca, S.A. de C.V. [Member]
Proportion of ownership interest in subsidiary	100.00%
Coboro Minerales de Mexico S.A. de C.V. [Member]
Proportion of ownership interest in subsidiary	100.00%
Great Panther Coricancha S.A. [Member]
Proportion of ownership interest in subsidiary	100.00%
Great Panther Silver Peru S.A.C. [Member]
Proportion of ownership interest in subsidiary	100.00%
Cangold Peru S.A.C. [Member]
Proportion of ownership interest in subsidiary	100.00%
Great Panther Finance Canada Limited [Member]
Proportion of ownership interest in subsidiary	100.00%
Cangold Limited [Member]
Proportion of ownership interest in subsidiary	100.00%
GP Finance International S.a. r.l. [Member]
Proportion of ownership interest in subsidiary	100.00%

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SIGNIFICANT ACCOUNTING POLICIES (Details 1)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Useful lives or depreciation rates, plant, equipment, buildings and furniture and fixtures which do not relate specifically to the mining development and drilling activities	The estimate of the useful life of Topia was determined to be 5.3 years (a decrease from the previous estimate of 7.8 years) as at October 1, 2018.	The estimate of the useful life of the GMC was determined to be 4.3 years (an increase from the previous estimate of 1.3 years) as at October 1, 2017.
Computer Equipment [Member]
Useful lives or depreciation rates, plant, equipment, buildings and furniture and fixtures which do not relate specifically to the mining development and drilling activities	straight line over estimated useful life of 3 years
Fixtures and fittings [member]
Useful lives or depreciation rates, plant, equipment, buildings and furniture and fixtures which do not relate specifically to the mining development and drilling activities	straight line over estimated useful life of 5 years
Office equipment [member]
Useful lives or depreciation rates, plant, equipment, buildings and furniture and fixtures which do not relate specifically to the mining development and drilling activities	straight line over estimated useful life of 5 years
Leasehold Improvements [Member]
Useful lives or depreciation rates, plant, equipment, buildings and furniture and fixtures which do not relate specifically to the mining development and drilling activities	straight line over term of the lease
Computer software [member]
Useful lives or depreciation rates, plant, equipment, buildings and furniture and fixtures which do not relate specifically to the mining development and drilling activities	straight line over estimated useful life of 3 years

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SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - Adoption Of New Accounting Policy Member [Member] $ in Thousands	Jan. 01, 2019 USD ($)
Bottom of range [member]
Additional to rightofuse assets and Lease Liabilities	$ 1,000
Top of range [member]
Additional to rightofuse assets and Lease Liabilities	$ 1,300

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TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Trade receivables	$ 2,939	$ 7,679
Value added tax receivables	5,473	4,998
Other	475	2,103
Trade and other receivables	$ 8,887	$ 14,780

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INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Concentrate	$ 1,094	$ 2,179
Ore stockpile	913	715
Materials and supplies	2,818	2,396
Silver bullion	3	4
Total Inventories	$ 4,828	$ 5,294

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INVENTORIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Inventory recognized as cost of sales	$ 45,921	$ 41,208
Inventories non-current	$ 1,420	$ 1,580

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LOAN RECEIVABLE (Narrative) (Details) $ in Thousands		1 Months Ended
	Dec. 05, 2018 USD ($)	Jan. 31, 2019 USD ($)	Jan. 15, 2019
Cash receipts from repayment of advances and loans made to other parties, classified as investing activities	$ 5,000	$ 3,000
Payment of Term loan Remaining Outstanding Principal Amount		2,000
Beadell Brasil Ltd [Member]
Finance Receivable Maturity Date	Jan. 15, 2019
Finance Receivable Grace Period	30 days
Fiance Receivable Percentage Bearing Fixed InterestRate	14		18
Payment of Accrued Interest		$ 69

