Arizona Silver Exploration Inc. – Letter to Shareholders

Jan 16, 2020

Dear Shareholders,

We hope that you had a very Merry Christmas and we wish you a Happy New Year. I have been looking forward to bringing this letter to you for quite some time given our progress in 2019 on our Philadelphia property. We have a lot to be thankful for, closing the transaction in early February and advancing to drilling in early May. Results have confirmed that the gold-silver bearing vein continues beyond the extent of the old historical high-grade workings, on all six holes drilled. Once we confirmed the presence of the vein, we then stepped out up to 100 feet and drilled three holes with a core rig, and again hit the vein with very encouraging results of 41.6 grams/tonne (gpt) Au and 94.4 gpt Ag across 0.76 metres, from just 10-10.76 metres depth.

We then flew a portion of the property with a drone-based aerial magnetic survey, which allowed us to identify a pronounced magnetic low situated immediately north of the high-grade vein intercepts. This will be the next target we plan to drill in late January, providing a drill rig is available. As many of you know, we’ve been saying for quite some time we appear to be above the boiling zone. As a result of the mag survey we now believe we may have found the location of where alteration of the host rocks was the most intense and where boiling may have occurred. Our initial 2020 drill program will now consist of 10 holes into the mag low area, which begins approximately 100 metres to the north of where we have drilled. This will be done in a fence much like our original six holes, and then we will drill along the strike of the vein at the level where we see evidence of boiling or gold mineralization. This could be as much as 500 feet down the dip, as was mined historically. WE are fully funded for this drill campaign and permitted as well.

I will quickly update our other two properties. Sycamore Canyon continues to be a work-in-progress with the US Forest Service. We hope to update you very early in the new year with the next steps in the permitting process for this property. Although it has been slow, we anxiously await putting the initial three holes into this property in 2020 and exploring what has never been drilled before. We believe Sycamore Canyon could be a company maker on its own. Please use the link to the website, images and VLF overlays. We also have Ramsey under our review. The drill design is in progress; however, we believe it is in our best interest to focus our resources and attention on our Philadelphia project where we have intersected a high grade gold system, and continue the forward momentum we have established at this time.

Recent mergers and acquisitions are happening everywhere in our sector and we firmly believe this will only increase awareness in good companies that are well structured with promising properties. This should allow an opportunity for exploration juniors. Considering we opened Arizona silver Exploration in November 2016 we have come a very long way in a very tough market.

Please note we have added a media section to the website: http://arizonasilverexploration.com/media/. Interviews and videos can be found on this page.

We look forward to a promising 2020.

Yours truly,

Mike Stark, CEO, President

Arizona Silver Exploration Inc.

C 604.833.4278

W www.arizonasilverexploration.com

#804 – 750 W Pender Street Vancouver BC V6C 2T7