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, plant and equipment at beginning of period	$ 14,966	$ 14,966
Additions	1,196	19,623
Property, plant and equipment at end of period	13,391	14,966
Cost
Property, plant and equipment at beginning of period	77,204	72,547
Additions	2,069	4,571
Change in reclamation provision	(144)	92
Disposals	(319)	(11)
Foreign exchange		5
Property, plant and equipment at end of period	78,810	77,204
Accumulated depreciation
Property, plant and equipment at beginning of period	62,238	58,429
Amortization and depletion	3,459	3,817
Disposals	(278)	(11)
Foreign exchange		3
Property, plant and equipment at end of period	65,419	62,238
Mining property [member]
Property, plant and equipment at beginning of period	4,648
Property, plant and equipment at end of period	4,015	4,648
Mining property [member] | Cost
Property, plant and equipment at beginning of period	36,083	35,909
Additions	0	0
Change in reclamation provision	(17)	174
Disposals	0	0
Foreign exchange		0
Property, plant and equipment at end of period	36,066	36,083
Mining property [member] | Accumulated depreciation
Property, plant and equipment at beginning of period	31,435	30,893
Amortization and depletion	616	542
Disposals	0	0
Foreign exchange		0
Property, plant and equipment at end of period	32,051	31,435
Other property, plant and equipment [member]
Property, plant and equipment at beginning of period	8,657
Property, plant and equipment at end of period	7,591	8,657
Other property, plant and equipment [member] | Cost
Property, plant and equipment at beginning of period	34,070	30,157
Additions	1,514	4,003
Change in reclamation provision	(127)	(82)
Disposals	(273)	(8)
Foreign exchange		0
Property, plant and equipment at end of period	35,184	34,070
Other property, plant and equipment [member] | Accumulated depreciation
Property, plant and equipment at beginning of period	25,413	22,445
Amortization and depletion	2,448	2,975
Disposals	(268)	(7)
Foreign exchange		0
Property, plant and equipment at end of period	27,593	25,413
Land and buildings [member]
Property, plant and equipment at beginning of period	921
Property, plant and equipment at end of period	920	921
Land and buildings [member] | Cost
Property, plant and equipment at beginning of period	2,460	2,333
Additions	148	127
Change in reclamation provision	0	0
Disposals	(35)	0
Foreign exchange		0
Property, plant and equipment at end of period	2,573	2,460
Land and buildings [member] | Accumulated depreciation
Property, plant and equipment at beginning of period	1,539	1,424
Amortization and depletion	114	115
Disposals	0	0
Foreign exchange		0
Property, plant and equipment at end of period	1,653	1,539
Furniture, fixtures and equipment [member]
Property, plant and equipment at beginning of period	580
Property, plant and equipment at end of period	757	580
Furniture, fixtures and equipment [member] | Cost
Property, plant and equipment at beginning of period	2,963	2,670
Additions	407	291
Change in reclamation provision	0	0
Disposals	(11)	(3)
Foreign exchange		5
Property, plant and equipment at end of period	3,359	2,963
Furniture, fixtures and equipment [member] | Accumulated depreciation
Property, plant and equipment at beginning of period	2,383	2,211
Amortization and depletion	229	173
Disposals	(10)	(4)
Foreign exchange		3
Property, plant and equipment at end of period	2,602	2,383
Computer software [member]
Property, plant and equipment at beginning of period	160
Property, plant and equipment at end of period	108	160
Computer software [member] | Cost
Property, plant and equipment at beginning of period	1,628	1,478
Additions	0	150
Change in reclamation provision	0	0
Disposals	0	0
Foreign exchange		0
Property, plant and equipment at end of period	1,628	1,628
Computer software [member] | Accumulated depreciation
Property, plant and equipment at beginning of period	1,468	1,456
Amortization and depletion	52	12
Disposals	0	0
Foreign exchange		0
Property, plant and equipment at end of period	$ 1,520	$ 1,468

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Useful lives or depreciation rates, property, plant and equipment	The estimate of the useful life of Topia was determined to be 5.3 years (a decrease from the previous estimate of 7.8 years) as at October 1, 2018.	The estimate of the useful life of the GMC was determined to be 4.3 years (an increase from the previous estimate of 1.3 years) as at October 1, 2017.
Change in depreciation expense due to change in estimates	$ 230	$ 284

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EXPLORATION AND EVALUATION ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Exploration and evaluation assets, beginning of period	$ 15,633	$ 2,112
Acquisition costs		13,623
Costs incurred subsequent to acquisition		31
Change in reclamation and remediation provision	(568)	(133)
Exploration and evaluation assets, end of period	15,065	15,633
Santa Rosa Property [Member]
Exploration and evaluation assets, beginning of period	988	988
Acquisition costs		0
Costs incurred subsequent to acquisition		0
Change in reclamation and remediation provision	0	0
Exploration and evaluation assets, end of period	988	988
El Horcon Property [Member]
Exploration and evaluation assets, beginning of period	1,124	1,124
Acquisition costs		0
Costs incurred subsequent to acquisition		0
Change in reclamation and remediation provision	0	0
Exploration and evaluation assets, end of period	1,124	1,124
Coricancha [Member]
Exploration and evaluation assets, beginning of period	13,521	0
Acquisition costs		13,623
Costs incurred subsequent to acquisition		31
Change in reclamation and remediation provision	(568)	(133)
Exploration and evaluation assets, end of period	$ 12,953	$ 13,521

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EXPLORATION AND EVALUATION ASSETS (Details 1) $ in Thousands	Dec. 31, 2018 USD ($)
Cash consideration payable	$ 100
Professional and other fees incurred	76
Consideration	176
Cash	105
Trade and other receivables	24
Other current assets	10
Inventories	1,622
Reimbursement rights	11,168
Exploration and evaluation assets	13,623
Trade and other accounts payables	(2,609)
Reclamation and remediation provision - current	(4,757)
Reclamation and remediation provision - non-current	(19,010)
Net assets purchased:	$ 176

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EXPLORATION AND EVALUATION ASSETS (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Funding of a reclamation bond in respect of Coricancha	$ 0	$ 1,234

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EXPLORATION AND EVALUATION ASSETS (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Portion of consideration paid (received) consisting of cash and cash equivalents	$ 100
Reclamation funds available	20,000
Outstanding fines or sanctions settled	4,000	$ 4,000
Reclamation and remediation provision		22,947	$ 22,965
Current provision for decommissioning, restoration and rehabilitation costs		4,473	4,446
Capital commitments		1,632
Legacy Tailings [Member]
Reclamation and remediation provision	9,502
Current provision for decommissioning, restoration and rehabilitation costs	4,757
Increase (decrease) through business combinations and disposals, reimbursement rights	$ 9,502
Nyrstar N. V. [Member]
Description of arrangement for contingent consideration arrangements and indemnification assets	Under the earn-out, Nyrstar may receive 15% of the free cash flow generated by Coricancha during the five-year period after which the mine is cumulative free cash flow positive from June 30, 2017.
Closure bond	$ 9,737
Reclamation and remediation provision	23,767
Increase (decrease) through business combinations and disposals, reimbursement rights	11,168
Nyrstar N. V. [Member] | Top of range [member]
Reclamation funds available	20,000
Outstanding fines or sanctions settled	$ 4,000	4,000
Expected settlement of obligations (years)	2017 to 2047
Coricancha Mining Complex [Member]
Proportion of ownership interest in subsidiary	100.00%
Contingent consideration arrangements and indemnification assets recognised as of acquisition date	$ 10,000
Reclamation and remediation provision		19,447	19,221
Current provision for decommissioning, restoration and rehabilitation costs		4,473	4,446
Total estimated cash flows, before inflation	$ 34,659	$ 33,941	$ 34,061
Expected settlement of obligations (years)		2019 – 2047	2018 – 2047
Weighted average risk-free rate (discount rate)	5.36%	5.40%	4.80%
Increase (decrease) through change in discount rate, reclamation and remediation provision	$ 1,666	$ 1,159
Coricancha Mining Complex [Member] | Financial guarantee contracts [member]
Capital commitments	$ 1,234

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REIMBURSEMENT RIGHTS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Reimbursement rights	$ 10,855	$ 11,034
Less: current portion	(6,385)	(4,446)
Reimbursement rights non-current portion	4,470	6,588
Legacy tailings reclamation and remediation [Member]
Reimbursement rights	8,943	8,904
Fines and sanctions [Member]
Reimbursement rights	384	623
Legal claims [Member]
Reimbursement rights	$ 1,528	$ 1,507

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REIMBURSEMENT RIGHTS (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jun. 30, 2017
Reclamation funds available		$ 20,000
Outstanding fines or sanctions settled	$ 4,000	4,000
Nyrstar N. V. [Member] | Top of range [member]
Reclamation funds available		20,000
Outstanding fines or sanctions settled	$ 4,000	$ 4,000

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TRADE PAYABLES AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Trade payables	$ 6,259	$ 6,243
Accrued liabilities	2,774	2,919
Taxes payable	240	1,025
Other payables	1,374	1,126
Trade and other payables	$ 10,647	$ 11,313

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TRADE PAYABLES AND ACCRUED LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued liabilities	$ 2,774	$ 2,919
Coricancha Mining Complex [Member]
Accrued liabilities	$ 1,912	$ 2,130

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DERIVATIVE INSTRUMENTS (Narrative) (Details) $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2018 MXN ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 MXN ($)
Forward contracts, amount of currency for purchase		$ 345,000,000		$ 110,000,000
Derivative liabilities	$ 738		$ 85
Bottom of range [member]
Prices specified in forward agreements to purchase financial assets for cash		20.35
Top of range [member]
Prices specified in forward agreements to purchase financial assets for cash		$ 21.17

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RECLAMATION AND REMEDIATION PROVISION (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total Reclamation and remediation provision	$ 27,420	$ 27,411	$ 3,466
Current Reclamation and remediation provision	4,473	4,446
Non-current Reclamation and remediation provision	22,947	22,965
Guanajuato Mine Complex [Member]
Total Reclamation and remediation provision	1,986	2,258
Current Reclamation and remediation provision	0	0
Non-current Reclamation and remediation provision	1,986	2,258
Topia Mine [Member]
Total Reclamation and remediation provision	1,514	1,486
Current Reclamation and remediation provision	0	0
Non-current Reclamation and remediation provision	1,514	1,486
Coricancha Mining Complex [Member]
Total Reclamation and remediation provision	23,920	23,667
Current Reclamation and remediation provision	4,473	4,446
Non-current Reclamation and remediation provision	$ 19,447	$ 19,221

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RECLAMATION AND REMEDIATION PROVISION (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reclamation and remediation provision, beginning balance	$ 27,411	$ 3,466
Coricancha acquisition	0	23,767
Change in estimates	(888)	24
Accretion expense	897	791
Reclamation work performed	0	(597)
Reclamation and remediation provision, ending balance	$ 27,420	$ 27,411

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RECLAMATION AND REMEDIATION PROVISION (Details 2) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
GMC and Topia operations [Member]
Total estimated cash flows, before inflation		$ 3,684	$ 3,938
Expected settlement of obligations (years)		2021 – 2044	2023 – 2047
Coricancha Mining Complex [Member]
Total estimated cash flows, before inflation	$ 34,659	$ 33,941	$ 34,061
Expected settlement of obligations (years)		2019 – 2047	2018 – 2047
Weighted average risk-free rate (discount rate)	5.36%	5.40%	4.80%
Guanajuato Mine Complex [Member]
Weighted average risk-free rate (discount rate)		2.70%	2.30%
Topia Mine [Member]
Weighted average risk-free rate (discount rate)		2.80%	2.50%

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RECLAMATION AND REMEDIATION PROVISION (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Change in estimates		$ (888)	$ 24
GMC and Topia operations [Member]
Increase (decrease) through change in discount rate, reclamation and remediation provision		370
Coricancha Mining Complex [Member]
Increase (decrease) through change in discount rate, reclamation and remediation provision	$ 1,666	$ 1,159

XML

SHARE CAPITAL (Details) Unit_pure in Thousands	12 Months Ended
	Dec. 31, 2018 CAD ($)	Dec. 31, 2017 CAD ($)
Number of share options outstanding in share-based payment arrangement at beginning of period	8,237	9,049
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period	$ 1.22	$ 1.18
Number of share options granted in share-based payment arrangement	1,810	1,101
Weighted average exercise price of share options granted in share-based payment arrangement	$ 1.59	$ 1.63
Number of share options forfeited in share-based payment arrangement	(1,134)	(468)
Weighted average exercise price of share options forfeited in share-based payment arrangement	$ 1.71	$ 1.71
Number of share options exercised in share-based payment arrangement	(591)	(1,445)
Weighted average exercise price of share options exercised in share-based payment arrangement	$ 0.76	$ 1.08
Number of share options outstanding in share-based payment arrangement at end of period	8,318	8,237
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period	$ 1.27	$ 1.22
Number of share options exercisable in share-based payment arrangement	6,461	5,448
Weighted average exercise price of share options exercisable in share-based payment arrangement	$ 1.15	$ 1.08

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SHARE CAPITAL (Details 1)	Dec. 31, 2018 USD ($)	Dec. 31, 2017	Dec. 31, 2016
Number of share options outstanding in share-based payment arrangement	8,318,000	8,237,000	9,049,000
Weighted average remaining contractual life of outstanding share options	2.29
Number of share options exercisable in share-based payment arrangement	6,461,000	5,448,000
C$0.65 [Member]
Exercise price of outstanding share options	$ 650
Number of share options outstanding in share-based payment arrangement	1,897,000
Weighted average remaining contractual life of outstanding share options	1.43
Number of share options exercisable in share-based payment arrangement	1,897,000
C$1.31 [Member]
Exercise price of outstanding share options	$ 1,310
Number of share options outstanding in share-based payment arrangement	1,153,000
Weighted average remaining contractual life of outstanding share options	0.49
Number of share options exercisable in share-based payment arrangement	1,153,000
C$1.63 [Member]
Exercise price of outstanding share options	$ 1,630
Number of share options outstanding in share-based payment arrangement	684,000
Weighted average remaining contractual life of outstanding share options	3.44
Number of share options exercisable in share-based payment arrangement	363,000
C$2.00 [Member]
Exercise price of outstanding share options	$ 2,000
Number of share options outstanding in share-based payment arrangement	8,000
Weighted average remaining contractual life of outstanding share options	0.05
Number of share options exercisable in share-based payment arrangement	8,000
C$0.71 [Member]
Exercise price of outstanding share options	$ 710
Number of share options outstanding in share-based payment arrangement	1,376,000
Weighted average remaining contractual life of outstanding share options	1.95
Number of share options exercisable in share-based payment arrangement	1,376,000
C$0.86 [Member]
Exercise price of outstanding share options	$ 860
Number of share options outstanding in share-based payment arrangement	250,000
Weighted average remaining contractual life of outstanding share options	0.84
Number of share options exercisable in share-based payment arrangement	250,000
C$1.57 [Member]
Exercise price of outstanding share options	$ 1,570
Number of share options outstanding in share-based payment arrangement	336,000
Weighted average remaining contractual life of outstanding share options	4.09
Number of share options exercisable in share-based payment arrangement	121,000
C$1.60 [Member]
Exercise price of outstanding share options	$ 1,600
Number of share options outstanding in share-based payment arrangement	1,262,000
Weighted average remaining contractual life of outstanding share options	4.45
Number of share options exercisable in share-based payment arrangement	200,000
C$2.16 [Member]
Exercise price of outstanding share options	$ 2,160
Number of share options outstanding in share-based payment arrangement	435,000
Weighted average remaining contractual life of outstanding share options	2.99
Number of share options exercisable in share-based payment arrangement	310,000
C$2.19 [Member]
Exercise price of outstanding share options	$ 2,190
Number of share options outstanding in share-based payment arrangement	917,000
Weighted average remaining contractual life of outstanding share options	2.44
Number of share options exercisable in share-based payment arrangement	783,000

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SHARE CAPITAL (Details 2)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Risk-free interest rate	1.95%	0.79%
Expected life (years)	2.89	2.63
Annualized volatility	62.00%	68.00%
Forfeiture rate	14.00%	13.00%

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SHARE CAPITAL (Details 3)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CAD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CAD ($)
Deferred share units [Member]
Number of units outstanding, beginning of period	89,200	89,200	0	0
Number of units Unitd setteled	(20,800,000)	(20,800,000)	0	0
Units outstanding, weighted average grant date fair value, beginning of period	$ 1.62	$ 1.59		$ 0
Units granted in period	183,000	183,000	89,200	89,200
Weighted average grant date fair value Unitd setteled	(20,800,000)	(20,800,000)	0	0
Units granted in period, weighted average grant date fair value		$ 1.59		$ 1.59
Number of units outstanding, end of period	251,400	251,400	89,200	89,200
Units outstanding, weighted average grant date fair value, end of period		$ 1.59	$ 1.62	$ 1.59
Restricted share units [Member]
Number of units outstanding, beginning of period	476,600	476,600	0	0
Number of units Unitd setteled	1,610	1,610	0	0
Units outstanding, weighted average grant date fair value, beginning of period		$ 1.61		$ 0
Units granted in period	585,200	585,200	483,000	483,000
Weighted average grant date fair value Unitd setteled	1,610	1,610	0	0
Units granted in period, weighted average grant date fair value		$ 1.59		$ 1.61
Units cancelled in period	(157,334)	(157,334)	(6,400)	(6,400)
Units cancelled in period, weighted average grant date fair value		$ 1.61		$ 1.65
Number of units outstanding, end of period	733,667	733,667	476,600	476,600
Units outstanding, weighted average grant date fair value, end of period		$ 1.59		$ 1.61

XML

SHARE CAPITAL (Details 4)	12 Months Ended
	Dec. 31, 2018 CAD ($)
Share price at measurement date	$ 1.47
Risk-free interest rate	0.69%
Expected life (years)	1.5
Annualized volatility	88.00%

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SHARE CAPITAL (Narrative) (Details)		12 Months Ended
	Jul. 12, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 CAD ($)	Dec. 31, 2017 CAD ($)
Description of maximum term of options granted for share-based payment arrangement		Pursuant to the 2016 Plan, options are non-transferable, subject to permitted transferees, and the aggregate may not exceed 10% of the outstanding shares at the time of an option grant and the aggregate to any one person may not exceed 5% of the outstanding shares. The exercise price of options is determined by the Board of Directors but shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than 5 years after the date of grant and cease to be exercisable 90 days following the termination of the participant’s employment or engagement.
Weighted average fair value at measurement date, share options granted				$ 660	$ 690
Forfeiture rate		14.00%	13.00%
Warrants outstanding				9,343,750	9,343,750
Warrants associated with bought deal offering [Member]
Warrants, grants in period, exercise price	$ 2.25
Warrants, grants in period	9,343,750
Weighted average fair value at measurement date, warrants issued	$ 0.43
Restricted share units [Member]
Expense from share-based payment transactions with employees		$ 611,000	$ 1,124,000
Forfeiture rate		15.00%
Restricted Share Units and Deferred Share Units [Member]
Expense from share-based payment transactions with employees		$ 710,000	$ 289,000

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income (loss) attributable to equity owners	$ (10,063)	$ 1,290
Weighted average number of shares (000's)	168,888	167,966
Earnings (loss) per share basic	$ (0.06)	$ 0.01
Incremental shares from options	0	3,066
Incremental shares from warrants	0	0
Incremental shares from RSUs and DSUs	0	275
Weighted average diluted number of shares (000's)	168,888	171,307
Earnings (loss) per share diluted	$ (0.06)	$ 0.01

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REVENUE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	$ 59,707,000	$ 62,974,000
Smelting and refining charges	(2,186,000)	(4,180,000)
Changes in fair value from provisional pricing	(273,000)	772,000
Total revenue	59,434,000	63,746,000
Silver [Member]
Notes To Financial Statements [Line Items]
Total revenue	28,344	33,181
Gold [Member]
Notes To Financial Statements [Line Items]
Total revenue	24,962	27,485
Lead [Member]
Notes To Financial Statements [Line Items]
Total revenue	3,982	2,690
Zinc [Member]
Notes To Financial Statements [Line Items]
Total revenue	$ 4,605	$ 3,798

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REVENUE (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	$ 59,707	$ 62,974
Revenue	59,434	63,746
Customer A [Member]
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	18,601	0
Customer B [Member]
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	18,779	0
Customer C [Member]
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	19,780	0
Customer D [Member]
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	2,065	24,805
Customer E [Member]
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	190	24,433
Customer F [Member]
Notes To Financial Statements [Line Items]
Revenue from contracts with customers	$ 19	$ 14,508

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REVENUE (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Notes To Financial Statements [Line Items]
Trade receivables	$ 2,939	$ 7,679
Revenue from performance obligations satisfied or partially satisfied in previous periods		$ 362
Provisional Pricing [Member]
Notes To Financial Statements [Line Items]
Contract with Customer Liabilities Revenue Subject to Provisional Pricing	$ 5,860

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INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Current expense	$ 689	$ 1,603
Deferred (recovery) expense	(37)	(137)
Income tax (recovery) expense	652	1,466
Income tax [Member]
Current expense	164	135
Deferred (recovery) expense	(56)	28
Special mining duty [Member]
Current expense	98	1,041
Deferred (recovery) expense	(357)	(270)
Withholding tax [Member]
Current expense	427	427
Deferred (recovery) expense	$ 376	$ 105

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INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net income (loss) before tax	$ (9,411)	$ 2,756
Canadian statutory income tax rate	27.00%	26.00%
Anticipated income tax at statutory rate	$ (2,541)	$ 717
Permanent differences	190	340
Differences between Canadian and foreign tax rates	(269)	143
Change in estimate	194	802
Effect of changes in statutory tax rates	0	(228)
Inflation adjustment	(141)	(537)
Impact of foreign exchange on local currencies	975	316
Change in deferred tax assets not recognized	1,746	(955)
Mining taxes and duties	(156)	778
Withholding taxes	803	532
Utilization of foreign tax credits	(149)	(138)
Other items	0	(304)
Income tax (recovery) expense	$ 652	$ 1,466
Effective tax rate	(7.00%)	53.00%

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INCOME TAXES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred income tax assets	$ 222	$ 70
Deferred income tax liabilities	(2,053)	(1,930)
Deferred special mining duty asset (liabilities)	96	(253)
Deferred tax (liability) asset	$ (1,831)	$ (1,860)

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INCOME TAXES (Details 3) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred income tax assets	$ 222	$ 70
Deferred tax liabilities	(2,053)	(1,930)
Net deferred income tax liabilities	(1,831)	(1,860)
Tax losses carried forward
Deferred income tax assets	1,399	1,855
Provision for reclamation and remediation
Deferred income tax assets	262	281
Withholding tax liability
Deferred tax liabilities	(2,053)	(1,677)
Property, plant and equipment
Deferred tax liabilities	(1,754)	(2,576)
Prepaid expenses
Deferred tax liabilities	(28)	(18)
Other deductible temporary differences
Deferred income tax assets	$ 343	$ 275

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INCOME TAXES (Details 4) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets	$ 222	$ 70
Non-capital losses in Canada [Member]
Deferred tax assets	2,822	4,834
Non-capital losses in Mexico [Member]
Deferred tax assets	16,557	10,225
Non-capital losses in Peru [Member]
Deferred tax assets	66,462	65,031
Capital losses in Canada [Member]
Deferred tax assets	$ 1,196	$ 1,196

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INCOME TAXES (Details 5) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Unrecognized temporary differences	$ 76,877	$ 60,589
Tax losses carried forward
Unused tax losses for which no deferred tax asset recognised	25,305	15,643
Property, plant and equipment
Unused tax losses for which no deferred tax asset recognised	8,919	4,908
Other deductible temporary differences
Unused tax losses for which no deferred tax asset recognised	$ 42,653	$ 40,038

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FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents	$ 24,524	$ 36,797	$ 41,642
Short-term deposits	26,057	20,091
Marketable securities	1
Trade receivables	2,939	7,679
Other receivables	475	$ 2,103
Trade and other payables	7,633
Loan receivable	5,048
Derivative assets	738
Restricted cash	1,237
Fair value through OCI
Cash and cash equivalents	0
Short-term deposits	0
Marketable securities	1
Trade receivables	0
Other receivables	0
Trade and other payables	0
Loan receivable	0
Derivative assets	0
Restricted cash	0
Fair value through P&L
Cash and cash equivalents	0
Short-term deposits	0
Marketable securities	0
Trade receivables	0
Other receivables	0
Trade and other payables	0
Loan receivable	0
Derivative assets	738
Restricted cash	0
Amortized cost
Cash and cash equivalents	24,524
Short-term deposits	26,057
Marketable securities	0
Trade receivables	2,939
Other receivables	475
Trade and other payables	7,633
Loan receivable	5,048
Derivative assets	0
Restricted cash	$ 1,237

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FINANCIAL RISK MANAGEMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Trade accounts receivable and VAT	$ 2,939	$ 7,679
Not later than one month [member]
Trade accounts receivable and VAT	2,572	4,154
Later than one month and not later than two months [member]
Trade accounts receivable and VAT	455	801
Later than two months and not later than three months [member]
Trade accounts receivable and VAT	(99)	2,170
Later than three months [member]
Trade accounts receivable and VAT	$ 11	$ 554

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FINANCIAL RISK MANAGEMENT (Details 1) $ in Thousands	Dec. 31, 2018 USD ($)
Appreciation of the USD against the currency [Member]
Confidence interval	10.00%
Appreciation of the USD against the currency [Member] | Canadian dollars per US dollar [Member]
Value at risk	$ (38)
Appreciation of the USD against the currency [Member] | Mexican pesos per US dollar [Member]
Value at risk	(2,206)
Appreciation of the USD against the currency [Member] | Peruvian soles per US dollar [Member]
Value at risk	$ 214
Depreciation of the USD against the currency [Member]
Confidence interval	10.00%
Depreciation of the USD against the currency [Member] | Canadian dollars per US dollar [Member]
Value at risk	$ 62
Depreciation of the USD against the currency [Member] | Mexican pesos per US dollar [Member]
Value at risk	2,345
Depreciation of the USD against the currency [Member] | Peruvian soles per US dollar [Member]
Value at risk	$ (213)

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FINANCIAL RISK MANAGEMENT (Details 2) - Commodity price risk [member] $ in Thousands	Dec. 31, 2018 USD ($)
Silver [Member]
Confidence interval	10.00%
Value at risk	$ 740
Gold [Member]
Confidence interval	10.00%
Value at risk	$ 566
Lead [Member]
Confidence interval	10.00%
Value at risk	$ 123
Zinc [Member]
Confidence interval	10.00%
Value at risk	$ 111

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FINANCIAL RISK MANAGEMENT (Narrative) (Details) $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2017
Proportion of advance payments of receivables	95.00%
Interest rate risk [member]
Confidence interval	1.00%
Value at risk	$ 89
Canadian dollars per US dollar [Member]
Closing foreign exchange rate	1.365	1.259
Mexican pesos per US dollar [Member]
Closing foreign exchange rate	19.657	19.735
Peruvian soles per US dollar [Member]
Closing foreign exchange rate	3.370	3.244

XML

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Capital commitments	$ 1,632
Not later than one year [member]
Capital commitments	783
Later than two years and not later than three years [member]
Capital commitments	550
Later than four years and not later than five years [member]
Capital commitments	299
Later than five years [member]
Capital commitments	0
Operating lease payments [Member]
Capital commitments	1,124
Operating lease payments [Member] | Not later than one year [member]
Capital commitments	275
Operating lease payments [Member] | Later than two years and not later than three years [member]
Capital commitments	550
Operating lease payments [Member] | Later than four years and not later than five years [member]
Capital commitments	299
Operating lease payments [Member] | Later than five years [member]
Capital commitments	0
Drilling services [Member]
Capital commitments	146
Drilling services [Member] | Not later than one year [member]
Capital commitments	146
Drilling services [Member] | Later than two years and not later than three years [member]
Capital commitments	0
Drilling services [Member] | Later than four years and not later than five years [member]
Capital commitments	0
Drilling services [Member] | Later than five years [member]
Capital commitments	0
Equipment purchases [Member]
Capital commitments	362
Equipment purchases [Member] | Not later than one year [member]
Capital commitments	362
Equipment purchases [Member] | Later than two years and not later than three years [member]
Capital commitments	0
Equipment purchases [Member] | Later than four years and not later than five years [member]
Capital commitments	0
Equipment purchases [Member] | Later than five years [member]
Capital commitments	$ 0

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COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 12, 2019	Dec. 31, 2018	Sep. 23, 2018	Dec. 31, 2017	Jun. 30, 2017
Outstanding fines or sanctions settled		$ 4,000			$ 4,000
Reimbursement rights		$ 10,855		$ 11,034
Ordinary shares [member]
Par value per share		$ 0.0619
Number of shares authorized		105,588,208
Number of shares outstanding		1,993,346
Beadell [Member]
Percentage of combined ownership	75.00%
Percentage Of Expected to ownership interests rate			38.00%
Great panther [Member]
Percentage of combined ownership	50.00%
Percentage Of Expected to ownership interests rate			62.00%
Fines and sanctions which may be levied by OSINERGMIN [Member]
Reimbursement rights		$ 1,351
Fines and sanctions to be levied by OEFA [Member]
Reimbursement rights		177
Certain civil lawsuits filed by individuals and former suppliers [Member]
Reimbursement rights		384
Claims, fines and sanctions [Member]
Reimbursement rights		384		$ 623
Nyrstar N. V. [Member] | Top of range [member]
Outstanding fines or sanctions settled		$ 4,000			$ 4,000

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Consulting services provided by Platoro	$ 22	$ 11

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RELATED PARTY TRANSACTIONS (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Salaries and benefits	$ 1,894	$ 2,514
Directors fees	417	320
Share-based compensation	1,033	889
Key management personnel compensation	$ 3,344	$ 3,723

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RELATED PARTY TRANSACTIONS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Payable to Platoro	$ 0	$ 11

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RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Key management personnel compensation, contingent termination benefits	$ 1,800
Directors' remuneration expense	$ 417	$ 320

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SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accretion	$ 897	$ 791
Change in reclamation and remediation provision	(214)	24
Interest income	(1,518)	(808)
Interest expense	20	171
Loss (gain) on disposal of fixed assets	41	(217)
Other non-cash items	$ (774)	$ (39)

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SUPPLEMENTAL CASH FLOW INFORMATION (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Increase (decrease) in other provisions	$ (713)	$ 40
Change in trade payables related to mineral properties, plant and equipment	0	96
Non-cash investing and financing activities	$ (713)	$ 136

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OPERATING SEGMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
External mineral sales	$ 59,434	$ 63,746
Exploration and evaluation expenses	13,053	9,524
Income (loss) before income taxes	(9,411)	2,756
Net income (loss)	(10,063)	1,290
Additions to non-current assets	1,196	19,623
Total assets	112,776	121,880
Total liabilities	40,120	40,739
Exploration [Member]
External mineral sales	0	0
Exploration and evaluation expenses	243	407
Income (loss) before income taxes	(3,032)	(1,491)
Net income (loss)	(3,032)	(1,491)
Additions to non-current assets	0	0
Total assets	2,427	2,568
Total liabilities	0	54
Corporate One [Member]
External mineral sales	0	0
Exploration and evaluation expenses	2,231	1,059
Income (loss) before income taxes	(4,226)	(6,201)
Net income (loss)	(5,029)	(6,733)
Additions to non-current assets	0	0
Total assets	62,008	61,273
Total liabilities	4,452	5,369
Guanajuato Mine Complex [Member]
External mineral sales	39,635	49,366
Exploration and evaluation expenses	1,456	2,606
Income (loss) before income taxes	1,028	10,865
Net income (loss)	1,120	9,997
Additions to non-current assets	959	2,122
Total assets	7,990	13,887
Total liabilities	5,995	5,867
Topia Mine [Member]
External mineral sales	19,799	14,380
Exploration and evaluation expenses	298	528
Income (loss) before income taxes	3,922	1,843
Net income (loss)	3,981	1,777
Additions to non-current assets	773	2,307
Total assets	12,813	14,102
Total liabilities	2,395	2,260
Coricancha Mining Complex [Member]
External mineral sales	0	0
Exploration and evaluation expenses	7,101	2,875
Income (loss) before income taxes	(7,103)	(2,260)
Net income (loss)	(7,103)	(2,260)
Additions to non-current assets	(536)	15,194
Total assets	27,538	30,050
Total liabilities	$ 27,278	$ 27,189